01 Dec, 2016
Tiara Air declared bankrupt
News reports state that Tiara Air has been declared bankrupt.
23 Nov, 2016
TransAsia Airways shuts down
News reports state that TransAsia Airways, the Taiwan-based airline that had two fatal crashes within seven months of each other, said in a stock exchange filing on Tuesday that it was shutting down.
Its shares and flights had been suspended since Monday.
The company has continuously lost money, and its shares have been sliding since the crashes in 2014 and 2015 raised questions about the safety of its planes.
In July 2014, one of its planes hit a building while landing in stormy weather in the Penghu Islands, about 30 miles west of Taiwan’s main island. Forty-eight people were killed.
Another plane crashed into the Keelung River in Taiwan in February 2015, killing at least 35 people. The pilot of that plane acknowledged later that he had shut off the wrong engine, according to a report on the crash. The report also said that he had failed a simulator test the previous year but passed a makeup exam.
16 Nov, 2016
Mango Airlines makes a loss
News reports state that Cape Town – Domestic low-cost carrier Mango Airlines has officially celebrated its 10th birthday on Tuesday as its financial statements have been released to parliament.
According to an exclusive report published by Fin24, the low-cost airline, which is 100% owned by state airline South African Airways - has made a net loss of R36.9m in the year ended March 2016.
Fin24 was given a copy of Mango’s 2014/15 and 2015/16 annual financial results on Tuesday, after South African Airways (SAA) chairperson Dudu Myeni was requested to hand over various documents to the Standing Committee on Finance by the Department of Finance. It is the second time in 10 years that the celebrated airline has not made a profit.
15 Nov, 2016
Nok Air losses in a tailspin
News reports state Nok Air slipped further into the red in the third quarter with a net loss of 1.07 billion baht, widening from a 652.62-million-baht loss in the same period last year. The result brought cumulative losses...
13 Nov, 2016
Air Berlin losses mount
New reports state that Air Berlin plc(AIBEF.PK) reported that net result for the third quarter of 2016 was negative 45.6 million euros compared to positive 56.2 million euros in the third quarter in 2015. Loss per share was 0.45 euros compared to earnings per share of 0.17 euros in the prior year.
Pre-tax loss were 45.8 million euros compared to Pre-tax earnings of 60.5 million euros in the same quarter of the previous financial year.
The operating result or EBIT amounted to negative 17.3 million euros compared to positive 81.4 million euros in the prior year.
EBITDAR decreased to 164.3 million euros from 256.1 million euros in the prior year.
The financial result amounted to negative 28.7 million euros compared to negative 20.9 million euros in the same quarter of previous financial year.
Group revenue for the quarter declined to 1.23 billion euros from 1.30 billion euros in the prior year.
11 Nov, 2016
Turkish Airlines loss
News reports state that Turkish Airlines reported a net loss of $463 million for the first nine months of the year compared to a net profit of $877 million a year ago.
In a statement the Turkish flag carrier blamed political and economic instability in Europe and Middle East as well as the increased perception of global and regional risks which caused negative impact on aviation demand and placed pressure on yields. Moreover, increased capacity, led by low fuel prices and increased competition, also affected ticket prices and total revenue.
Only Africa and the USA maintained revenue levels for both passenger and cargo traffic
During the nine-month period, the carrier transported 48.3 million passengers, up 4%, on 357,000 flights. ASKs increased 14%; RPKs were up 8.2% and load factor was down to 74.5% from 79% last year.
02 Nov, 2016
Virgin Australia losses widen
News reports state that Virgin Australia, like Qantas, is being hit by weak demand for domestic airline seats.
The airline today posted an underlying loss before tax of $3.6 million for the first quarter of the financial year, a fall of $12.1 million on the same period the year before.
The statutory loss after tax for the quarter was $34.6 million. This includes the impact of restructuring charges.
A short time ago, Virgin shares were down 2% to $0.235.
“This result was impacted by subdued industry trading conditions during the quarter, particularly in the domestic market, which affected revenue,” the airline said in a quarterly update.
03 Oct, 2016
News reports state that South African Airlines (SAA) has reported a loss of R5.6 billion for the financial year of 2014/2015 and a further R1.5 billion for 2015/2016.
SAA Chairperson Dudu Myeni was briefing the media after releasing the airline's financial statements. She says the state-owned carrier needs "urgent and radical" action if it is to return to profitability.
This would require aggressive cost containment and reviewing flight routes. She says the new board appointed in September together with other senior executive members of SAA are doing everything possible to make the airliner financially stable.
She says they are also looking to stabilise the liquidity position of the SAA.
"While there is still a great deal of work to be done, the board the shareholder and management are committed to doing everything possible to return the airline to financial sustainability. Although the airliner has reduced its losses. The board recognises on the issue of reporting losses cannot persist and radical actions are required."
29 Sep, 2016
Air Berlin in financial peril and cut backs take place
News reports state that Etihad, which owns 29 percent of Air Berlin, may have finally decided it no longer wants to subsidize mounting losses. If this deal happens, Air Berlin will still be around, but at a more manageable size.
21 Sep, 2016
Seaport Airlines goes into liquidation
News reports state that Seaport Airlines has ceased all operations after filing for bankruptcy.
The Portland-based company operated out of Memphis' Signature Flight Support and offered service to the cities of Hot Springs and Harrison, Arkansas.
Customers who have a ticket from the airline can apply for a refund through the credit card company.
Scott Brockman, President and CEO of the Memphis-Shelby County Airport Authority, said, “All air service is important to our operations at MEM, and we will work to assist these affected cities to maintain their connection to Memphis and the Mid-South.”
20 Sep, 2016
Shares tumble as losses continue in FastJet
News reports state that shares in budget airline Fastjet slumped this morning after it reported deepening losses and a heavily eroded cash pile after its ambitious drive to fly more planes failed to pay off.
The Africa-focused airline reported operating losses for the first half of this year of $31m, almost three times as high as its $12.8m loss in the same months last year. As a result the company swung from a modest pre-tax profit of $6.4m in the first half of 2015 to a loss of $15m for the first six months of this year.
The stock plummeted more than 17pc to 20.95p following the company's results.
The deepening losses have raised concern over Fastjet's cash position, which has plummeted from $71m in June last year to $3.9m by the end of the first half of 2016. The company has since raised a further $20m to give itself more headroom.
Gerald Khoo, an analyst with Liberum, said: “Challenging economic conditions in Tanzania and overly ambitious capacity growth resulted in a collapse in load factors. Neither passenger numbers nor revenue kept pace with the additions to seat capacity, and losses have grown.”
14 Sep, 2016
SAA 4.7 Billion loss
The results confirm statements from finance minister Pravin Gordhan earlier in the week, saying that the airline suffered a R4.7 billion loss in the year. According to Gordhan, the airline faces another R1.8 billion loss in the 2015/16 period.
The airline has been making a loss since 2012, with the last available results, from 2013/14 showing the group post a loss of R2.59 billion. The airline has accrued losses of over R18 billion over the past 10 years.
SAA has also received a number of government bailouts worth at least R14.4 billion over the past 5 years, as part of its turnaround strategy, but was blocked from receiving further grants by Gordhan until a new board was established.
