THE Isle of Man Government has criticised airline EuroManx which ceased operating in the early part of last month.

EuroManx, which operated a service between George Best Belfast City Airport and the Isle of Man, flew its last flight from the island before informing authorities of its liquidation to avoid any of its fleet being detained because of outstanding debts - according to the island's head of government.

Chief Minister Tony Brown said: "There is no doubt this was a deliberate act by the owners of EuroManx so as to ensure that the airport authority could not arrest the EuroManx aircraft as security against outstanding debt."

He also told ministers the government had done "more than could have been expected of it in its endeavours to try to secure the [airline's] future" and that it was extremely disappointed by the company's conduct.

"Quest - the owners of EuroManx - did not even have the courtesy to advise the government of their intention to cease trading," said the Minister.

EuroManx, which was set up in 2002, claimed that a number of factors has proved to be "insurmountable obstacles" and as such, the airline had stopped all flights.

The airline said it had faced considerable financial pressures following a rise in fuel prices and a fall in passenger numbers.

Airlines Manx2 and Flybe stepped in at short notice to help rescue stranded passengers.

Under questioning from Isle of Man Members of Parliament, Minister Brown explained how the government had on various occasions since 2007 extended deadlines for the carrier's outstanding debt repayments (which included airport fees, Air Passenger Duty (APD) and Income Tax instalments).

It also researched - at the airline's request - the legality of modifying APD for EuroManx, but it was not able to do so.

The Minister revealed that both Aer Arran and Flybe were in talks to buy the struggling airline in 2008, but that the government was not satisfactorily kept abreast of events having been told the sale to Aer Arran (the first possible buyer) would "be concluded within about two to four weeks" of March 14.

The Minister added: "Towards mid-April, the Department of Transport (DoT) chased EuroManx for further news of the sale, to be informed that Quest had now engaged with Flybe for the purchase of EuroManx.

"The DoT put on record to Quest the dismay and unhappiness of the government at being kept in the dark regarding the ongoing developments and the lack of courtesy…especially as government had provided considerable assistance and support in trying to safeguard the future of EuroManx."

Flybe decided not to buy on May 8 and EuroManx went into liquidation at 1am on May 9, after which it flew its last Dash8 Aircraft off the island at 6.23am to a maintenance base, informing airport authorities "two minutes after take-off" that the airline had ceased operations.