Latest & Past News ( News about Scheduled Airline Failures )

04 Feb, 2012

TAS-Air goes into liquidation
News reports state that TASMANIAN airline and pilot training organisation Tas-Air Pty Ltd has gone into voluntary liquidation. Tas-Air told its employees yesterday and flights have ceased. A message on the company's website last night said ``pre-booked flights and future bookings should be directed to an alternate operator''. Tas-Air offered flights to Hobart, Devonport, King Island, Burnie and Melaleuca. Robert Tenbensel, of Tenbensel & Dee Chartered Accountants, was appointed liquidator. A spokesman for Mr Tenbensel said one of his first tasks would be to determine why the business failed.

03 Feb, 2012

Malev Hungarian Airlines ceases operations
News reports state that Hungarian flag-carrier Malev ceased operating early on Friday, ending 66 years of almost continuous service, after its planes were held overseas for unpaid debts. Prime Minister Viktor Orban told Kossuth radio on Friday that the decision to ground Malev, which was placed under creditor protection earlier in the week, was made after two aircraft were not allowed to take off from Tel Aviv and Ireland. In a December white paper, the government said the potential loss of the airline, which spent about 50 million euros a year on air service charges and real estate fees, could jeopardise the operation of Budapest Airport. The airline accounts for 40 percent of turnover at the airport, owned by Germany's Hochtief and four financial partners. "If this situation continues for a longer period of time, then we will obviously have to revise our business plans for this year and all our contractual obligations," Mihaly Hardy, a spokesman for the airport, told Reuters. "There are some estimates that over 20 or 23 routes of Malev will never be served by other airlines," he added. It was not immediately clear whether Malev's halt would automatically trigger a compensation option in the privatisation agreement of the airport first signed in 2005 with BAA, which sold it two years later to its current owners. In the white paper, the Development Ministry had said the state could be required to pay about 1.5 billion euros ($2 billion) in such circumstances, with "grave consequences for the maintenance of the budget deficit target". The ministry and Hochtief could not immediately respond to Reuters questions on Friday regarding the agreement. Malev said its suppliers had lost confidence and started to demand advance payment for their services, while the government could no longer provide cash injections for the company following a European Union ruling last month. "This has accelerated the outflow of cash to such an extent, that by today the situation of the airline has become unsustainable," Malev said on Friday. "The board, in order to minimise losses, has ordered a halt in operation of the Hungarian national airline." All flights were grounded from 0500 GMT. The airline's www.malev.hu website was taken offline and replaced with a message informing passengers about compensation options.

29 Jan, 2012

Air Alps ceases trading
News reports state that financially troubled Austrian regional Air Alps has ceased operations. The carrier operated three Dornier 328-100s, on mainly codeshare flights for Alitalia from Rome Fiumicino-Parma and Bolzano as well as Milan Malpensa–Salerno. Welcome Air, a small regional carrier based in Innsbruck and owned by Swiss Lions Air Group AG, owns 76% of Air Alps. Negotiations are under way with Welcome Air to either take over the carrier or form a new one. Welcome Air CEO Sabine Mertens told reporters he was not able for comment.

28 Jan, 2012

Spanair ceases flying, thousands stranded
News reports state that "Faced with the lack of financial visibility for the coming months, the company has decided to cease its operations as a measure of caution and safety," Spanair said in a statement just before 9.30pm last night. Its last scheduled flight landed at 10pm, leaving rivals such as Iberia, Vueling and Easyjet to share out the passengers left stranded by the airline, which runs flights within Spain and Europe. Spanish media said at least 22,000 passengers were affected over the weekend but Spanair spokespeople were not immediately available to confirm this. The airline operated charter flights from Gran Canaria, Lanzarote and Malaga to Dublin during the summer season. A queue of 200 surprised passengers formed at Spanair counters at Barcelona airport yesterday evening shortly after the announcement. By this morning airports authority AENA said the situation was normal at Madrid's Barajas airport and Barcelona's El Prat, where special lounges had been allocated for Spanair customers. "Passengers are turning up at these zones and the other companies are putting them on flights," an AENA spokeswoman said. She said 55 Spanair flights were scrapped at Madrid and 54 at Barcelona today alone, with a handful of flights cancelled at Palma de Mallorca and Gran Canaria. The company said in its statement: "The Spanair management regrets this and apologises to all those people who are affected by this situation."

27 Jan, 2012

Czech Connect Airlines files for bankruptcy
News reports state that Czech Connect Airlines has filed for bankruptcy, with the operations of the Ostrava-based carrier ceasing on 21-Jan-2012. According to local medial reports from Mladá fronta dnes and Radio Prague, the suspension occurred after one of the carrier's main investors reportedly withdrew from the carrier. The airline’s owners and management will be discussing measures to save Czech Connect Airlines, launched in 2011, and to minimise the impact on customers, employees and business partners. Czech Connect Airlines' network was predominantly focussed on scheduled services to Russia and charter services for travel agencies to summer destinations.

22 Jan, 2012

Cirrus Airlines ceases operations
News reports state that German regional carrier Cirrus Airlines (C9) ceased operations Jan. 20, announcing insolvency at a court in Saarbrucken. German Aviation Authority Luftfahrt-Bundesamt said the financially troubled carrier was not permitted to transport passengers and freight on a regular air services basis. C9 said that all 300 employees are still working but it is unclear if and when the carrier will restart operations.

07 Dec, 2011

Iata forecasts big drop in airline profits
News reports state that News reports state that The International Air Transport Association (IATA) cut its forecast for airline industry profits by a quarter to $3.5 billion for 2012 and warned the industry could plunge to an $8.3 billion loss if Europe's debt problems trigger another banking crisis. IATA, whose 240 airlines carry 84 percent of global traffic, had previously forecast industry profits of $4.9 billion in 2012 after an estimated profit of $6.9 billion this year. The 2011 figure remains unchanged in IATA's latest industry outlook. "The biggest risk facing airline profitability over the next year is the economic turmoil that would result from a failure of governments to resolve the eurozone sovereign debt crisis," said IATA Director General Tony Tyler on Wednesday. "Such an outcome could lead to losses of over $8 billion, the largest since the 2008 financial crisis," he added. So far aviation has been relatively optimistic about its prospects as Europe teeters on the edge of recession, with rising demand in Asia and capacity restraint in North America seen boosting profits and driving talk of a two-speed market. But IATA, whose members include the likes of International Airlines, Lufthansa, Air China and American Airlines, said it could not ignore growing economic risks.

29 Nov, 2011

American Airlines (AMR) files for Bankruptcy Protection
American Airlines, Inc. announced throught its website that its parent company, AMR Corporation, and certain United States-based subsidiaries today voluntarily filed for Chapter 11 reorganization under United States law. American took this action in order to achieve a cost and debt structure that is competitive in the airline industry so that it can continue delivering a world-class travel experience for its customers. American expects to continue normal business operations throughout the reorganization process, and the business will continue to be operated by the Company's management. The United States Chapter 11 reorganization process enables a company to maintain normal business operations while it establishes a competitive cost and debt structure. This action has no direct legal impact on any American Airlines operations outside the United States. American Airlines is operating normal flight schedules, honoring tickets and reservations as usual, and making normal refunds and exchanges. American's AAdvantage® frequent flyer program is not affected. American remains part of the oneworld® alliance, of which it is a founding member, and all of its codeshare partnerships continue, enabling customers to earn and redeem miles on convenient flight options worldwide.

22 Nov, 2011

Thomas Cook shares crash after default warning
News reports state that Thomas Cook asked lenders to come to its rescue for the second time in five weeks, sending shares in one of the world's oldest travel operators into freefall as it warned of a possible default. Analysts said the move threw into question the future of the 170-year-old firm, which provides holidays for 19 million customers each year and employs 30,000 staff. The company has been hit hard by tough trading conditions, especially in Britain, where its core customer base of families with young children has been particularly affected by tough economic conditions. It was also hit by unrest in popular destinations such as Egypt, Tunisia and Morocco. Evolution's James Hollins said it was shocking that Thomas Cook needed to renegotiate its financing just 32 days after a previous deal with its lending banks. "Legitimate questions will be asked as to whether Thomas Cook can survive long-term and whether there is any value left in its equity," Hollins said. Shares in Europe's second-biggest travel firm by holidays sold, were down 75 percent at 10.4 pence by 1605 GMT, taking total losses since the start of the year to 95 percent and leaving the group worth around 100 million pounds. In debt markets, Thomas Cook's 300 million pound and 400 million euro bonds were trading at less than half of face value while its 150 million and 850 million pound credit facilities were being quoted at 60-65 percent of face value and looked set to drop further, according to traders. Espirito Santo Investment Bank advised against holding Thomas Cook equity at any price. "While the banks may yet again allow the group flexibility, realistically, we would expect Thomas Cook will be completely straight-jacketed by the banks," said Espirito Santo analyst Geetanjani Sharma. Sharma also said Thomas Cook's suppliers and Britain's Civil Aviation Authority could take a closer look at the viability of allowing bookings from Thomas Cook, which had issued a string of profit warnings this year.