Earlier in the month, a new SAA board was elected, with president Jacob Zuma’s friend, Dudu Myeni still at the helm – which was followed by National Treasury granting the airline another R5 billion guarantee with strict conditions.
The results tabled before parliament are only the preliminary results for SAA. According to the finance minister, the auditors of the report raised a number of technical issues, which need to be reviewed by technical experts before the results can be finalised.
Revenue for the group was down to R28.5 billion from R28.7 billion previously, while operating expenses were up to R31.6 billion from R30.6 billion in 2014.
05 Sep, 2016
SAFI Airways grounded due to debts
News reports state that Afghanistan's largest private airline has been forced to suspend operations after it failed to clear outstanding debt and taxes.
The Afghan civil aviation authority ordered Safi Airways on Sunday to pay 1.15 billion Afghani ($1.7 million) before it can regain permission to resume services and sell tickets.
"The finance ministry decided to suspend Safi Airways activities in Afghanistan," the Independent Directorate of Civil Aviation said. It added that authorities can also stop the company's executives from travelling outside Afghanistan.
The finance ministry has allowed the tax office to seek court approval to confiscate and sell Safi Airways property if it fails to meet the payment deadline.
The airline, which was founded in 2006, currently flies three domestic and four international routes. It is the country's second-largest airline after national carrier Ariana Afghan Airlines.
01 Sep, 2016
Aero suspends services indefinitely
After months of skeletal operations which saw the airline’s schedules shrinking to a very low ebb, Nigeria’s 2nd biggest indigenous airline, Aero Contractors, yesterday announced the suspension of its scheduled services with effect from today, September 1.
The Chief Executive Officer of the airline, Capt. Fola Akinkuotu, said the development was part of the strategic business realignment to re position the airline and return it to profitability.
The suspension of the airline’s services was the culmination of its seemingly unending operational woes which necessitated its take-over by the Assets Management Corporation of Nigeria (AMCON).
Despite AMCON’s intervention in February and the appointment of a Receiver-Manager, Mr. Tunde Gbenro and then Capt. Akinkuotu, the airline owned by the Alex Ibru family could not rise on its feet as its operations continued to shrink.
Aero recently suspended its operation to Accra, Ghana, a decision it attributed to unavailability of aircraft.
However, the airline announced outright suspension of scheduled services with effect from today. It has asked the affected staff to proceed on leave of absence indefinitely.
23 Aug, 2016
Turkish Airlines first half loss of $644 million
News reports state that Turkish Airlines has said it posted a loss of 1.9 billion Turkish Liras ($644.4 million) in the first half of 2016, while also revising its year-end passenger and revenue target, Reuters has reported.
Analysts had already expected the parity losses to hit the company’s balance sheet in the second quarter, as a dramatic decrease in the number of tourist arrivals and rising competitiveness have put airlines’ profitability under pressure.
While Turkish Airlines’ sales in the second quarter rose to 7.1 billion liras ($2.4 billion) from 6.8 billion liras in the same period of 2015, the company suffered a loss of 656 million liras in the second quarter, it stated on Aug. 19. The company posted a net profit of 661 million liras in the same period last year.
The national carrier’s sales revenue rose to 13.5 billion liras ($4.4 billion) in the first half of the year with a 10 percent increase from the same period of 2015, but it also posted a 1.9 billion-lira loss in the same period.
In this vein, Turkish Airlines revised its year-end target to 63.4 million passengers, down from 72.4 million. It also revised its year-end sales revenue target to $9.5 billion, from 12.2 billion, and its EBITDAR margin from 20-22 percent to 12-14 percent.
Turkish Airlines, which had estimated some 12 percent of increase in its total fuel consumption, said its average euro-dollar parity prediction is at about 1.11, its average dollar-lira parity prediction is at 3.00. The cost of jet fuel costs, including hedges, is currently at around $577 per ton, it stated.
17 Aug, 2016
Cathy Pacific profits plunge -
News reports state that Hong Kong-based carrier Cathay Pacific has reported an 82% drop in half-year profits amid fierce competition and the economic slowdown in China.
The airline's net profit in the first half of the year dropped to 353m Hong Kong dollars ($45.5m; £34.9m), down 82% from the same period last year.
Revenue for the six months to 30 June fell 9.2% to HK$45.68bn.
Cathay is facing challenges on many fronts - air fares, competition from other carriers and fuel hedging losses.
The airline attributed the sharp downturn to slower global economic growth dragging down corporate travel and hitting sales of lucrative premium class seats.
13 Aug, 2016
LATAM $92 million second quarter loss
News reports state that LATAM Airlines , Latin America's largest airline, reported a net loss in the second quarter of $92 million, wider both than expected and compared to the same period a year ago.
The airline has racked up repeated losses since it was formed in the 2012 merger of Chile's LAN and Brazil's TAM, hamstrung by Brazil's economic problems and negative currency effects.
10 Aug, 2016
Air Berlin losses widen
New reports state that Air Berlin PLC reported a net result in the second quarter of 2016 of a loss of 89.1 million euros compared to a loss of 37.5 million euros in the corresponding quarter in prior year. Loss per share was 0.82 euros compared to a loss of 0.37 euros. Operating result (EBIT) was a loss of 62.7 million euros compared to a loss of 15.9 million euros, in the prior year's quarter.
Group revenue was 970.6 million euros in the second quarter compared to 1.07 billion euros, in the second quarter of prior year. The Group said capacity cuts and adverse geopolitical events in the competitive European market during the second quarter of 2016 led to the 9.4 percent decrease in sales.
05 Aug, 2016
Virgin Australia posts a $225 Million loss after restructuring
News reports state that Virgin Australia has plunged to a $225 million full-year loss, having bitten the bullet on restructuring its business and fleet.
The vast bulk of the loss comes from $440.5 million in restructuring charges as the airline has sought cost-cutting measures, including the simplifying of different aircraft in its fleet from nine to six.
01 Aug, 2016
Air Pegasus suspends operations
News reports state that regional carrier Air Pegasus has cancelled many of its flights indefinitely. A spokesperson said the flights were cancelled due to "technical" issues and denied the company had suspended operations. Sources, however, said that lessors had taken repossession of some of its aircrafts due to nonpayment of dues.
Despite repeated attempts, Air Pegasus managing director Shyson Thomas was not available for a comment.
Air Pegasus, which has three 72-seater ATR aircrafts, operates out of the Bengaluru airport and connects nine cities in southern India, including Chennai, Mangaluru, Thiruvananthapuram and Goa.
The airline's website showed that many flights on Wednesday were cancelled, and several for the coming days have also been cancelled. Thomas' company Decor Aviation Private, one of the largest domestic airport ground handling companies, started Air Pegasus last year. Decor provides services across 11 major airports in India.
28 Jul, 2016
Virgin Australia full net year loss doubles
News reports that Virgin Australia says its full-year net loss more than doubled from a year ago, hurt by the one-off costs of a restructure to cut capacity amid stiff competition.
Australia's second-biggest airline will post a $224.7 million loss next month due to the cost of overhauling the airline, it said in a trading update to the Australian stock exchange. That compares with a $93.8 million loss in 2014/15.
25 Jul, 2016
Kenya Airways country's worst ever loss
News reports state that Kenya Airways on Thursday highlighted the scale of the turnround task at the company when it broke its own record for the country’s worst ever corporate results.
