Bank bail out saved Aer Arann

Aer Arann would have gone to the wall last week with the almost immediate loss of over 300 jobs had it not been thrown a €1m lifeline by its biggest creditor.

The Sunday Independent reports that Allied Irish Banks -- which is owed €3.9m by the troubled regional carrier -- extended the €1m in fresh funding to allow for the appointment, by the High Court, of an interim examiner.

Had this money not been forthcoming, the examinership would not have been allowed to proceed, as sufficient working capital for the airline's day-to-day expenses would not have been available.

Following the announcement of a examiner being appointed the airline's customers were assured that it was business as usual for its service out of Donegal Aiport