Flight school Tayside Aviation in administration
Tayside Aviation has trained pilots for half a century
Scottish flight school Tayside Aviation, whose services have been used by the RAF, has plunged into administration.
The 53-year-old facility, based at Dundee Airport, has struggled with cash flow and has had problems getting senior recruits on board. In February the company announced that it had appointed Willem Marais as managing director.
The business is a UK CAA Approved Flight Training Organisation, providing courses from private pilot licences to full commercial airline licences. It has delivered the RAF Air Cadet Pilot Scheme for over 30 years.
Blair Nimmo and Geoff Jacobs from Interpath Advisory have been advised that when it was bought by the existing owner in December 2021, the company had a significant liability for prepaid flying courses,.
Delivering these courses adversely affected its ability to generate income from new sales.
There were also delays in hiring senior personnel which adversely impacted business performance. Despite pumping a further £1.5 million into the business, these issues have led to ongoing working capital challenges.
Despite the shareholder and directors exploring funding and sale options, cashflow pressures have intensified, resulting in the directors were forced to appoint administrators.
The business has now ceased to trade and 22 of the 25 employees have been made redundant.
Mr Nimmo, chief executive of Interpath Advisory, 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.”