The Isle of Wight couple behind the failed Scoot ferry service, Zoe Ombler and Nick Davis, are appealing for a £3m investment to save their budget airline company.
The couple are seeking a total of £3m, with £1m investment needed by Friday 1st December, before they’ve even provided any flights to their customers.
The last minute appeal has arisen after the key financial backer walked away. The ‘community ownership investments’ they are seeking do not provide a stake in the company, said Powdair earlier this week. Adding that if the company goes under in the next five years, investors would not see their money returned.
There has been an update on this story (below).
More than 5,000 people have booked flights with Powdair – the company said it would provide full refunds if it does not succeed in getting off the runway.
Similarities with Scoot Ferries?
The fall of Scoot Ferries resulted in 32 redundancies just before Christmas 2015, with a debt of nearly £250,000.
Emily Pearce from the County Press asked Zoe Ombler this week about the similarities with the failure of Scoot Ferries and Powdair.
Zoe told the County Press,
“I fail to see what on earth the failure of Scoot Ferries has to do with Powdair. I am head of commerical for an airline entirely unconnected with the IW and this is not even vaguely similar to what happened with Scoot.”
She went on to say,
“The idea that we go around doing this sort of thing as a habit – it’s not true.”
Unexpected and potentially disastrous setback
Sean Pettit, our Chief Financial Officer:
“Just as the powdair operation begins to snowball, today’s setback is both unexpected and potentially disastrous for our airline, booked passengers and resort partners.
“Operational systems and strategies are already in place, whilst ticket sales are very strong and exceeding expectations. powdair is ready to go, but we now desperately need investment.
“I’d personally like to hear from anyone interested in owning either a small or large part of our airline.”
Update 4 Dec 2017
Powdair has recently posted an update on their Website claiming that they have found a financial backer, but that flights will not occur this year.
They claim the backer, who they describe as “a professional and experienced aviation industry investor”, but decline to name, has, offered “a significant investment”. They go on to say due diligence will have to be carried out over at least a 30 day period, saying, “we have therefore made the difficult, but what we feel is correct decision, not to launch powdair this winter”.
They continue,
“Our new investor wishes to ensure that all necessary steps are taken to launch a strong, well-funded airline focused on long term success. Powdair is not going into administration. The company will continue to exist, albeit with a longer timeline for getting planes in the air.”
Previously the company stated 5,000 people had booked flights, the company claims, “we will automatically be organising full refunds for everyone booked to fly with us”.
Original source: Isle of Wight County Press
