21 April 2023
Well known Scottish flight school Tayside Aviation has gone into administration after 53 years of operation.
Based at Dundee Airport, Tayside Aviation provided courses from private pilot to commercial flight training. It also delivered the RAF Air Cadet Pilot Scheme for over 30 years.
A company called Interpath Advisory has been appointed as administrators who said 22 of Tayside 25 employees had been made redundant. There are also customers who have pre-paid for flight courses.
Tayside Aviation changed hands in late 2021 when it was acquired by local entrepreneur and pilot Tony Banks. Mr Banks said at the time, “We look forward to building on Tayside Aviation’s already stellar reputation, and working with the team to take the company to even greater heights.”
All the signs looked good in January 2022 when the takeover was completed
A statement from the administrators said, “At the time of purchase by the existing owner in December 2021, the Company had a significant liability for prepaid flying courses, the delivery of which adversely affected the Company’s ability to generate income from new sales as manhours and air slots were being utilised to honour legacy prepaid courses.
“At the same time, further challenges arose through delays in onboarding senior personnel which adversely impacted business performance.
“Despite a significant investment from the shareholder of £1.5 million in addition to the purchase price, these issues have led to ongoing working capital requirements that are unable to be funded.”
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said, “Clearly this is a disappointing outcome for everyone involved in this well-known and long-established business.
“Our priority is to assist those members of staff who have been made redundant, providing them with the information and support they need to claim their statutory entitlements from the Redundancy Payments Office at this very difficult time.”
Geoff Jacobs, managing director at Interpath Advisory, added, “We will be taking all steps to rapidly assess whether there are any parties who would have an interest in the business and assets, and would advise those with an interest to make contact quickly.
“We appreciate that there will be many customers who are in receipt of pre-paid flying hours. We will collate details of these parties from company records and include them within the list of creditors, whom we shall contact in due course to advise of the claim process.”
A statement from the Tayside directors said, “Our thoughts are with our dedicated team, as well as the students and RAF cadets profoundly affected by the closure.
“We are devastated that, after many months of tireless work, we have been unable to save this incredible business that has made Dundee an aviation hub for over 50 years.
“We will provide all assistance to the administrators in order to ensure our employees and cadets are treated as fairly as possible.”
Tayside Aviation ready for exciting growth under new ownership