The airline reported a net loss of Ks26.2bn ($258m) for 2015-16, up from Ks25.7bn in the previous financial year, as its results were hit by a series of one-off items including charges linked to a poor fuel hedging policy.
Kenya Airways is seeking to recover from a failed expansion strategy, and, in spite of the record-breaking loss, analysts drew encouragement from an improvement in the company’s underlying performance.
The airline’s operating loss narrowed from Ks16.3bn in 2014-15 to Ks4.1bn in 2015-16, and Eric Musau, analyst at Standard Investment Bank, said: “From an operating perspective I think they’re really improving. They’re headed in the right direction and I don’t think they have anything major left to clear.”
But shares in Kenya Airways, which has now recorded four successive years of losses, fell more than 8 per cent on Wednesday to Ks4.35. The stock has dropped 87 per cent in the past five years.
22 Jul, 2016
Lufthansa shares plunge on profit warning affected by Terrorist attacks on bookings
New reports state that German airline Deutsche Lufthansa AG warned that a series of terrorist attacks have caused passengers to scrap travel plans, leading to an expected decline in full-year earnings.
Europe has been hit by a string of terrorist attacks. which can depress bookings. Last week, a truck driver in Nice killed at least 84 people when he plowed into revelers. A few weeks earlier, Istanbul's Atatü rk Airport was hit by a terrorist attack.
Both incidents were linked to Islamic State sympathizers. The Islamic State also claimed responsibility for an ax attack on train passengers in Germany this week. A terrorist attack against Brussels airport in March caused Lufthansa to delay plans to take over Brussels Airlines.
21 Jul, 2016
Air Astana loss first quarter
News reports state that Air Astana recorded a net loss of US$6.6 million, and an operating profit of US$0.975 million, for the first half of 2016.
Operating revenue fell by 30% to US$275 million, driven by a signification devaluation of the Kazakh Tenge in comparison with the first half of 2015, and by weaker regional travel markets in the wake of commodity price falls. Passenger numbers fell by 7% to 1.69 million.
22 Jun, 2016
VLM Airlines - flights cancelled as airline goes into Bankruptcy
News reports state that Belgian air carrier VLM Airlines announced Wednesday the company has filed for bankruptcy and that all flights moving forward have been canceled.
VLM Airlines filed a formal application asking for credit protection in May in order to avoid filing bankruptcy for six months. As time went on, the airline stated that it didn’t have enough time to make up for the number of pilots who left the company or bring in the additional financial resources.
In addition, VLM Airlines also reported that its planned sale-leaseback deal for several aircraft in its fleet fell through due to an unsuccessful re-capitalization, as well as several charter clients canceling contracts.
“We realized that all restructuring measures we had implemented from January onward had been come too late for a sustainable restructuring,” VLM Airlines CEO Hamish Davidson said in the statement. In addition, the airline tweeted out the following: "vlm regrets to inform that it has filed for bankruptcy, all flights have been canceled."
18 Jun, 2016
Nordica Airlines posts 15 million Euro loss first year trading
News reports state that Nordic Aviation Group AS, the Estonian national carrier using the Nordica brand, projects a turnover of 50 million euros and a loss of 15 million euros for its 15-month first year of operation, CEO Jaan Tamm told the daily Postimees.
When Nordica was established the first-year loss was projected at 9 million to 23 million euros, Tamm said and added that he personally had hoped for a single-digit loss number.
According to the company's current plan, the loss is expected to decline from 15 million to 6 million euros next year and shrink further to 3 million euros the following year, after which Nordica might break even or even make a profit in 2019, Minister of Economic Affairs and Infrastructure Kristen Michal said.
Nordic Aviation Group was established last fall to ensure continued direct flights out of Tallinn in the event of Estonian Air's bankruptcy. The new airline started flights in co-operation with Slovenia's Adria Airways after Estonian Air went broke in the wake of a European Commission decision that deemed state aid provided to the company to be unlawful and ordered it to be returned, which Estonian Air was unable to do.
07 Jun, 2016
Solomon Airlines grounds all flights
News reports state that Solomon Airlines has reportedly grounded all of its domestic and international flights, effective immediately.
The airline’s board and CEO are reported to have made the decision after not receiving overdue payments from the country’s finance department.
Radio New Zealand reports charter flights and seats for government MPs have remained unpaid, placing pressure on the airline’s ability to operate.
The CEO is reported to have claimed the airline has been operating “under duress”.
The airline has yet to respond to questions from Pasifik News, but a spokesman for Solomons Prime Minister Manasseh Sogavare says: “The government is working to address the situation and a further statement will be issued shortly.”
31 May, 2016
Aegean losses widen 2016
News reports state that Aegean Airlines widened its loss in the first quarter of 2016 compared to the same period a year earlier as sales grew 7.0 percent, Greece's largest carrier said on Thursday.
The company reported a net loss of 21.5 million euros (16.8 million pounds) in the first three months of the year versus a loss of 8.3 million in the same period last year.
17 May, 2016
Nok Air US$10.8 Million loss in Q1
News reports state that Thailand-based low-cost carrier (LCC) Nok Air reported first-quarter net loss of THB379.9 million (US$10.8 million), reversed from net profit of THB55.6 million in the year-ago period.
First-quarter revenue fell 2.04% to THB3.38 billion; operating costs for the quarter were THB3.55 billion, up 10.8% from the year-ago period.
The LCC attributed increased costs to the rise of aircraft lease rental and ongoing maintenance costs from a recent fleet expansion. Additional pressure came from "domestic low-cost carriers still facing challenges from [local] price wars and oversupply."
The company also said the lower-than-expected results, and the revenue decrease, were "mainly due to flight frequency cuts [resulting in] a 7.1% decrease in ASKs and a 10.3% drop in the number of passengers carried as a result of the reduction in pilots [numbers]." The carrier experienced significant flight disruptions in February as a result of new working conditions leading to a pilot strike.
15 May, 2016
VLM Airlines files for Bankruptcy Protection
News reports state that The Belgian airline based in Antwerp has officially asked the Commerce Court in Antwerp protection against its creditors for a period of six months to avoid bankruptcy time to restructure.
"VLM Airlines currently undergoing a major restructuring to ensure the future of the company and its employees," said the daily De Tijd Hamish Davidson, CEO of VLM Airlines. "Our customers, shareholders and our workers are our top priorities, we decided to introduce this procedure to make sure we have time to do the necessary, "he added.
The announcement was somewhat surprised when the specialist VLM had said in a statement on April 11 that the latest figures showed an improving trend with occupancy rates rose in April and operational yields higher. Recall Besides that last February, VLM Airlines launched three routes in Germany from the airport Friedrichshafen. She has based three Fokker 50 flying to Berlin Tegel, Dusseldorf and Hamburg, with two round trips per day on each route. VLM had taken these roads after the cessation of activity by the Austrian regional airline InterSky in November 2015. It was decided almost simultaneously to remove two routes deemed unprofitable early 2016, linking Antwerp to Geneva and Birmingham.
According to the daily De Tijd, VLM was deadlocked and had options other than to seek that protection against bankruptcy for his KBC bank had blocked its accounts in midweek. Many suppliers would not be paid, some Antwerp Airport as having the same notice for an unpaid debt of 100,000 euros.
