Budget airline fails to take off

Last updated at 10:43 09 June 2004


A Luton-based airline has become the latest no-frills flyer to go bust - without even getting in the air.

Now was launched at a swish Press conference in London last year, but 15 months later the airline that promised to be a 'second-generation' low-cost carrier to rival the likes of Ryanair and easy-Jet has called in the receivers.

It is the latest in an increasing fleet of budget airlines going bust amid a price war that Ryanair boss Michael O'Leary has warned will lead to a 'bloodbath'.

Now said: 'Following problems with completing the agreed funding for the Now Airlines project, the launch has been deferred until further notice. Now Airlines has been put into receivership.'

Its launch was to have been led by Lars Welinder, a former tax-free shopping executive, and Nick Grimwood, a one-time Virgin Express pilot whose previous interests included the failed start-up of a low-cost transatlantic carrier.

Other directors included ex-Liffe trading exchange chairman Jack Wigglesworth and Albert Churchman, a former senior partner of accountants Ernst & Young.

The airline was to have been launched with an innovative business-model with fixed fares such as £40 Luton-Manchester and £60 Luton-Rome. But it failed after the collapse of a Luxembourg-based syndicate of high-net worth individuals who had pledged to back the start-up to the tune of £10 million.

Other recent industry failures include Birmingham-based Duo and Air Planet, based at Leeds Bradford. Irish airlines SkyNet, Jet-Green and JetMagic have also gone down this year, alongside a handful of budget players on the Continent.

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