On MK Airlines's financial statement 2005

28-apr-07

Mk Airlines (UK) Ltd, the main client of Ostend-Bruges airport, appears to be a poor financial performer! A closer look at their 2005 financial statements reveals a bleak performance.

"Profit and loss" in 2005 unveils a very low "gross margin" of only 6,5 %. The company's "operating result" went down by 87% and costs rose 30%. MK Airlines's "turnover" dropped 25% and their "outstanding amounts" rose by 40% up to  twice the "balance total". In 2005 the "gross margin" went down by 300 %! No dividends were paid in 2005. In short a company not to invest a single penny.

MK Airlines (UK) Ltd  is wholly owned by MK Investments (Isle of Man) Ltd (founded Nov. 28th '04). The holding company of MK Investments (IOM) Ltd is MK Aviation Holdings Ltd registered in Nassau, Bahamas (1) (2). Very mysteriously, MK Aircraft Leasing (IOM) Ltd (ex "Property Leasing (IOM) Ltd"), is also mentioned as the wholly  owner of MK Airlines (UK) in the "Particulars of Mortgage" for the lease of four B-747's (9G-MKQ / MKM / MKR / MKS)  from "Volvo Aero Leasing LLC", a contract worth +/- $ 24 million. 

Money (was) is being pumped into MK Airlines via obscure "Off shore" financing from so called "Tax Heavens". This is usually done for three possible reasons:
- TAX EVASION (cause poverty)
- MONEY LAUNDERING (re: the "Air Holland" case)
- CORRUPTION FACILITIES

As British law requests only very limited transparency, British government  gives us very limited insight in the kitchen of UK based companies. We can only guess what is really happening at MK Airlines's HQ. All above is based on the information found through the official UK and IOM registrars. Finding data on companies located on "Tax Heavens" on off-shore Islands like the Bahamas or the British Virgin Islands is just plain impossible. A real shame in this day and age.

Why the City of Ostend and the Flemish Government are keen to cooperate with - and threat as a preferential partner - a company such as MK  Airlines is even a greater mystery. It can only be viewed in the absence of alternatives? Wiloo hopes to question the authorities soon and find out more, especially on the subject of credibility. Many "strange" companies in the past have left Ostend Airport  (and the Flemish taxpayer) without at the end ever paying "a single Euro" for services provided by the airport... meanwhile leaving or dumping wreckage on the aprons! We surely want to know something more about MK Airlines (UK) LTD and friends.

Stay tuned!

(1) On Feb. 14th '06 some 34.999.999$ moved from "Northcote Holdings Ltd" on the Bahamas to "MK Aviation Holdings Ltd" on the British Virgin Islands.

(2) On Mar. 22nd '07 some £ 3,8 million of preference shares were bought by "Jackson Aviation (UK) Ltd.