05 May, 2016
Air France KLM shares drop sharply on loss
News reports state that Franco-Dutch airline group Air France-KLM echoed recent industry warnings of downward pressure on ticket prices, sending its shares sharply lower after reporting a narrower first-quarter net loss on a light rise in revenue.
The stock was down 4.6% in afternoon trading, following the previous day’s downward lurch in shares in Deutsche Lufthansa AG after the German carrier warned of possible lower fares amid a tough trading outlook for European airlines. They are curtailing growth plans and seeking new ways to reduce costs to deliver on promises of improving earnings.
Air France-KLM said its net loss narrowed to €155 million ($178 million) in the three months to the end of March from a loss of €559 million in the same period in 2015, on sales that rose 0.4% to €5.61 billion. Analysts polled by FactSet expected a net loss of €314 million on sales of €5.53 billion.
The airline operator said that it faces “a high level of uncertainty” for the rest of the year, with “downward pressure on unit revenue” as well as adverse exchange rates likely to offset much of the savings on fuel and other costs.
04 May, 2016
Lufthansa dive into the red with loss
News reports state that Lufthansa shares nosedived on Tuesday after the German airline said one-off effects and price pressures pushed it into a loss in the first three months of the year.
Lufthansa shares were among the biggest losers in morning trade on the Frankfurt stock exchange, shedding nearly six per cent in a market that was down by around 1.4 per cent.
Lufthansa said in a statement that it booked a net loss of 8.0 million euros ($9.2 million) in the period from January to March, compared with a profit of 425 million euros a year earlier.
But the airline pointed out that the year-earlier figure had been boosted by one-off financial gains.
At an underlying level, earnings before interest and tax (EBIT) showed a loss of 49 million euros, compared with a much deeper loss of 144 million euros a year earlier.
First-quarter revenues slipped by 0.8 per cent to 6.92 billion euros.
02 May, 2016
Virgin Australia 3rd quarter loss and capacity cuts
News reports state that Investors are punishing Virgin Australia for cutting capacity and forecasting a loss in the second half of the financial year.
Shares in the airline tumbled 4.3 per cent to 33.5 cents at 2.20pm (AEST), against a 0.39 per cent dip in the broader market.
The firm’s stock has slumped more than 24 per cent since the start of this year while the benchmark S&P/ASX 200 has shed 1.6 per cent.
11 Apr, 2016
Rayani Air service suspended
News reports state that Rayani Air has suspended operations since yesterday after the country's first Shariah compliant airline was launched just about three months ago last December.
Rayani Air founder Ravi Alagendrran said the decision was made following a strike by the airline's pilots yesterday and "technical" issues, which he did not elaborate on.
"We apologise to all our passengers. We will take this time to work out the operations and technical issues that have surfaced," Ravi said.
Ravi told staff in an email yesterday that operations were suspended with immediate effect until further notice as part of a company restructuring exercise.
"You may instruct your (subordinates) to close down the operations and re-count back the company assets," he said.
This would be the second restructuring exercise by the local company since it was founded on January 19, 2015, when Rayani Air changed its call sign from red to green and turned from a low cost carrier to a full service airline.
01 Apr, 2016
GOL reports a US$ 324 Million loss for fourth quarter
News reports state that Gol Linhas Aereas Inteligentes SA reported a fourth-quarter loss and predicted that business will get worse this year amid declining demand and a shrinking Brazilian economy.
The net loss was 1.18 billion reais ($324 million), the airline said in a statement Tuesday after the close of trading in Sao Paulo. Fourth-quarter net revenue totaled 2.65 billion reais against analyst estimates of 2.66 billion reais. The company posted a record annual loss of 4.46 billion reais.
Brazil’s largest carrier by market share said the results reflect the nation’s economic condition and forecast that its takeoffs and total seats would both decline between 15 percent and 18 percent this year. Gol, like its peers, was hit by a 3.8 percent contraction in Brazil’s economy and 33 percent drop in the country’s currency against the U.S. dollar last year. Airlines have been particularly hurt by weak demand among business travelers, who typically generate the most-profitable fares.
25 Mar, 2016
Fly Salone ceases flying
News reports state that After just 100 days of flying, the bottom of the Fly Salone Airline has fallen off, and the company has been grounded for good, as it seriously failed to meet its financial obligations to creditors, including the Icelandic company from whom they had leased the plane.
Fly Salone was an enterprise established by two well connected middle-eastern businessmen who are believed to have been granted Sierra Leonean passports and citizenship – messrs Jihad Saleh and Sam H. Sabrah.
And how much they paid for their Sierra Leonean passport and citizenship is another question for another day.
But as most credible financial analysts would agree, this was an enterprise that was doomed to fail, if the company registration document filed with the British Company House by both men, is anything to go by.
It seems from records that the airline had little or no investment and working capital, to have been granted approval by the Koroma government to register in the country and use the nation’s most precious asset – its national flag.
10 Mar, 2016
LATAM posts a $219 Million loss
News reports state that regional carrier LATAM Airlines posted a net loss of $219.2 million for all of 2015, saying the sharp depreciation of Brazil's real currency hurt its bottom line.
Chile-headquartered LATAM Airlines said on Tuesday that for the fourth quarter it saw a net loss of $16.3 million and that it was reducing its 2016-2018 fleet commitment by $2.9 billion.
09 Mar, 2016
SAS posts a net loss of $29 million
News reports state that Scandinavian airline SAS on Tuesday reported a first quarter net loss of 246 million kronor (29 million dollars), but said it more than halved its losses compared to a year ago.
Cost-cutting measures and lower fuel costs helped stem the flow of red ink. A year ago, the net loss totalled 640 million kronor.
Revenue in the November 2015 to January 2016 period was 8.27 billion kronor, down from 8.3 billion kronor a year ago. The first quarter is traditionally its weakest.
"Competition intensified in 2016 with increased capacity growth in the market," chief executive Richard Gustafson said in a comment.
The airline - whose main owners are the governments of Denmark, Norway and Sweden - is facing stiff competition from low-cost carriers such as Norwegian Air Shuttle.
08 Mar, 2016
FastJet shares plunge
News reports state that Fastjet, the African budget airline backed by Sir Stelios Haji-Ioannou, said it may need to raise funds this year after low demand for flights forced it to issue a second profit warning in less than three months.
The company’s shares plunged more than 40% taking their fall in the past year to more than 70%.
Difficult market conditions in the African airline industry have lasted longer than management expected, Fastjet said in a trading update. Results this year will be worse than expected and the company does not expect to generate any cash in 2016.
Fastjet said it had more than $20m (£14m) of cash available at the end of February and that it had enough to meet operational requirements. But the company said it might seek to raise further funds later in the year.
26 Feb, 2016
Republic Airways files for bankruptcy protection
News reports state that regional carrier Republic Airways Holdings Inc filed for Chapter 11 bankruptcy protection on Thursday, blaming several quarters of falling revenue after having to ground aircraft amid a pilot shortage.
The Indianapolis-based short-haul carrier, which feeds flights to American Airlines Group Inc, Delta Air Lines Inc and United Continental Holdings Inc brands, listed assets of $3.6 billion and $3.0 billion of liabilities, court documents showed.