15 Nov, 2011

SeaFrance suspends services ahead of court hearing
News reports state that French ferry company SeaFrance has suspended services today ahead of a court hearing that will dictate the future of the company. The court will decide whether SeaFrance, which has been in administration since June 2010, will be sold or liquidated. A statement on the company's website said the board and receivers had decided, along with the French authorities, to suspend operations from 4am today. They may be resumed after the hearing. It said: "We have taken this decision, with full knowledge of the consequences, to safeguard the security of the passengers, crews, vehicles and ships. We are conscious of the inconvenience this situation is causing and we apologise for this. We will keep you informed of any changes in the present situation." A spokeswoman said customers with forward bookings would have their tickets transferred to another operator. According to reports, a joint venture between ferry companies DFDS and LD Lines, and a separate bid from a SeaFrance staff and union co-operative, have been tabled to acquire the company’s ships. An earlier court hearing valued the SeaFrance fleet at between €123m and €168m. SeaFrance operates ferry services between Calais and Dover and is 100% owned by the French railways, SNCF. It carries more than 3.5 million passengers a year.

11 Nov, 2011

Air France profits down 95.2%
News reports state that Air France KLM Group reported a net profit of €14 million ($19.2 million) for the quarter ended Sept. 30, down 95.2% from net income of €290 million in the year-ago quarter, due mainly to foreign exchange losses and a decline in the fair value of hedging instruments. Chairman and CEO Jean-Cyril Spinetta said the group’s “insufficient profitability in recent quarters, in an economic environment affected by the weak global demand and high oil prices, shows that we need to go further” despite the “many measures” pursued over the last three years. AF KLM last month announced a shakeup of its top management, which included the return of Spinetta as group CEO and AF CEO. Spinetta said the new management will focus on three priorities: a “rapid” reduction of the company’s €6.5 billion net debt, additional cost savings, and the restructuring of its short- and medium-haul business. He declined to go into detail and said an action plan will be presented during the first quarter of 2012.

01 Nov, 2011

Sky Express ceases operations
News reports state that Russian authorities withdrew the air operator’s certificate (AOC) for Sky Express (XW) owing to the deterioration of its performance and finances, according to Rosaviatsia—Russia’s Dept. of Aviation/Ministry of Transport. XW was Russia’s first low-cost carrier.

07 Oct, 2011

Airlines' 2Q earnings fall 40% to $2.3 billion
News reports state that the world's airlines posted a cumulative second-quarter net profit of $2.32 billion, down 40% from $3.71 billion in the year-ago period, IATA reported. For the first time in eight quarters, airline profits declined, with the exception of Europe, IATA said in its latest Airlines Financial Monitor released Wednesday. Global operating profit for the second quarter ended June 30 was $3.94 billion, down 43% from $6.95 billion in the year-ago quarter, according to the report. IATA last month predicted sluggish growth and weak profits in 2012. IATA DG and CEO Tony Tyler said that airline industry net profits should total $6.9 billion in 2011 on revenue of $594 billion, up from the previous projection of $4 billion, but well down on the $16 billion achieved in 2010. For the second quarter, IATA said Asia/Pacific airlines posted the largest decline with a net profit of $648 million, down 56% from $1.49 billion, hardest hit by cargo weakness. By contrast, profits improved to $1.12 billion for the European airlines, up 9.4% from $1.02 billion year-over year, IATA reported. Load factors slipped in August on most markets in the face of weaker demand, said IATA, but passenger load factors were still close to the highs of 2010. “The slippage in August and declining twin-aisle aircraft utilization suggests the challenges of maintaining favorable supply-demand conditions are growing,” IATA said. The organization said freight markets “are increasingly challenging with falling yields and still high fuel costs increasing break-even load factors.” IATA noted the situation is better in passenger markets. “US airlines in particular have been able to raise passenger yields on international markets by around 9% so far this year,” IATA stated in the report.

06 Oct, 2011

IATA Warns of tough times ahead for Airlines
News reports state that The International Air Transport Association warned of tough times ahead for the airline industry. IATA director general and chief executive Tony Tyler said the European Union’s carbon emission trading system would add to the financial pressures on airlines despite an offer of free permits, which he criticized as “linguistic gymnastics.” IATA has already warned that a weak global economy would prompt a 29-per-cent fall in airline profits in 2012 and cut the industry’s profit margins to a wafer thin 0.8 per cent from 1.2 per cent this year. “There is so much uncertainty over the world economy, obviously in Europe and United States,” Mr. Tyler said at a media briefing

04 Oct, 2011

Avianova stops online ticket sales as it faces a financial crisis
News reports state that Russian low-cost carrier Avianova has stopped online ticket sales from Sunday and could stop flights as soon as Monday night, Moscow News reported. It said the carrier is facing “a difficult liquidity crisis” and its partners will stop maintenance of its six Airbus A320s from Oct. 3. About 70,000 passengers could face travel disruptions. The company encountered financial problems earlier this year when its shareholders, Alfa-Group A1 (51%) and US investment fund Indigo Partners (49%), ceased funding the venture following a $1 million injection in January. At the end of 2010, A1 discovered the carrier’s losses were $20 million larger than expected. The total losses were approximately $37 million, Moscow News said, quoting sources from A1. The carrier named Dmitri Mirgorodsky chief operations officer in December. Airline management said it will try to find the money to compensate passengers and if there is not enough money, it will be paid out from a government program created to compensate passengers. It also has debts on lease payments for its A320s and is being sued by ILFC. Avianova carried 866,000 passengers in the first eight months of this year and is the 12th largest Russian airline in terms of passenger numbers, according to Moscow News. * Under the terms of IPP's Insurance cover will be excluded for this airline for all insurance / tickets bought or effected from 4th October 2011.

03 Oct, 2011

KMV Airlines ceases flying
News reports state that Rosaviatsiya, the Russian civil aviation authority revoked the operating license of Kavminvodyavia, better known as KMV, on 1 October 2011, citing the airline's failure to address concerns raised in August 2011 around the carrier's financial and economic status. KMV was the largest airline in southern Russia, operating a fleet of seven Tupolev Tu-154Ms and two Tu-204-120s from the city of Mineralnye Vody (which translates as Mineral Water!). Under plans announced in 2010, KMV had been expected to be merged, along with five other carriers owned by Rostekhnologii, the huge state owned technology holding company, into flag-carrier Aeroflot-Russian Airlines in 2010 or 2011.

22 Sep, 2011

Air Baltic files for protection from Bankruptcy
News reports state that AirBaltic (BT) filed for legal protection from its creditors Wednesday and submitted a plan to the court for continued operations. The loss-making Latvian national airline is entangled in a destructive dispute between its two main shareholders, the Latvian state and Baltic Aviation Systems (BAS), the company controlled by the carrier's president and CEO, Bertolt Flick. The dispute centers on a capital injection, but is a culmination of years of tense relations and political wrangling. The Latvian state owns 52.6% of BT while BAS has 47.2%. In a statement, Flick said that the government of Latvia, as a minority shareholder in the airline, “has neglectfully and repeatedly delayed any decisions regarding the capital increase” and that BAS has declared its willingness to cover the capital increase fully or proportionally together with the government of Latvia for the past six months. In order to come out of a stalemate, “BAS agreed to all government conditions on Sept. 16. On Sept. 20, the government again did not take a decision to participate in the capital increase of the airline, or to allow BAS to increase the capital unilaterally, but suddenly and surprisingly announced potential sale of its shares in the airline,” Flick said. By initiating bankruptcy protection, Flick is attempting to prevent the Latvian government from interfering in airline decision making. As part of the procedure, an administrator is nominated to be responsible for the legal protection plan that all parties have to follow—including shareholders, management and the supervisory board. The administrator and the plan for continued operations must be approved by the court. “The board of airBaltic is currently in negotiations with all the stakeholders of the airline,” Flick said. “All of them, except the government of Latvia, are ready to support the airline in the future. The legal protection plan, approved by the court, must be obeyed and will help to overcome the blockage created by the government of Latvia as a minority shareholder.” He added that the management will not change during the period of legal protection “and all the creditors of the carrier will receive the outstanding debts.”

