Tayside Aviation owner Tony Banks says the collapse of the historic Dundee flight school has been “personally devastating” and cost him £3 million.
The business, which had operated in Dundee for more than 50 years, fell into administration on April 20.
A total of 22 staff immediately lost jobs, while it has also left hundreds of students facing an uncertain future.
Many of them are also thousands of pounds out of pocket.
There have been calls for Mr Banks to provide answers as to how the company collapsed just 16 months after he acquired it.
Now the prominent entrepreneur, who made his fortune founding care firm Balhousie, has broken his silence.
Tony Banks statement on Tayside Aviation failure
In a statement to The Courier, a spokesperson for the entrepreneur said the decision has been “personally devastating”.
The spokesperson added: “Before taking this difficult decision, all avenues were exhausted to sustain the business for the future.
“This includes over £3 million personal investment, as well as seeking funding from additional investors.
“Unfortunately, the business was unable to overcome the impact of the significant liability for prepaid flying courses, which existed at the time of purchasing of the business.
“The delivery of which has crippled the company’s ability to generate income from new sales, as man-hours and air slots were being utilised to honour legacy prepaid courses.”
No financial support available
The statement said Mr Banks had consulted with a Transport Scotland, Dundee City Council, local MPs and MSPs, Scottish Enterprise and Highland and Island Airports Limited, which operates Dundee Airport, prior to administrators being appointed.
“Despite a number of helpful discussions, there was no material financial support available,” it added.
The statement concluded: “Mr Banks is continuing to work with the administrators to ensure that students and employees are treated fairly at this difficult time.”
Administrators said last week they have received a “significant” number of enquiries about buying the collapsed flight school.
At this stage, they say they are looking to sell the whole business rather than specific assets.
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