Republic said the bankruptcy process would allow it to continue normal business while restructuring its finances and contracts.
"We worked hard to avoid this step," Republic Chairman Bryan Bedford said in a statement but added that the restructuring would "restore our airline and take it to new heights."
Republic offers approximately 1,000 daily flights to more than 100 cities in the United States, Canada, the Caribbean, and the Bahamas.
It is among of handful of regional airlines that have filed for bankruptcy since American Airlines filed in 2011.
United said in a statement on Thursday that it does not expect to change its flight schedules because of the bankruptcy. American said it is too early to assess an impact on scheduling, and Delta did not immediately return a request for comment.
24 Feb, 2016
Rex Airlines first ever loss at $11.4 million
News reports state that The Regional Express (Rex) Group has posted a statutory after tax loss of $11.4 million after writing down more than $17 million in assets, goodwill and fuel hedging.
It’s the first time the Australian-based business has posted a loss since its launch in 2002 in the wake of the Ansett collapse.
The business, which runs 50 Saab 340 turboprops to 58 destinations across Australia, posted a $3.3 million operating profit on a turnover of $132.6 million, down $600,000 on the same time the previous year. Half-yearly statutory profit after tax 12 months ago was $3.9 million.
The loss came with a $6.6 million goodwill impairment, a $6.8 million asset impairment and $4.7 million on fuel hedging.
The writedowns end a golden period for the business, which just 18 months ago, was Australia’s most profitable passenger airline group for the third consecutive year. While bigger rivals Qantas and Virgin Australia struggled with mounting losses and cost cutting, executive chairman Lim Kim Hai bragged in 2014 that Rex had “accumulated more PBT than Qantas or Virgin Australia over the last nine years”.
15 Feb, 2016
City Airways grounded
News reports state that A City Airways flight to Hong Kong with more than 100 passengers was grounded at Don Mueang airport on Saturday after the airline became the third to face suspension this year.
The Civil Aviation Authority of Thailand said fresh doubts were cast over City Airways' safety standards and the airline missed a key deadline on Friday.
CAAT chief Chula Sukmanop told the Bangkok Post Sunday his agency found City Airways unsafe to fly and ordered the 8am flight E8-326 to Hong Kong grounded until the problem was rectified.
The flight suspension left 160 Chinese passengers stranded.
Mr Chula said the airline was responsible for taking care of the stranded passengers and finding alternative flights for them.
He said the Hong Kong aviation authority also raised a red flag on the airline's airworthiness in five areas. Two of the faults have to do with a co-pilot working without taking the mandated minimum break and the airline employing some untrained flight attendants.
The CAAT informed City Airways in advance that it would be allowed to operate only until Feb 12, unless the problems were solved. Regular City Airways' flights from Phuket to Hong Kong were also suspended yesterday on similar grounds.
City Airways management appealed to the CAAT for leniency, saying it had about 2,000 passengers booked for travel.
"But this is strictly a matter of aviation safety and so I told them no," he said.
The CAAT ran checks and discovered the airline has unpaid debts to Aeronautical Radio of Thailand and aircraft leasing firms.
Mr Chula said the CAAT will consider the airline's finances and decide if it is fit to conduct business in the aviation industry.
An aviation source said City Airways has unsettled bills worth about US$1 million (36 million baht) with several aircraft leasing firms in the US. The airline operates a Boeing 737 aircraft on its Don Mueang-Hong Kong and Phuket-Hong Kong routes.
The source added the airline was also behind in paying its pilots' salaries. Aircraft maintenance standards were also questioned. The airline charges low-priced fares, attracting mostly Chinese tourists.
A source in the Transport Ministry said small private airlines, particularly charters, have been monitored closely as some of them are prone to liquidity crunches and financial insolvency with cases pending in court. Air safety is also a major problem.
08 Feb, 2016
Asian Air services suspended
News reports state that The Civil Aviation Authority of Thailand (CAAT) has suspended the operations of Asian Air, a small Thai-owned, full-service airline, slightly over a week after it banned a company plane from leaving Thailand.
The airline, founded in 2011 with a current paid-up capital of 500 million baht, said the order took effect on Sunday as the company is seeking all possibilities "to resume its operations as soon as possible".
On Jan 27, the CAAT banned an Asian Air aircraft from leaving the navy-owned U-Tapao airport in Rayong province to pick up passengers in Macau before flying on to Palau, an island country in the western Pacific Ocean, after it received an order from the Central Bankruptcy Court to freeze the debt-laden airline's assets.
05 Feb, 2016
Seaport Airlines files for chapter 11 bankruptcy
News reports state that SeaPort Airlines announced today that it has filed a voluntary petition for Chapter 11 reorganization in the U.S. Bankruptcy Court for the District of Oregon.
After much consideration, the Board of Directors of the Oregon-based airline has determined that reorganization is the best path forward for SeaPort Airlines, allowing the company to achieve long-term viability while maintaining its ability to provide air service to customers and communities. The announcement comes after the airline took a number of necessary steps to reduce its route network as a result of a national pilot shortage. Normal, day-to-day operations will not be interrupted by the filing.
02 Dec, 2015
News reports state that Airports Company South Africa has confirmed that Skywise Airline has been suspended from operating at ACSA Airports with effect from Wednesday.
This is due to unpaid airport charges for landing, take off, parking of aircrafts and related service fees.
The company only officially launched in February this year.
“The suspension shall be withdrawn as soon as Skywise Airline has made appropriate payments in accordance with the Airport Charges Regulations,” Acsa Spokesperson Colin Naidoo said.
The low-cost airline has been hampered by problems in recent months, with flights being cancelled in November, leading people to question its future.
In October, the airline reduced the number of its daily flights flights from eight to six, when flights were grounded over a payment dispute with the ACSA.
Despite its problems, Skywise co-chair Tabassum Qadir insisted at the time that it was business as usual at the company, with positive sales and plans to double its “fleet” of one Boeing 737 in December.
In a desperate move the airline has written an open letter to the state, saying “with R4 million in arrears with ACSA and R4 million with ATNS, the airline is already on Fly as You Pay.”
Following an initial grounding on 13 October, the airline said “an agreement had been reached to pay the arrears in installments. Despite making two of the agreed payments, the airline said an extension on its third payment due on 1 December had been refused.
“Two installments were duly paid. The third installment was due to be paid on 1 December for which an extension of 48 hours was requested and rejected.”
“More than 200 people work for Skywise and it is funded with personal funds without any government support or institutional loan. Any business takes 6-8 months to break even and we were close to that.”
“We got a notice at 17:00 Tuesday, 1 December to be shut down with immediate effect.”
Skywise said that with a country “choking unemployment levels at above 20%” it did not expect Government authorities to react in this manner.
“When Government is spending about R1 billion a day in infrastructure development it is logical that they protect businesses that will complement such efforts and speed up economic growth.”
“While the aviation industry is a catalyst to economic growth, in South Africa it is a world where a few people influence the decision making processes for their own benefits, and are responsible for the previous failure of 11 private airlines.
“People like us still take the challenge to reduce unemployment, grow the domestic aviation industry and the greater economy only to become a victim of financial stress when billions of rand is readily available to bail out the national carrier.