03 Aug, 2011

Disaster aftermath pushes ANA to ¥8.4 billion June quarter loss
News reports state that still reeling from the aftereffects of March's earthquake, tsunami and nuclear crisis in Japan, All Nippon Airways incurred an ¥8.4 billion ($107.9 million) net loss for its fiscal first quarter ended June 30, widened from an ¥5.2 billion net deficit in the prior-year period. "The losses during the period reflect the severe disruption caused by the Great East Japan earthquake in March, which resulted in a significant decline in passenger numbers," ANA stated Friday. "Despite the steady recovery of the Japanese economy during the period, the short-term outlook remains unclear due to factors including restrictions on electric power distribution, the nuclear power shutdown and a steep rise in crude oil prices."

11 Jul, 2011

Mat Airways ceases flying
News reports state that the Macedonian carrier suspended operations until further notice on 20 June 2011, having fallen into financial difficulties. Mat Airways' only aircraft is an owned Boeing 737-500 (reg Z3-AAM, serial 25249). Airline officials told local reporters earlier this week that the suspension was only temporary. Establsihed in 2009 as a successor to MAT Macedonian Airlines, the company is a joint venture between leading Serbian tour operator Kon Tiki Travel, the Belgrade-based Metropolitan Investment Group and Skopje-based Gomeks Financing. Regular charter services for Kon Tiki Travel were launched from Skopje and Belgrade in August 2010. It is understood that Kon Tiki has been experiencing its own financial problems and wants to concentrate on its Serbian-based operations. In April 2011, it was reported that Skywings Group, owner of the other Macedonian airline, Air Lift Service, (also known as Airlift Airlines) was acquiring 50% of MAT Airways and that the two carriers were to be merged. The status of this transaction at the time of the suspension of services is unclear.

11 Jul, 2011

Air Guenca supsends operations
News reports state that the Ecuadorian domestic airline, which launched services linking Cuenca with Guayaquil and Quito in August 2010, had its operations suspended by the country's civil aviation authority; Direccion de Aeronautica Civil (DAC) on 21 June 2010. Reports suggest that DAC had safety concerns after technical problems were identified with the carrier's only aircraft, a leased Boeing 737-500 (reg HC-CJB, serial 26287). It doesn't look good for the carrier, which, the week after the suspension, was ordered to leave Cuenca's Mariscal Lamar airport over a debt of $200,000 in rent and taxes owed to the airport authority. Earlier this week (2 July 2011) Triton Aviation International, owner of the 737, repossessed the aircraft and ferried it back to Miami.

07 Jun, 2011

World Airline body states profit warning that hits airlines
News reports state The International Air Transport Association (IATA) has again revised its forecasts for the airline industry. The forecasts have been revised on the back of surging oil prices, according to the industry body, and could force some airlines out of business. Many airlines went bust when fuel prices rose in 2008. Oil prices reached a peak of $147 a barrel in the summer of that year, forcing many companies into liquidation. Today, IATA said global airlines will make a profit of $4 billion (£2.4 billion) for 2011 – down from the $8.6 billion estimated in March but much lower than the $18 billion it forecast in 2010. There are fears about the impact on oil supplies as unrest in Libya and the Middle East continues; the nuclear disaster in Japan has also been blamed for the weak outlook. Giovanni Bisignani, IATA’s director general, said: “Natural disasters in Japan, unrest in the Middle East and North Africa, plus the sharp rise in oil prices have slashed industry profit expectations. “That we are making any money at all in a year with this combination of unprecedented shocks is a result of a very fragile balance,” he added. Oil costs rose to $115 last month, up from $84 in February. The industry’s fuel bill is likely to rise by $10 billion this year to $176 billion, with fuel accounting for almost one third of airline’s costs, IATA added. Finally, IATA said passenger numbers are expected to grow by 4.4% in 2011, while cargo transport volumes are set to increase by more than 5% – again these estimates are much lower than previous forecasts.

06 May, 2011

Aer Lingus chief warns of further cost-cutting
News reports state that High fuel costs, low winter demand and hard-pressed consumers have prompted Aer Lingus to caution that additional cost-cutting measures may be required at the airline to ensure that it maintains a profit trajectory. Aer Lingus chief executive Christoph Mueller delivered the warning yesterday as the company posted a first quarter pre-exceptional operating loss of €53.7m -- nearly 42pc worse than it reported in the first three months of 2010. A €2.2m spend on IT systems during the latest period drove the total operating loss to almost €56m.

10 Mar, 2011

High oil price cuts airline profits by almost 50%.
News reports state that IATA has downgraded its airline industry outlook for 2011 to $8.6 billion from the $9.1 billion it estimated in December 2010. This is a 46% fall in net profits compared to the $16 billion (revised from $15.1 billion) earned by the industry in 2010. On expected industry revenues of $594 billion, the $8.6 billion 2011 profit equates to a net profit margin of 1.4%. “Political unrest in the Middle East has sent oil over $100 per barrel. That is significantly higher than the $84 per barrel that was the assumption in December. At the same time the global economy is now forecast to grow by 3.1% this year—a full 0.5 percentage point better than predicted just three months ago. But stronger revenues will provide only a partial offset to higher costs. Profits will be cut in half compared to last year and margins are a pathetic 1.4%,” said Giovanni Bisignani, IATA’s Director General and CEO.

24 Feb, 2011

EasyJet chief warns of fresh airline failures as oil surges Premium
News reports state that EASYJET boss Carolyn McCall warned yesterday that accelerating fuel prices could force a number of airline failures this year as oil surged above $110 a barrel for the first time since 2008 yesterday as the Libyan crisis showed little sign of abating. The rising price is spreading fears among company bosses that the high price will pump up inflation and may knock the global recovery off course.

18 Nov, 2010

Viking Airlines AB files for Swedish equivalent of Chapter 11 administration
News reports state that Viking Airlines AB has filed for the Swedish equivalent of Chapter 11 administration in a bid to relaunch its UK operations next year, Travel Weekly understands. The airline has asked creditors to accept a deal which allows it to wipe some of its debt and relaunch next year with more streamlined operations.

12 Nov, 2010

Pontins goes into administration
News reports state that administrators have been appointed to the holiday park operator Pontin's Limited, it has been confirmed. Pontin's has been a seaside tradition since shortly after World War II. The company employs around 850 staff across five sites in Britain at Brean Sands in Somerset, Camber Sands in Sussex, Pakefield in Suffolk, Prestatyn Sands in Wales and Southport in Merseyside. KPMG has announced that Jane Moriarty, David Costley-Wood and Rob Croxen have been appointed as joint administrators.

20 Oct, 2010

Cyprus Turkish Airlines declares bankruptcy
News reports state that the board of the debt-laden Cyprus Turkish Airlines, or KTHY, decided to declare bankruptcy late Tuesday after determining all options to sell the airline to a private company had been exhausted. In a meeting in Nicosia, the KTHY board, under the leadership of Fikret Çavuşoğlu, decided to declare “controled bankruptcy.” The board applied to a Nicosia court Wednesday. The term refers to a process between a prepackaged bankruptcy and a court process, by persuading at least some creditors to agree to a plan for repayment of debt. “With its known debt of $140 million, KTHY has come to the point of bankruptcy and it will be liquidated,” Anatolia news agency quoted Çavuşoğlu as saying. “There are many reasons behind this bankruptcy: management issues, the embargo due to the non-recognition of the Turkish Republic of Northern Cyprus and not making the necessary decisions in time.” KTHY was “an important institution that contributed to transportation, tourism, cargo services and culture” in northern Cyprus, the chairman said. “I think the void left by the bankruptcy will be filled as soon as possible. Efforts to that end, though outside of [our authority], are ongoing. I hope that in the shortest time possible a new company and joint venture will be formed.” The bankruptcy came despite “all self-sacrifices of employees, including the relinquishment of an important portion of salaries” and “state aid of nearly 40 million Turkish Liras,” Çavuşoğlu said. He said the board expects the northern Cyprus government to protect “the bread and butter” of employees. Speaking on Wednesday, Çavuşoğlu said it is “upsetting” that a company with a history of 36 years is dying this way.

