City Star firms 'to be sold'
02.03.08
Two sister firms of collapsed City Star Airlines are on the brink of being sold, according to reports. City Star's bosses are said to be negotiating the sale of Aberdeen Airport based businesses Caledonian Airborne Engineering and City Star Handling to Scottish airline Loganair, which operates routes throughout the Highlands.
A 'source' told the Aberdeen Press and Journal (P&J) that a deal could be struck this week, however City Star managing director Runar Arnason denied that any discussions were taking place.
CAE provides maintenance and ground-handling for a number of commercial aircraft operators at Aberdeen and Newcastle airports. It was acquired by City Star Holdings, the Aberdeen-based airline's Icelandic parent, last year to take the failed airline's engineering in-house and provide services for other airlines. It employs 40 people at a hanger at Aberdeen Airport.
The P&J source said the six staff at City Star's ground-handling business at the north-east did not get the pay they were expecting this week. The newspaper said: ‘They have been told they will get nothing until next week. They have threatened to walk out and will almost certainly be doing so if the business is sold to Loganair, because they want it to remain independent.’
Runar Arnason said there was no deal about to be struck, adding: ‘We are not selling these businesses.’ No one at Loganair was available for comment.
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