“More than R65 million personal funds has been invested in Skywise and 4 years of hard work have brought us so far to serve the needs of South African travellers and continue to offer them affordable air fares.
“For about 8 months we had made losses and we were now getting to a point where we can break even. With peak season ahead and more than 8 000 passengers having booked to fly with Skywise airline, they must be looking forward to have their holidays.
“Most of them have never flown before and now have a chance to fly on affordable rates because of Skywise airline.
In the letter Skywise hinted at the previous foreclosures of previous airlines such as 1Time and Nationwide , saying ” government authorities have shutdown yet another private airline, and closed the doors of aviation for new entrepreneurs. If Skywise fail there no entrepreneur will be brave enough to take the challenge to launch into this brutal industry!
“Will ours will be the 12th to fail?”
26 Nov, 2015
Asia X reports eighth consecutive net loss
News reports state that Malaysian long-haul budget airline AirAsia X Bhd reported its eighth consecutive quarterly net loss today, mainly hurt by higher aircraft operating expenses and foreign exchange losses.
The carrier booked a loss of RM288.2 million for July-September, wider than the RM210.85 million of the same quarter a year earlier, a stock exchange filing showed.
19 Nov, 2015
News reports state that SkyGreece Airlines has gone bankrupt about two months after it halted operations that stranded hundreds of passengers, the court-appointed monitor said Wednesday.
Jeffrey Kerbel of Ernst & Young confirmed that the airline was bankrupt, after filing for creditor protection in September in a bid to restructure.
Details of decision will be provided "in due course," he wrote in an email.
SkyGreece files for creditor protection after halting operations
Canadian Transportation Agency urged to help SkyGreece passengers after airline stops flying
SkyGreece Airlines 'temporarily' halting operations
Lawyers for the Toronto-based company had initially said the court-supervised restructuring proceedings would ensure that, over the long term, "all stakeholders, including passengers, are treated equitably and receive fair compensation for their claims."
Passenger rights advocate Gabor Lukacs said the bankruptcy leaves a number of unanswered questions, including if Canada has adequate oversight over the airline's finances and how long the company continued to sell tickets while knowing it might fail.
SkyGreece was founded in 2012 and started operations in 2014 with one Boeing 767 plane.
It cancelled all of its flights in late August, saying it was due to technical issues and financial setbacks resulting from the Greek economic crisis, but didn't elaborate.
The airline described the move as a temporary and said at the time that operations were expected to resume soon.
16 Nov, 2015
LATAM $113.3 million loss for quarter
News reports state that Regional carrier LATAM Airlines Group SA posted a worse-than-expected net loss and a sharp drop in revenues for the third quarter on the back of weak economic growth in South America and the depreciation of Brazil's real currency.
LATAM reported late on Thursday a net loss of $113.3 million for the quarter. That compares to a loss of $107.8 million in the same period 2014 and analysts' forecasts for a $99.1 million loss.
"As a result of the complex macroeconomic situation in South America and the significant devaluations of Latin American currencies during the period, especially the 55.5 percent depreciation of the Brazilian real," total revenues in the third quarter fell 20 percent to $2.5 billion, said the carrier.
09 Nov, 2015
Minoan Air suspends operations
News reports state that Minoan Air based in Heraklion in Greece, has suspended operations but hopefully this is only temporary with its fleet of four four Fokker 50s aircraft which had operated scheduled services between Athens, Heraklion, Alexandroupolis, Rhodes, Thessaloniki, Kos, Mytilene, Mykonos, and Santorini grounded for the timebeing pending a corporate reorganisation.
09 Nov, 2015
Estonia Air files for bankruptcy
News reports state that Estonia’s flagship airline announced on Saturday its bankruptcy after the European Union (EU) ruled it would have to pay back €85m plus interest of state aid pumped into the struggling business to keep it flying.
But, the authorities in Tallinn moved to absorb the shock by immediately setting up a new carrier to take over key routes.
"Estonian Air will cease operations from November 8," the company’s webpage said on Saturday. The carrier promised that passengers with tickets would be offered replacement flights with other airlines, or that they could claim a refund payable next month.
The announcement came after the European Commission ordered earlier on Saturday the state-controlled airline to pay back the millions it had received in aid.
"The European Commission has concluded that aid measures by Estonia in favour of national flag carrier Estonian Air gave the company an undue advantage over its competitors in breach of EU state-aid rules," the EU’s executive branch said.
"Estonian Air, therefore, needs to pay back the state aid already received, which according to the commission’s information amounts to about €85m plus interest, and cannot receive an additional €40m of restructuring aid," it said. The Baltic country’s flagship carrier had been struggling financially since 2006, the commission said, saying the company should not continue to rely on public money to survive.
"It would not be a good use of taxpayer money to keep Estonian Air in the market artificially — nor would it be fair to competitors, which have to compete without such support," said commissioner Margrethe Vestager, in charge of competition policy.
* Cover under IPP's policies is excluded for all policies or tickets issued from 9th November 2015
09 Nov, 2015
Intersky files for Bankruptcy
According to Intersky's website "Stop of air traffic
Sale of tickets and air traffic stopped in an instant.
Unfortunately we have to inform you that the intense negotiations with a potential investor didn’t result in a positive outcome. On Monday, 09th November 2015, InterSky will apply for insolvency. As a result, the ticket sale has been stopped and aircrafts remain on the ground.
Any claims of passengers with booked InterSky-tickets can make an application to the Landesgericht Feldkirch (federal court) as by Monday, 09th November 2015 with the certain reference number. InterSky will announce and communicate the reference number on Monday, 09th November 2015.
We truly regret the inconveniences and kindly ask for your understanding!
InterSky Luftfahrt GmbH"
* Cover is excluded under IPP's policies for tickets of policies issued from 9th November 2015
29 Oct, 2015
Fly Africa grounded
News reports state that Fly Africa's operations have been suspended after the airline surrendered its operating licence due shareholding disputes and failure to meet statutory requirements.
The low cost airline's planes have been grounded after the Civil Aviation Authority of Zimbabwe (CAAZ) suspended the airline’s operations.
Earlier this week, the airline surrendered its operating licence citing operational challenges. Close sources say the decision to surrender the operating licence is a result of boardroom squabbles and shareholding disputes.
The airline has local and foreign shareholders. Apart from the internal disputes, the airline has not been remitting passenger services charges to CAAZ.
Information gathered also reveals the airline aircraft were not based in Zimbabwe while the company did not have an accounting manager in violation of Statutory Instrument 140.2010.
Transport and Infrastructural Development Minister Dr Joram Gumbo confirmed the development, adding that after surrendering the operating licence and failure to meet the regulatory requirements the airline’s operations had to be suspended.
"After surrendering the licence and failure to meet the regulatory requirements, the airline’s operations have been suspended," said Dr Gumbo.
The budget airline’s board chairperson Professor Chakanyuka Karase could not be reached for comment.
There was drama at the Harare International Airport on Tuesday when passengers had to be asked to disembark from the plane.
Despite surrendering its licence, the airline had booked passengers, prompting CAAZ to intervene for the safety of the passengers and to enforce the law.
The airline was licensed by CAAZ in August 2014 and introduced its first aircraft in the same month to service the Victoria Falls-Johannesburg route.