20 Oct, 2010

Hamburg International files for insolvency
News reports state that the Airline Hamburg International has filed with the District Court of Hamburg on a request to open insolvency proceedings. Laut einer Meldung des Amtsgerichts ist der Rechtsanwalt Sven-Holger Undritz zum vorläufigen Insolvenzverwalter bestellt worden. According to a report of the district court, the lawyer Sven-Holger Undritz has been appointed provisional liquidator. Laut dem Touristikmagazin FVW hat Hamburg International daraufhin den Flugbetrieb komplett eingestellt. According to the tourism magazine FVW International, Hamburg, then the operations set completely. Bereits seit längerem kursierten Gerüchte über finanzielle Probleme der Ferienfluggesellschaft. Have long been circulating rumors about financial problems of the charter airline. Noch bis Dienstag war jedoch lediglich bestätigt, dass die Basis in Weeze aufgegeben werden sollte. Until Tuesday, however, was only confirmed that the base should be abandoned in Weeze.

18 Oct, 2010

Viking Airlines suspends operations
News reports state that the Swedish airline said tonight it had “temporarily ceased operations” and job losses were “inevitable” but it was planning to “reorganise and restructure” over the next three months. The aircraft in its fleet, three leased Boeing 737-800s and a single Boeing 737-300, have been returned to their owners. Many of Viking’s customers were provided by Kiss Flights, which went into administration this summer, and speculation about its future has continued since then. One of Viking’s backers was Black Pearl Investments, the investment vehicle linked to former XL Leisure Group chief executive Phil Wyatt.

01 Oct, 2010

Star1 Airlines files for bankruptcy
News reports state that the writing was on the wall for the flailing company, but now it is official: Star1 Airlines have applied to the court to file for bankruptcy. The airline had a swath of legal claims against it in quick succession after their plane was detained last week in Dublin following a dispute between management and investors. Airline staff and Vilnius International Airport followed close behind, registering claims against the airline. “JSC Star Team Group being unable to continue providing funding to its wholly-owned JSC Star1 Airlines and taking into account that Star1 Airlines is unable to operate the only aircraft due to its detention in Dublin airport decided to initiate bankruptcy to JSC Star1 Airlines,” the company said in a press release. “JSC Star Team Group, as the only shareholder of Star1 Airlines, assigned the director of the company to prepare and submit the application for initiation of bankruptcy and other relevant documents to Vilnius District Court no later than 5th October, 2010.” “All creditors of Star1 Airlines will be informed about their claims’ submission procedures and deadlines after the application for bankruptcy is submitted to the Court,” the airline said. Passengers who bought tickets should continue to lodge claims with the airline, though recovering funds is unlikely because of the list of creditors who come before them in bankruptcy proceedings. The airline was given until Thursday this week to submit documents to the government proving that it could continue to operate, but since it failed to do so, it has had its licence to fly stripped. The airline remains at Dublin airport for the time being.

28 Aug, 2010

Mexicana stops flying
Current management received the company in a state of technical bankruptcy seven days ago after it filed for protection under Mexico's insolvency laws Financial deterioration and lack of agreements force Grupo Mexicana to stop flying Grupo Mexicana deeply regrets any inconvenience caused to passengers Nuevo Grupo Aeronáutico, S.A. de C.V. ("Grupo Mexicana") announced this morning that as a result of the group's delicate financial situation when it changed owners a week ago, compounded by failure to reach agreements that would allow for the capitalization of its three airlines, Mexicana Airlines, MexicanaClick and MexicanaLink flights will suspend operations until further notice as of midday (12:00 p.m.) on Saturday, August 28, 2010. Among the factors that have contributed to this announcement are: 1. Grupo Mexicana's fragile financial situation, which has deteriorated further over the last four weeks due to the previous management's decision to suspend ticket sales, forcing the company to continue operating in the interests of passengers without receiving any revenue. 2. No substantial agreements were reached to give companies in the Group long-term viability. 3. Lack of effectiveness in the insolvency (Concurso Mercantil) process intended to protect additional financial resources available to the company so it could to continue operating. 4. Given the uncertainty of the situation, certain suppliers have begun demanding advanced payment of services that are essential to the airlines' operations. Today's decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company's long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to. We hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding. If you have bookings or/and have paid for a Grupo Mexicana flight and have a reservation code, we would like to inform you that: 1. All Mexicana, MexicanaLink and MexicanaClick flights will be suspended until further notice as of midday on Saturday, August 28, 2010. All flights programmed to depart after this hour will be canceled. 2. Grupo Mexicana deeply regrets any inconvenience this decision may cause and will continue to assist passengers to the full extent of its abilities. Passengers who have already flown a leg of their journey and who are scheduled to fly with a Grupo Mexicana airline after Saturday, August 28, 2010 are advised to consult the websites or contact us at the numbers listed below. Priority will be given to minors traveling unaccompanied, passengers traveling with children under age 3 and special needs passengers. 3. If you have not yet begun your journey, we recommend you make alternative travel arrangements. 4. For information on how to apply for a refund, visit www.mexicana.com or www.cmainforma.com or contact us at any of the numbers listed below: Mexico City 5448-8634 5998-5998 Elsewhere in Mexico 01 800 837 6150 01 800 801 2010 United States and Canada 1 877 801 2010 1 888 882 9994

17 Aug, 2010

Kiss Flights & Flight Options collapse
News reports state that London-based travel company Flight Options Limited, trading principally as Kiss Flights, ceased trading this evening, and the Civil Aviation Authority (CAA) has stepped in to protect holidaymakers. The CAA estimates that around 13,000 people are currently overseas – all of them will be able to complete their holidays and return to the UK due to the CAA’s ATOL protection. Around 60,000 people have forward bookings with the company and should be able to claim a full refund for the ATOL-protected elements of their holiday from the CAA. Because the company has failed at the height of summer, the CAA is also putting in place arrangements to allow people to travel out on their holidays for the next 24 hours, to minimise confusion and protect passengers. Flight Options sold charter flights to Mediterranean destinations, under ATOL 4233 mainly through travel agents. The CAA will be arranging repatriation for all Flight Options customers in line with the scheduled end of their holiday. For further information visit: http://www.caa.co.uk/application.aspx?catid=14&pagetype=65&appid=7&newstype=n&mode=detail&nid=1909

11 Aug, 2010

Theme Park Tickets Direct goes bust
News reports state that ThemeParkTicketsDirect.com, based in central London, ceased trading this week meaning it will not dispatch any more tickets. It was an agent for attractions worldwide but was particularly popular for those booking Disney days out. The news will be a particular blow to families with theme park plans during what is now the peak summer holiday period. However, those who booked tickets that cost over £100 on a credit card, or on a Visa card for any amount, should urgently try and claim a refund.

30 Jul, 2010

Grupo Mexicana de Aviacion critical financial situation
News reports state Grupo Mexicana de Aviacion, Mexico’s biggest airline by passengers, said its financial situation is “critical” and the company will present shareholders with proposals to keep the carrier operating. Executives and investors held an extraordinary meeting today in Mexico City to review the airline’s “difficult” financial circumstances, and couldn’t decide on whether to file for bankruptcy, said Adolfo Crespo, a Mexicana spokesman. “The company is analyzing all options and resources,” said Crespo said, who declined to elaborate on the airline’s finances. Mexico City-based Grupo Posadas SAB bought Mexicana from the government in 2005. The discussions came a day after lessor Air Canada seized two planes in what Mexicana called a misunderstanding. Mexico City’s El Universal newspaper reported yesterday that Mexicana told its pilot and flight attendant unions it was considering bankruptcy, a sale to the labor groups or an operational restructuring plan. * Cover is excluded under the terms of all IPP's policies for cover effected or tickets issued on or after 30th July 2010.

20 Jul, 2010

Air Pacific loses big
News reports state that Qantas' hopes to sell its Air Pacific shares have been dampened as the Fijian carrier announced last financial year as the worst in its history. Air Pacific reported last week a net loss of FJD65.3 million for the year to March, a marked contrast to the FJD12.5 million loss from a year earlier. "While much of the 2009/10 losses were due to lower fares caused by increased competition, the impact of the global financial crisis and fuel hedging losses, last year's results are clearly unacceptable," Air Pacific chief executive Dave Pflieger said.

02 Jun, 2010

Fly Direct placed into liquidation
News reports state that Fly Direct Ltd, a company which heavily marketed direct flights to Wanaka from Christchurch and Wellington for the ski season, has collapsed before it got off the ground. Companies Office records show the company has been placed in liquidation. Damien Grant of Waterstone Insolvency is handling the liquidation. A message on the company's website also advises of the liquidation.

27 May, 2010

Iraqi Airways to be closed following bankruptcy
News reports statet that Iraq has blamed Kuwait for its flag-carrier's failure. The Iraqi government has said it will close the state-owned Iraqi Airways after declaring it bankrupt. Iraq's transportation ministry told reporters the airline would be closed following a damaging dispute with Kuwait over war reparations. Kuwait Airways says the Iraqi flag carrier owes it about $1.2bn for aircraft and plane parts taken during the Iraqi invasion of Kuwait in 1990. All scheduled Iraqi Airways flights have been cancelled.

