Former managers of Avianova have accused accountants KPMG of “gross distortion” in a report of the airline’s finances. Andrew Pyne and former chief commercial officer Mike Hayden have initiated legal action against KPMG for “libelous” statements in a report that the firm drew up on their time management of the airline. The managers began the legal process “about two weeks ago”. Avianova issued a statement saying that it would cancel all flights from Monday and file for bankruptcy, and it could not pay airports or meet licensing fees for its aircraft after minority American shareholder Indigo Partners cut off funding. But the airline continued to operate flights yesterday despite this.
The airline’s website had ceased accepting bookings late Sunday, but about 67,800 tickets have been sold for flights scheduled between Oct. 3 and 29.