* cover under all IPP policies is excluded for this airline with immediate effect for all policies and tickets issued from 29th October 2015
02 Oct, 2015
Transaero files for Bankruptcy
News reports state that Russian Prime Minister Dmitry Medvedev has given the green light to begin bankruptcy proceedings for Transaero airlines, according to sources cited by online newspaper Gazeta.ru. Negotiations on a takeover of Russia's second-biggest carrier by Aeroflot have been deadlocked. According to sources, Aeroflot took a hard line refusing the Transaero consolidation.
15 Aug, 2015
LATAM Group losses widen
News reports state that Latin America’s largest airlines tumbled this week after carriers reported disappointing earnings that were hurt by lower demand and weaker currencies.
Latam Airlines SA, which reported a wider-than-expected loss Thursday, is down 10 percent this week to a nine-year-low. Colombia’s Avianca Holdings SA has plunged 15 percent to a record low, Panama City-based Copa Holdings SA lost 19 percent, and Brazil’s Gol Linhas Aereas Inteligentes SA is also down for the week after losing as much as 3.9 percent Friday.
An index of Latin American airline stocks reached a six-year low Friday, a day after a gauge of the region’s currencies fell to a record. Weaker currencies are making travel more expensive for Latin Americans amid a regional economic slowdown and offsetting the benefits the airlines would have normally seen from the bear market in oil.
“Massive depreciation of currencies and economic slowdown in the region is affecting demand,” said Daniel Guardiola, an analyst at Larrain Vial. “Most airlines increased their guidance at the end of 2014 with the fall in the price of oil. They didn’t foresee other risks that could affect the region.”
Citing “challenging macroeconomic conditions,” Latam cut its operating-margin guidance this year and said it may postpone delivery of some planes. Copa also slashed guidance on Aug. 12 after its quarterly results reflected weak demand. Gol CEO Paulo Kakinoff said in a call Friday it was the most adverse scenario he’s ever seen in Brazil. Avianca will report earnings next week.
15 Aug, 2015
Korean Airlines swings to loss
News reports state that Korean Air Lines Co. swung to a loss in the second quarter, hurt by the outbreak of Middle East respiratory syndrome in South Korea in late May that triggered large-scale trip cancellations by Chinese and Japanese tourists.
The country’s largest airline by revenue reported Thursday a 169.2 billion won ($144 million) net loss for the April-June period, compared with a 361.8 billion won profit in the year-earlier period.
The results were worse than the market had expected.
Analysts polled by The Wall Street Journal forecast earlier this week that the carrier would post a second-quarter net loss of 75.1 billion won, but expected an operating profit of 74.5 billion won.
“MERS has had a greater-than-expected impact, scaring off tourists during the traditionally off-season,” Korean Air said in a statement.
The Korean flag carrier said the bottom line was also hurt by a weaker Korean currency inflating the value of its foreign debt and interest payments.
Revenue declined 3.8% on year to 2.79 trillion won from 2.90 trillion won.
The country’s two biggest airlines—Korean Air and Asiana Airlines Inc.--suffered a deep decline in inbound passenger traffic, forcing them to suspend or cut back flight schedules on important routes.
Korea’s MERS outbreak was the largest outside Saudi Arabia, with 186 infections and 36 deaths, prompting thousands of tourists to cancel visits to the country. No new MERS cases have been reported since early July.
Korean Air said Thursday it has resumed normal operations on all routes to China and Japan.
More than two-fifths of South Korea-bound travelers last year were Chinese, and their numbers have swelled at a compounded annual growth rate of 40% over the past three years, according to Credit Suisse.
Analysts said a weaker Chinese currency may also affect the carrier’s sales, but any negative impact will be short-lived.
“Tourists usually don’t scrap their overseas travel plans just because of foreign-exchange fluctuations. The yuan effect will be limited,” said Shinhan Investment Corp. analyst Park Gwang-rae.
China’s surprise devaluation of the yuan for the third time in a row this week has raised concerns among investors that the Chinese tourist boom may be hurt by their weakened purchasing power.
14 Aug, 2015
Air Berlin losses widen
News reports state that German airline Air Berlin said it expected yield, load factors and sales to improve in the second half of the year after it reported a wider second-quarter loss on Wednesday.
The airline, 29 percent owned by Abu Dhabi-based Etihad, has made operating losses in four of the last five years and changed its chief executive four times in the last three years as it seeks to stem losses and reduce debt.
It reported a second-quarter loss before interest and taxes (EBIT) of 15.9 million euros ($17.8 million), against a loss of 6.9 million one year previously as the strong U.S. dollar and fuel hedging contracts eroded the benefits of cheaper jet fuel.
13 Aug, 2015
Asiana Airlines losses widen
News reports state that Asiana Airlines Inc., South Korea's second-largest flag carrier, said Tuesday that its loss sharply widened in the second quarter from a year earlier, hit by a fall in travelers amid fears over the outbreak of Middle East Respiratory Syndrome (MERS).
Net loss came to 85.4 billion won (US$72.4 million) during the April-June period, compared with the previous year's loss of 11.8 billion won, the company said in a regulatory filing.
Sales dropped from 1.4 trillion won to 1.3 trillion won over the cited period, while the company posted an operating loss of 61.4 billion won, a turnaround from an operating income of 3 billion won, the company added.
"The passenger business in the second quarter was much affected by MERS, which was first confirmed in May. That caused a spike in the number of cancellations of trips by Chinese and Japanese tourists," the company said.
Sales in the passenger sector shrank 7.7 percent on-year in the second quarter, while those of cargo shipments dropped 13.5 percent over the same period due in part to a slump in routes bound for Europe.
During the first half, the company posted a net loss of 25.8 billion won, widening from the previous year's loss of 58.3 billion won. It logged 2.7 trillion won and 15.6 billion won in sales and operating profit, respectively, in the same period.
Shares of Asiana Airlines closed down 4.19 percent at 6,400 won on Seoul bourse, and the second-quarter results were released after the market closed.
06 Aug, 2015
Virgin Australia cuts routes as losses mount
News reports state that Virgin Australia will withdraw from a number of routes from Australia to Bali and Thailand and replace services with its budget offshoot Tigerair in a bid to stem bleeding from its international operations whose losses widened to $69 million for the year.
In a major shake up of its short-haul international network, Virgin will stop flying from Adelaide, Melbourne and Perth to Bali from March, and instead use Tigerair on those routes, after deciding it is better suited to a no-frills carrier.
It puts Tigerair directly up against Qantas' budget offshoot, Jetstar, and AirAsia on the routes to the popular Indonesian tourist destination. Jetstar has the largest market share on Australia-Bail routes, on which it flies new 787 Dreamliner aircraft.
Virgin will also ditch flying from Perth to Phuket from February because it said the market was "just not big enough" to make it viable. Unlike Bali, Virgin will not replace its services with Tigerair.
04 Aug, 2015
Kenya Airways massive loss, may need bailout
News reports state that Kenya Airways, which reported a record loss in its year ended March, may require a $500-600 million bailout, the Kenyan finance minister said on Tuesday.
Henry Rotich told Reuters the final figures and the form of recapitalisation would depend on a turnaround plan being prepared by Mckinsey and Seabury consultants, who were hired by the airline part-owned by AirFrance-KLM.