14 May, 2010

Ghana International Airlines (GIA) shuts down
News reports reaching Asempa News indicate that workers of Ghana International Airlines (GIA) have been asked to go home until further notice. This is the latest after a series of flights were cancelled owing to contractual agreements between GIA and its partners in the United Kingdom and the recent volcanic eruption in the Iceland. The Ghana International Airlines has been in the news in recent times for the bad reasons – it has been grounded on a number of occasions, as well as its former officials been hauled to court for roles they played in managing the airline. There was confusion at the offices of the GIA Friday morning when passengers of the airlines who were billed to travel this week had their flight postponed indefinitely. Sources say passengers threw stones at officials of the airlines. A staff of the GIA who spoke to Asempa News on condition of anonymity said they are yet to be told when to report to work. Meanwhile, an insider tells Asempa News government has taken over the beleaguered airlines. Moreover, the Managing Director of GIA Mrs. Gifty Annan-Myrs is said to have been summoned by the Minister of Transportation Mike Hammah over the latest development. At the time of filing this report, the meeting was underway at the ministry.

13 May, 2010

Cyprus Turkish Airlines faces bankruptcy
News reports state THE NORTH’S Cyprus Turkish Airlines (KTHY), faces possible bankruptcy after the company that maintains its aircraft sent in bailiffs to seize US$12 million worth of outstanding debts. The move came on Monday, when Turkish Technics, a Turkish-based maintenance company linked to the Turkish national carrier Turkish Airlines (THY), called in a long-standing debt, affectively freezing KTHY’s assets.

27 Apr, 2010

Ritz-Carlton hotel at Lake Tahoe goes into default
News reports state that The new Ritz-Carlton luxury hotel at Lake Tahoe has gone into default, the latest sign of trouble for the lake economy and one of its top developers. The default notice is the first step toward possible foreclosure. It was filed against the Northstar-area hotel March 31, about a month after its developer, East West Resort Development of Avon, Colo., put nearly $1 billion worth of Northstar real estate development into bankruptcy reorganization.

22 Apr, 2010

Airline financial pressures due to Volcanic Ash
News reports state that with air traffic beginning to return to normalcy in Europe, airlines are tallying the bill for the six-day disruption in service caused by volcanic ash, with IATA estimating cumulative lost revenue at $1.7 billion. Almost all European airspace was available for commercial flights Wednesday, with more than 75% of scheduled flights expected to take place, the first day more than half had operated since April 14 Air France, for example, confirmed it was able to operate a "nearly" normal flight schedule. The one airline still seriously affected was Finnair owing to heavy concentrations of ash in airspace above southern Finland. IATA said the brunt of the revenue hit was borne by Europe's carriers. British Airways estimated that lost passenger and cargo revenue combined with costs incurred supporting stranded passengers amounted to £15 million ($23 million)-£20 million per day. Ryanair said it expects it lost €6 million ($8.1 million) per day April 15-22. At the peak of cancellations over the weekend and Monday, airlines were losing $400 million in revenue daily, IATA said. DG and CEO Giovanni Bisignani said the airspace closures "impacted 29% of global aviation and affected 1.2 million passengers a day. The scale of the crisis eclipsed 9/11 when US airspace was closed for three days."

14 Mar, 2010

Varsity Express: Baby Branson’s bogus business
News reports state that a young aviation entrepreneur, who styled himself “Baby Branson” when he set up an airline at 19, has admitted his latest venture, which collapsed last week, was based on false claims and little more than thin air. On March 1, Martin Halstead, 23, launched Varsity Express, an airline operating daily return flights between Oxford and Edinburgh. When it came to grief after just a few days, there was widespread sympathy for a plucky young man.

10 Mar, 2010

Additional layoffs ahead as Aer Lingus plunges to loss
News reports state that Aer Lingus Group reported a loss before taxes and exceptional items of €66.2 million ($90.4 million) in 2009, reversed from an €18.8 million profit in 2008, and a quadrupling of its operating loss to €81 million from €20 million.

03 Mar, 2010

Air Slovakia ceases operations
News reports state that Air Slovakia ceased operations Tuesday owing to financial troubles and unpaid debts. It is the third Slovakian airline to shut down in the past six months following SkyEurope Airlines and Seagle Air.

12 Feb, 2010

Blue Wings announces its insolvent, services suspended
News reports state that Blue Wings announced that it was insolvent yesterday, a month after suspending service. The Dusseldorf-based carrier said that "insolvency has become unavoidable since our principal Russian investor [48% shareholder Alexander Lebedev] has not kept his financial promises over the past several months." There is no indication that the carrier may resume flights, and no information was available regarding CEO Jorn Hellwig's effort to purchase Lebedev's stake. Hellwig owns 26% of Blue Wings

05 Feb, 2010

BA makes record losses
News reports state that British Airways posted its worst ever financial performance and scrapped its dividend today as high fuel prices and a collapse in business travel forced the airline into a loss of £401m. BA swung from a record profit last year to its biggest deficit since privatisation in 1987 after it was hit by a near-£3bn fuel bill, the weak pound and the sudden deterioration in its most important market, transatlantic business customers, due to the banking crisis. In a grimly pessimistic set of annual results, Heathrow airport's largest airline declined to offer investors new guidance for this year because of the dire state of the airline market. Willie Walsh, BA's chief executive, confirmed that no upturn was in sight. "I don't think the economic environment will improve. We don't see any signs of recovery, nothing, right across the globe in all the markets we operate in," he told Guardian.co.uk. Shares in the flag carrier fell 6.6% to 152p in early trading as Walsh added that, despite signs of the downturn bottoming out in the US, he saw "no green shoots".

19 Jan, 2010

JAL files for bankruptcy administration
News reports state that Japan Airlines Corp said on Tuesday it had filed for bankruptcy administration with 2.3 trillion yen ($25.4 billion) in debt as of the end of September, as it seeks to revive itself under a state-backed restructuring plan. The Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms, has said it will support the carrier.

23 Dec, 2009

Spanish Air Comet collapses as administrators impound planes
News reports state that Spanish low cost carrier Air Comet has gone bust, cancelling all services and leaving thousands of passengers stranded after all of the airline’s aircraft were impounded by creditors on Tuesday. Air Comet largely operates services out of Madrid to destinations in Latin America including daily services to Argentina Ecuador and Peru, and with its collapse left thousands stranded days before Christmas.

16 Dec, 2009

Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration
News reports state that Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration this evening. Last year the airline, which employs 600 staff, carried more than 1.5m passengers and operated 12,000 flights. A statement is expected soon from PricewaterhouseCoopers, (PWC) which has been appointed as administrator. The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today. Many of those flying with the airline booked online or direct with the company and not through a registered travel agent, leaving them potentially out-of-pocket. Flights booked this way will not be reimbursed, though those who booked with a credit card or had arranged their own insurance may be covered. Ryanair has said it will launch a Flyglobespan "rescue fare" to and from Edinburgh and Prestwick airports for any passengers affected. The Ryanair offer applies to flights into and out of Prestwick to Alicante, Faro, Gran Canaria, Lanzarote, Malaga, Palma and Tenerife, and into and out of Edinburgh to Alicante, Gran Canaria, Lanzarote, Malaga and Tenerife.

10 Dec, 2009

Serbia's Jat Aiways seen facing reform or demise
News reports state that Serbia's state airline Jat Airways is seen having to become more competitive or fade away after the European Union relaxed travel between Belgrade and the bloc, prompting rivals to step up penetration of its home market. After years of bolstering by the government and protection against outside competitors, the stakes have increased dramatically for Jat following the EU's decision allowing Serbs, FYR Macedonians and Montenegrins to travel visa-free to the EU.

27 Nov, 2009

WizzAir suffers €9.5 million in losses
News reports state that the low-cost Budapest-based airline company WizzAir recorded group-level losses of €9.5 million in the business year ended in March 2009, while the company has so far said it is profitable, the business daily Napi Gazdaság reported on Friday, quoting the on-line issue of the Czech newspaper Mlada Fronta Dnes.

