Plane maker is grounded by debt

ONE of Britain's last remaining civil plane manufacturers has gone into administration.

And the demise of Europa Aircraft - which makes the planes in kit form - could spell the demise of the light aircraft industry in this country.

The company, which was awarded a coveted Millennium Product award for innovation by Tony Blair in 1998, has gone into administration with debts of more than £700,000.

The company, based in Kirkbymoorside, near York, has produced 1,000 two-seater planes with sales in 34 countries. Ten staff have been made redundant.

When the Prime Minister unveiled the aircraft at the Millennium Dome, he said: 'These are world-beating designs that will help improve the quality of our lives in the near future.'

The £35,000 plane has wings that fold neatly so it can be parked in an ordinary garage. It travels at 200mph, does 50 miles to the gallon, can take off and land from a field, and can be driven into a petrol station on a trailer to refuel with four-star.

Europa's collapse could leave up to 600 dedicated kit builders around the world without the means to finish building the plane of their dreams.

The plane can take years to assemble by enthusiasts, who buy the parts in stages.

Peter Kember, president of the worldwide Europa Club, said: 'We are trying to find out which members are owed parts. These are aircraft that have been paid for and not supplied.'

Keith Wilson, managing director of Europa Management (International), the company behind the aircraft, said: 'The current financial-situation has been caused by the development of the next project, which took longer and cost more than we anticipated.

'Also the low value of the US dollar, particularly when it went to $1.92 against the pound, erased 30% of our margin.

'My personal view is that I want to see the company up and running again as quickly as possible to the benefit of staff and the builders, and I am optimistic that a solution can be found within a month.'