15 Nov, 2009

Flyglobespan stave off collapse with last minute cash injection
News reporst state that Flyglobespan, Scotland's biggest airline, is believed to have staved off collapse with a last-ditch cash injection on Friday evening. Administrators were lined up to handle the airline's collapse but directors at Globespan Group managed to secure new funding at the 11th hour. But it is not known whether the additional cash has secured the long-term future of the airline. It's believed that the Civil Aviation Authority, the industry regulator, was informed about the possible collapse of "an airline". Contingency plans to repatriate thousands of passengers who would have been left stranded by a collapse are thought to have been drafted. The troubled group also operates baggage and check-in facilities for rival budget airline FlyBe at Glasgow and Edinburgh airports. And last year the company won contracts from the Ministry of Defence to fly to the

06 Nov, 2009

British Aiways record £292 million loss
News reports state British Airways has plunged to a record pre-tax loss of £292m over the past six months, traditionally its most profitable trading period, as the airline fights to stave off Christmas strike action that will deepen its financial woes. British Airways chief executive, Willie Walsh, warned BA's 38,690 staff that the airline's worst first half results since privatisation made further cost reductions "essential".

09 Oct, 2009

Kingfisher yet to settle fuel dues with BPCL
News reports state that - The state-owned Bharat Petroleum Corporation (BPCL) and the Vijay Mallya-controlled Kingfisher Airlines have not been able to reach common ground on the settling of dues that Kingfisher owes to the oil marketing company. Kingfisher counsel Navroz Seervai disputing the claim of insolvency, argued that the airline was paying about Rs 130 crore to another petroleum major for the monthly supplies. He also said the airline could not pay anything more than Rs 10 crore a month, bringing to the court’s notice that in view of the economic downturn, all major airlines were going through a bad patch

28 Sep, 2009

Japan minister says JAL won't be liquidated
News reports state that Japan's transport minister said Sunday he will not force the struggling Japan Airlines, Asia's biggest airline, into bankruptcy. "We will not crush and liquidate (the airline)," Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show. "It's just impossible." A team of government-appointed corporate turnaround experts was set up Friday to create a restructuring plan for the airline, whose own draft reconstruction plan Maehara called "insufficient." The team will make a recommendation to the transport minister by late October or early November. Officials from the airline and the transport ministry were not available for comment Sunday. The airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June, and has forecast a net loss of 63 billion yen ($701 million) for the current fiscal year to March 2010. JAL was privatized in 1987. JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen ($668 million) in loans from the government-owned Development Bank of Japan in June. In his meeting Thursday with the transport minister, JAL President Haruka Nishimatsu revealed that the airline is short 450 billion yen ($5 billion) through March 2011, money that is needed for debt repayment, according to media reports. Nishimatsu reportedly told Maehara that JAL was planning to cover part of the payment by selling off its in-flight meal catering unit and reviewing company pension plans. JAL's original restructuring scheme also included 6,800 job cuts, or around 14 percent of its workers. The airline has reportedly been in talks on financial tie-ups with several top airlines including Delta Air Lines Inc., the world's biggest airline operator, its rival American Airlines Inc. and Air France-KLM, Europe's biggest airline group.

25 Sep, 2009

JAL (Japan Airlines) on the brink of collapse
News reports state that Japan Airlines is teetering on the brink of collapse as the government refused calls to save it from a $15 billion debt pile yesterday (September 24). A Japanese government task force has now been formed which may split the carrier into “good” and “bad” parts. It will report back at the end of November. The request for the bail out was made by JAL president Haruka Nishimatsu at a meeting with Japan’s new transport minister, Seiji Maehara, as reported yesterday.

02 Sep, 2009

IATA: Second-quarter losses plunge past $2 billion
News reports state that IATA said 54 airlines that have reported second-quarter financial results have lost a combined $2.02 billion, a figure signifying a "further deterioration" the organization said is troubling considering that carriers "usually make 50% of their profits in this seasonally strong quarter." The reporting carriers lost $926 million in the year-ago period and approximately $4 billion in the 2009 first quarter, IATA said in an Airlines Financial Monitor released yesterday. The industry's second-quarter operating loss of $468 million compared to a $2.3 billion profit in the 2008 second quarter. Twenty North American airlines lost a combed $134 million last quarter, narrowed 68% from $419 million in the year-ago period. Twelve European carriers suffered a $1.1 billion loss, reversed from a $439 million profit, while 16 Asia/Pacific airlines lost $1.29 billion, widened 34.7% year-over-year.

01 Sep, 2009

SkyEurope collapses, thousands stranded abroad
News reports state that Slovakia-based no-frills airline SkyEurope has suspended all its operations because of what it described as a “lack of suffucient interim funding”.The airline has been in bankruptcy protection since June but said it had found investors to secure its future.However, it suspended all flights earlier today, and trading in its shares was suspended on the Vienna stock market. SkyEurope one of Europe's largest airlines flew mainly in eastern Europe but operated five routes from Luton, including Vienna and Prague.

30 Jun, 2009

Airlines being financially squeezed
News reporst state that the world's airlines lost more than $3 billion in the first quarter of 2009, the International Air Transport Association (IATA) said on Tuesday, maintaining its estimate for full-year losses of $9 billion. In its latest snapshot on the industry, the Geneva-based lobby said weak travel demand and lower freight volumes in the global recession had bled revenues for major carriers, in "a significant deterioration from last year." "This deterioration was before the recent rise in fuel prices," IATA said, warning the 30 percent increase in oil and jet fuel prices since early May would squeeze airline cash flows further in coming months.

22 Jun, 2009

Lufthansa's financial outlook deteriorates
News reports state that Lufthansa's forecast of a "distinctly positive" full-year operating profit is in jeopardy, it said Friday, and it now is focused on "avert[ing] an operating loss in the current financial year." Chairman and CEO Wolfgang Mayrhuber confirmed two weeks ago that the company expected a 10% drop in passengers and a 20% fall in revenue this year. It reported a €256 million first-quarter net loss and a €44 million deficit on the operating level.

21 Jun, 2009

JAL looks set for $1 billion government loan
News reports state that the Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said. Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.

02 Jun, 2009

British Airways Faces 'Fight For Survival' Says CEO
News reports state that British Airways is facing a "fight for survival," its chief executive said. "It's critical that we all recognize that the diagnosis for our airline is now critical," Willie Walsh wrote in the airline's staff newspaper. He said the crisis facing the aviation industry "has never been more serious." "There has been a significant shift in consumer attitude, with people wanting more and paying less. And things are getting worse. We haven't yet reached the bottom and everything points towards a protracted downturn," he said. Walsh said some areas of the business had made progress on pay and productivity negotiations but elsewhere change "has been slow."

20 May, 2009

Travel plans in disarray as OzJet grounded
News reports state that Passengers at Perth Airport are furious after their travel plans were thrown into disarray today. The effective grounding of OzJet’s operations in Perth over unpaid airport charges has affected thousands of Bali holiday makers. The grounding of the airline, which operates to Derby and twice weekly Bali charters for IndoJet, is due to unpaid airport charges. Perth Airport chief executive Brad Geatches told thewest.com.au that it would not process its passengers because the airport was owed more than $200,000 in back payments.

15 May, 2009

Air Fiji closed down
News reports state that the government and the representatives of the Tuvalu government are yet to meet to discuss the future of Air Fiji Limited which has closed all its offices in the country. The Tuvalu government which has 51% shares in Air Fiji has not given any reason for the closure of Air Fiji and has said that its representatives will meet with the Fiji government to discuss the matter. * In conjunction with the terms of our policy cover is therefore excluded for this airline with immediate effect

17 Mar, 2009

SkyAirWorld collapses
News reports state that collapsed Australian regional carrier SkyAirWorld looks unlikely to return to the skies without a major cash injection from an angle investor. The airline ceased operations after its five leased Embraer jets were repossessed back on Friday, March 13. It reportedly owes $10 million in payments. Liquidators have been appointed, PA Lucas & Co, and they are assessing the unlikely potential for the carrier to continue trading. ** Under the terms of IPP's policies, cover is excluded for policies or tickets boughts on or after 13th March 2009.

17 Mar, 2009

East Star suspends operations
News reports state that East Star suspends operations as CNAC sale falls through. East Star Airlines was forced to suspend operations Sunday by CAAC owing to its heavy debt burden and the collapse of a stake sale deal with Air China parent CNAC. It is the second privately held Chinese carrier to suspend service in recent months. Okay Airways stopped flying in December but resumed operations the following month. Wuhan-based East Star has been in financial crisis since last year. ** Under the terms of IPP's policies cover is excluded with immediate effect for policies or tickets bought from 15th March 2009

30 Jan, 2009

Australia's MacAir leaves passengers stranded
News reports state MacAir's sudden move into receivership has meant thousands of its passengers are now left stranded. All of today's flights were suspended, says an official at MacAir who wishes to remain anonymous. She says the airline is offering passengers a full refund on tickets. The official was unable to say when flights will resume because the carrier is now in administration and receivership. MacAir late yesterday appointed Jonathan McLeod as administrator. He is principal of Brisbane-based corporate restructuring and insolvency firm McLeod & Partners. One of the airline's largest creditors, Australian banking giant Suncorp-Metway, also earlier today appointed Justin Walsh as receiver and manager. He is from the Brisbane office of accounting firm Ernst & Young. The state's transport minister John Mickel says in a statement today that it was the receiver that grounded the airline's entire fleet. He says: "The director-general of Queensland Transport met today with the receivers ...and the receiver advised that it would seek to have flights resume as soon as possible". ** Under the terms of IPP's insurance policies cover is excluded for policies or tickets bought from today

25 Jan, 2009

Nordic Airways looses license due to financial problems
News reports state that Nordic Airways, a Stockholm-based airline that launched its first commercial flights between western Europe and Baghdad earlier this month, has had its operating license revoked due to financial troubles, a Swedish Transport Agency official said Saturday. Agency spokesman Anders Lundblad said the license was pulled Friday after the Stockholm County Court rejected the company's request for an extension to restructure itself. Lundblad said passengers could be stranded because the fleet was grounded with immediate effect. "It's very possible, since they can't fly back with them," he said. Nordic Airway officials did not immediately return calls seeking comment. In its decision, the agency cited the airline's ailing finances, saying it could "no longer fulfill its commitments and obligations toward its passengers." Nordic Airways launched its Copenhagen-Baghdad route in the beginning of January with flights planned once a week between the Danish and Iraqi capitals. The company had its permanent license replaced with a time-restricted temporary permit in October after it had applied for reconstruction due to financial difficulties. That license was due to expire on Feb. 15.

17 Jan, 2009

FlyLAL grounded stranding passengers
News reports stat that Lithuania's national carrier, FlyLAL-Lithuanian Airlines, had its operating certificate revoked Friday over fears that its financial troubles could affect flight safety. As a result of the move, which was announced by the Lithuanian Civil Aviation Administration (LCAA), all FlyLAL-Lithuanian Airlines flights will be grounded indefinitely from Saturday. 'The certificate has been suspended due to the poor financial condition of FlyLAL,' said Kestutis Auryla of the LCAA. Under the terms of IPP policies cover is no longer available for insurance or tickets issued with immediate effect

11 Jan, 2009

Zambian Airways suspends operations
News reports state that Zambia's privately-owned carrier Zambian Airways said on Saturday it had suspended operations with immediate effect, citing high fuel costs over the last year-and-a-half and the need to restructure its operations. The airline said in a notice to passengers at Lusaka airport that it had experienced difficulties after jet fuel rose 100 percent in the last 18 months, increasing its operational costs by 50 percent. "This created a lot of problems for Zambian Airways as a growing business. In the interest of our stakeholders and our employees, we have decided with immediate effect to suspend all our operations until further notice," it said. Dozens of passengers flying to South Africa were left stranded, eye witnesses said.

09 Dec, 2008

Advantage Rent A Car files for bankruptcy
News reports state that Advantage Rent A Car has filed for reorganization under Chapter 11 in the bankruptcy court of Minnesota. The San Antonio, Texas-based company said it is exploring options such as reorganization, a sale or a merger. As a result of financial strain, Advantage said that it is immediately consolidating its network of rental locations to focus efforts on the most profitable, highest volume sites. * Under the terms of the ProtectMyHoliday policy cover will be excluded for this company in respect of policies issued from 9th December 2008

05 Dec, 2008

Flightline collapses
News reports state that Flightline Ltd, the Southend airport-based airline, went into administration yesterday.

10 Nov, 2008

Alma de Mexico Airlines files for Bankruptcy
News reports state that Alma de Mexico suspended operations and filed for bankruptcy last Friday, citing the "crisis" in the industry and global economy.

29 Oct, 2008

Sterling European Airlines to File for Bankruptcy Protection Today
News reports state that Sterling Airlines A/S will file for bankruptcy today after its Icelandic owner ran out of capital to support the business and after the company was unable to enter a deal to divest itself. ``Negotiations have been conducted with several potential investors, but it was impossible to make ends meet,'' the company said in a statement on its Web site today. ``The inevitable result is that Sterling Airlines has no option but to file for bankruptcy.'' Sterling's owner Palmi Haraldsson had sought to find a partner for the airline, after rising fuel costs and less demand for air travel reduced the company's profitability. Haraldsson's plans to inject enough capital in the company to keep it liquid until 2009 were undermined by the collapse of the Icelandic financial system, Sterling said. Iceland on Oct. 24 secured a $2.1 billion loan from the International Monetary Fund. ``Over a three- to four-week period, the whole financial system melted down, and that resulted in our shareholder being unable to continue his support to the company,'' Sterling said. Sterling customers who bought their tickets on the company's Web site won't be refunded, according to the statement.

17 Oct, 2008

Lte International Airways ceases operations
Their website staets "Lte International Airways S.A. wish to inform you that due to the financial situation of the company, that make it difficult to meet the operational expenses in the next days, we have had to suspend our charter and scheduled operations. Lte is doing everything to minimize the impact of this suspension of services on its clients and providers. After 20 years operating with maximum dedication to our clients it just was not possible to avoid this situation given world events lately. We apologize for the inconvenience this may cause to our passengers, clients and suppliers. Lte International Airways S.A."

01 Oct, 2008

AIRUnion shuts down
News reports state that AiRUnion, the failed Russian airline alliance that comprised five carriers, ceased to exist Tuesday as the management company shut down. The Russian government intended to replace AiRUnion with a state-owned grouping of nine airlines, but AiRUnion COO Gustav Baldauf said that "we are still working on a concept for a follow-up company" and that decisions on how the replacement alliance would function "will take some time." Talks with the government are on hold and Atlant-Soyuz Airlines, the Moscow-owned carrier that was supposed to take over AiRUnion's flights, still is awaiting certification to do so.

19 Sep, 2008

Alitalia 'on the edge of an abyss'
News reports state that Berlusconi: Alitalia 'on the edge of an abyss' after CAI withdraws rescue offer. Alitalia's future is in serious doubt after Italian investment group CAI yesterday withdrew its €1 billion ($1.4 billion) offer to rescue the airline. "I received confirmation from CAI that it has withdrawn its offer," Prime Minister Silvio Berlusconi told reporters. "We could be on the edge of an abyss." He previously had warned AZ's workers that there was "no alternative" to CAI's plan and all 20,000 employees would lose their jobs if talks between labor and the investment consortium collapsed. Six of the carrier's nine unions, including pilots and flight attendants, refused to accept concessions contained in the CAI proposal. A deadline set by the consortium passed yesterday without labor groups' agreement to the rescue plan and CAI issued a statement saying its members had "unanimously" voted to withdraw their offer. While the airline's aircraft were expected to fly today, AZ Administrator Augusto Fantozzi said earlier this week that money needed to keep the airline operating was "about to run out."

17 Sep, 2008

Olympic Airways to shut down
News reports state that Olympic Airlines will be shut down and restarted as Pantheon Airways early next year pending European Commission approval of a Greek government plan to rescue the loss-making carrier. Under the plan, Pantheon would be privatized, likely including foreign investment. It would continue operating Olympic's domestic network but would cut back international routes and be about 65% of Olympic's size. Several thousand jobs would be eliminated. Greek Minister of Transport Kostas Chatzidakis said OA is one of Europe's worst performing companies and cannot continue in its current form.

12 Sep, 2008

XL Travel Group (XL Airways) Bust - Thousands Stranded
News reporst state that XL Leisure Group Plc, the U.K.'s third largest tour operator, went into administration early today, leaving tens of thousands of passengers stranded, with the company blaming rising fuel costs and the economic slowdown. The U.K.'s Civil Aviation Administration said as many as 89,000 people could be stranded overseas with another 200,000 holding advanced bookings with the privately held company and its units. XL Leisure, XL Airways UK Ltd., Excel Aviation Ltd., Explorer House Ltd., Aspire Holidays Ltd., Freedom Flights Ltd., Freedom Flights (Aviation) Ltd., The Really Great Holiday Company Plc, Medlife Hotels Ltd., Travel City Flights Ltd. and Kosmar Villa Holidays Plc are all in administration, XL said in a statement on its Web site this morning. ``The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding,'' XL said in the statement.

29 Aug, 2008

Alitalia board OKs bankruptcy protection
News reports state that Alitalia's board on Friday formalised a request to seek bankruptcy protection, Corrado Passera, the CEO of the stricken carrier's sale adviser Intesa Sanpaolo said.

29 Aug, 2008

Airline collapse hits thousands
News reports state that hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom. The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.

22 Aug, 2008

AiRUnion - financial problems impact operations
News reports state that Russian airline alliance AiRUnion is facing significant financial troubles and having trouble paying its bills, to the point where aircraft at Moscow Domodedovo, which controls fuel distribution, are not being fueled on time.

21 Aug, 2008

IATA's Bisignani: 'We are in the perfect storm'
News reports state that "We are a fragile industry and we are in crisis; wait and see is no longer an option," was yesterday's assessment from IATA DG and CEO Giovanni Bisignani, who was addressing the Australian National Aviation Press Club in Sydney. He claimed that despite the recent reduction in oil prices, commercial aviation remains in need of assistance. "We are in the perfect storm of uncontrollable fuel costs and falling demand. Airlines could lose as much as $6.1 billion this year. Already 25 airlines in our financial system have gone bust--greater than immediately following 9/11--and we are bracing for more," he told the gathering.

01 Aug, 2008

BA Chief warns "airlines will go bust"
News reports state that more airlines will go bankrupt this year as rising fuel costs and weak consumer confidence ravage the industry, the chief executive of British Airways warned today. Willie Walsh said carriers that struggled to make a profit during the recent sales boom will not survive the "worst ever" trading environment the industry has seen. The downturn has put 25 airlines out of business this year, including Luton-based business carrier Silverjet. "You are going to see more airlines go bust. If you look around there are a lot of airlines out there that have not been profitable in the past few years. Those guys will not survive," he said.

28 Jul, 2008

Trade Winds Airlines files for Chapter 11
News reports state that TradeWinds Airlines announced Monday that it has filed for Chapter 11 bankruptcy protection, citing "a perfect storm" of adverse market conditions and what it called failed financial commitments.

25 Jul, 2008

Aerocalifornia services suspended
News reports state that Aerocalifornia was suspended again by the Ministry of transport and communicatios of Mexico on 23 July 2008 because of unpayed debts the airline has with airports with a sum of USD$25,900,000. The ministry said they will allow the airline to fly again when the money is paid.

17 Jul, 2008

Report Predicts Airline Bankruptcies, Liquidation in 2009
News reports state that a report released Tuesday by Fitch Ratings on the country's top airlines states that numerous layoffs, grounded flights and ­price increases, in addition to various cost-cutting measures, may not be enough to aid the struggling airline industry from the escalating effects of high oil prices, CNN reports. The report warns that record fuel costs, as well as meager cash flow, may instigate "multiple bankruptcies and liquidation" for major U.S. airlines in 2009 and that recent economic changes by carriers "are not sufficient to counter the devastating impact of jet fuel prices."

12 Jul, 2008

Airline stocks in tailspin over new record-high oil price
News reports state that a new record high for benchmark oil prices sent airline shares spiraling downward. At last check, the Amex Airline Index had shed 3.4% to 14.31 points with all of its 14 components trading down. Crude for August delivery was up $4.85 to $146.50 a barrel on the New York Mercantile Exchange. Earlier it rallied to an all-time high of $146.90 a barrel in electronic trading on Globex. Network carriers were plunging.

11 Jun, 2008

Oil costs will push some Asian airlines under: analysts
News reports state that Record-high oil prices have sparked the biggest crisis in the Asian airline industry since the SARS scare, and analysts say some carriers are likely to go under if prices do not let up soon.

30 May, 2008

ALMOST 10,000 PASSENGERS HIT BY SILVERJET GROUNDING
New reports state that almost 10,000 passengers have been affected by Silverjet ceasing operations this morning. The Civil Aviation Authority estimates that 7,000 UK and 2,500 overseas passengers have bookings with the business class carrier.

09 May, 2008

EuroManx stops flying
EuroMax Airlines website stated today "It is with great regret that EuroManx have announced today that the company is ceasing operations forthwith with no further flights being operated." News reports state that Euromanx went out of business blaming fuel prices and falling passenger numbers.

04 May, 2008

Sri Lanka's budget airline grounded
News reports state that Sri Lanka's state-run budget carrier has suspended operations indefinitely because of a lack of planes, an aviation official said Sunday. The budget airline, Mihin Lanka, has been dogged with financial trouble since it began commercial operations last April.

29 Apr, 2008

Nationwide Airlines ceases all flights due to critical cash flow
Nationwide Airlines announced today that they have ceased all flight operations due to critical cash flow following grounding of their aircraft earlier in the year and 30% increased in fuel costs.

27 Apr, 2008

Eos Airlines Files For Bankruptcy
News reports state that Premium class New York to London carrier Eos Airlines on Saturday said it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The company said it could not close on an investment that would have carried it to corporate profitability in 2009. The petition was filed April 26 in the U.S. Bankruptcy Court in the Southern District of New York. Eos will immediately reduce its workforce, eliminating most of its positions. The carrier will cease operations entirely after April 27.

11 Apr, 2008

Frontier Airlines files for Chapter 11 bankruptcy
News reports state that Frontier Airlines filed for Chapter 11 bankruptcy late Thursday in Manhattan.

10 Apr, 2008

Swazi Express Airways close operations
News reports state that Managing Director Hans Steffan, addressing a press conference at the company premises here yesterday, said operations came to a halt on Friday. Steffan, 39, said he had invested over E10 million into the 12-year old company."Swazi Express Airways has ceased to operate due to unfair competition from the government," he said.

10 Apr, 2008

More than 30,000 passengers hit by Oasis Airlines closure
News reports state that more than 30,000 passengers holding tickets valued at 300 million Hong Kong dollars (38.5 million US dollars) have been affected by the collapse of Hong Kong's first long-haul budget airline, Oasis, travel industry officials said Thursday. The airline, which offered fares of as little as 1,000 Hong Kong dollars between London and Hong Kong, suspended all flights Wednesday after going into voluntary liquidation.

05 Apr, 2008

Skybus folds
News reports state that Columbus-based airline blames high fuel prices, weak economy -- Surprised fliers find themselves stranded without notice -- 450 lose jobs; failure dims growth prospects for Port Columbus

04 Apr, 2008

ATA Airlines shuts down
News reports state that ATA Airlines, an independent carrier based in Indianapolis, shut down operations yesterday after filing for Chapter 11 bankruptcy protection Wednesday.

30 Mar, 2008

Aloha Airlines Halting Passenger Service
News reports state that Aloha Airlines said Sunday it will halt all passenger service after Monday, signaling the end of an airline that has served Hawaii for more than 60 years. Aloha, which filed for bankruptcy for Chapter 11 bankruptcy protection on March 20, was a casualty of fierce competition and rising fuel prices. The airline said it will stop taking reservations for flights after Monday.

19 Mar, 2008

Low cost Indonesian airline Adam Air to be shut down
News reports state that Indonesian low-cost carrier Adam Air will no longer be allowed to fly, Indonesian officials said.

31 Jan, 2008

Travel misery after airline closure - City Star Airlines
Travel misery after airline closure News reports state that Passengers are facing misery after an airline shut down following financial difficulties. Aberdeen based City Star Airlines on Wednesday said it would cease operations from midnight. The announcement came after one of the company's planes was impounded at Aberdeen Airport by BAA on Wednesday.

23 Jan, 2008

Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights
News reports statte that Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights, saying it had been stunned by unexpected and unsustainable fourth-quarter losses. Coast Air was Norway's fourth-largest airline, after SAS Norway, Norwegian Air Shuttle and Wideroe.

18 Jan, 2008

Air Mauritanie liquidated
News reports state that court orderes Air Mauritanie to liquidate assets following ongoing financial crisis. The Mauritanian court ordered Air Mauritanie liquidate its assets following a financial crisis that has plagued the national air carrier for years, a judicial source said Friday.

26 Dec, 2007

Big Sky Shuts Down Nationwide Operations
News reports state that the airline announced they are ceasing operations nationwide. The Montana-based airline said they could not make a profit. A spokesperson for the company said that Big Sky is not bankrupt and that all shareholders will be paid. The airline plans to liquidate its assets as quickly as possible.

25 Dec, 2007

Maxjet Airways files for bankruptcy protection
News reports state that Maxjet Airways threw itself onto bankruptcy protection Monday as soaring costs, stiff competition and a deteriorating credit market scuttled the fledgling airline's bid to carve out a niche for itself by catering exclusively to business-class passengers in the trans-Atlantic market.

22 Dec, 2007

FlyWhoosh grounded
News reports state that troubled airine flyWhoosh finally admitted yesterday that its Dundee services have been grounded for good.