31 Jul, 2015
Syphax Airlines grounded
News reports state that Tunisia's private carrier Syphax said it is grounding all its flights temporarily from midnight Thursday, with a company lawyer citing "financial difficulties".
"It is a temporary suspension of flights... until solutions are found," said Samia Maktouf.
In a terse statement Syphax said flights in to and out of Tunisia would be grounded from midnight, without giving a reason for the decision.
The announcement comes a day after the International Air Transport Association (IATA) said it was suspending all activity with Syphax, according to Maktouf.
Tunisian media said IATA, the world's largest airline association, has instructed its partners, including travel agencies, to cease dealing with Syphax, saying the carrier had failed to meet its financial obligations.
Syphax was founded by businessman Mohamed Frikha following the 2011 uprising that toppled president Zine Ben Abidine Ben Ali.
Tunisia has struggled to rebuild its economy since the uprising, namely its tourism industry.
* Under all IPP policies cover is excluded with immediate effect for policies and tickets issued from 31st July 2015
30 Jul, 2015
Aer Lingus Posts first half year losses
News reports state that Aer Lingus has posted first-half year losses of €13.9million (£9.8m) amid the airline's ongoing sell-off to IAG.
The figure is an increase from losses of €9.9m (£7m) during the same period a year previously "before net exceptional items".
But the carrier turned a profit of €34.5m (£24.4m) for the second quarter of the year as the much-anticipated takeover by Willie Walsh's IAG neared.
The Dublin-based carrier revealed a drop in profits of about 11% from the same period last year as fluctuations in foreign exchange rates - mainly in the US dollar and euro - and high fuel prices hit the business.
But overall revenue at the airline grew by 7% to €468.9m for the second quarter of 2015.
The report came at the same time as claims that the company could be set to free up some of its Belfast to Gatwick slots as part of a European Commission requirement amid the IAG takeover.
26 Jul, 2015
Air France losses widen
News reports state that Air France-KLM fell in the second quarter, prompting Europe's second-largest network carrier to launch 300 million euros (212 million pounds) in new cost cuts and scale back its capacity growth for the winter season.
The Franco-Dutch airline group reported lower operating profit and slipped further into the red with a net loss of 79 million euros in the quarter, but maintained its objectives for the year on Friday, including a reduction in debt.
Chief Executive Alexandre de Juniac said the 300 million euros in new savings would slash about a quarter from the group's general administrative expenses of over 1.1 billion.
He urged Air France pilots to reach a new productivity agreement by the end of September but warned that without a deal, the airline would have to take "severe measures" to cut back routes in its long-haul network as early as October.
01 Jun, 2015
The new boss of Malaysia Airlines has claimed the carrier is "technically bankrupt"
News reports state that Christoph Mueller has confirmed that 6,000 jobs will be cut at the troubled airline - ahead of a rebrand in September which aims to repair the damage caused by the losses of MH370 and MH17.
Consumer confidence was badly affected when Flight MH370 disappeared with 239 people on board in March 2014, and just four months later, Flight MH17 was downed by a suspected ground-to-air missile over Ukraine - killing 298 people.
The tragedies led to Malaysia Airlines being taken into state ownership and delisted from the stock market, but analysts claim the company has been mismanaged for years - a sentiment echoed by Mr Mueller.
"The decline of performance started long before the tragic events of 2014," he said.
Stiff regional competition has led the company to post losses for several years - and in a statement, the airline pledged to "stop the bleeding" in its finances by the end of 2015, in the hope it will return to growth by 2017.
Mr Mueller, nicknamed The Terminator in Ireland for the job cuts he implemented at Aer Lingus, is expected to reduce the number of long-haul routes offered from Malaysia to Europe, and focus on regional services.
However, a "profitable" twice-daily service from London Heathrow to Kuala Lumpur is set to continue.
Under the new CEO's plans, Malaysia Airlines' workforce would shrink to 14,000.
The challenges facing the company come amid low jet fuel prices, which are expected to make this year one of the most profitable for the industry since the start of the century.
It is expected that the 12-month restructuring plan for Malaysian Airlines will cost £1.1bn - and last week, an administrator was appointed to oversee the transferral of the carrier's assets to a new company.
Mr Mueller said it was "business as usual" despite the disruption - and told passengers all reservations would be honoured, with scheduled flights going ahead as planned.
24 May, 2015
Malaysian Airlines enters administration
News reports state that Malaysia Airlines has moved to reassure its customers it is operating as normal after a voluntary administrator was appointed today as part of a restructuring under its government owners.
Newly installed chief executive Christopher Mueller said operations would continue as normal under the administration and existing reservations would not be affected.
“This appointment does not affect our daily operations or existing reservations,’’ he said. “You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honoured, and that our Enrich frequent flyer program continues with miles and status preserved.”
Mr Mueller’s statement came after Khazanah Nasional Berhad, the state-owned fund that last year took control of MAS, announced the appointment of administrator Mohammad Faiz Azmi to oversee the restructuring of the delisted airline.
The airline’s statement said the appointment reflected the restructuring taking place before the relaunch of the airline group in September under a new business model and a new management team led by Mr Mueller.
The appointment of the administrator comes under the Malaysian Airline System Berhad (MAB) (Administration) Act 2015 enacted by the Malaysiag Government.
The MAS Act allows the administrator to facilitate the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.
The airline was already in financial trouble when it was hit by the loss of two Boeing 777s last year.
* under IPPs policies cover is excluded from 25th May for all policies and tickets issued going forward.
23 May, 2015
Air Lituanica ceases operations
News reports state that Air Lituanica, the Lithuanian airline founded here, ceased its operations on Friday due to financial difficulties.
"Airline management, acting responsibly and seeing risk not to fulfill commitments for the passengers, is stopping all regular flights and will make efforts so that travelers are affected as less as possible," the company said in a statement.
Air Lituanica cancelled all its flights as from Saturday. The company still operated flights to and from Amsterdam, Paris and Tallinn on Friday.
A solution for some passengers was found, the company noted.
"Air Lituanica agreed with AirBaltic that all passengers with Air Lituanica tickets for cancelled flights between May 22 and May 29 will be rebooked on AirBaltic flights to their origin destinations," it said in a statement.
AirBaltic is a Latvian airline operating in Latvia, Lithuania and Estonia.
"We will rescue the stranded passengers in the first days following the suspension of (Air Lituanica) flights and will offer special rescue fares for customers booked for flights later in the summer," Martin Gauss, AirBaltic's chief executive officer, was quoted as saying in a separate statement.
"Furthermore, today's event in Vilnius is a strong signal that the three Baltic countries should take a common approach to their aviation, to best support travellers, new economic activity, and new jobs," he added.
Air Lituanica stressed all passengers have guaranteed flights with the Latvian company for the next eight days.
However, it has yet to be determined who will carry passengers travelling after May 29. Air Lituanica promised to provide a solution to this by next Monday at the latest.
"If there will be no agreement (for rebooking with AirBaltic) all passengers are entitled for full refunds and guarantees by European law and the Montreal convention," Air Lituanica said.
Remigijus Simasius, mayor of Vilnius, said he learned Air Lituanica was close to bankruptcy one month ago when he came into office after mayoral elections earlier this spring.
"The company's financial liabilities exceeded its assets by more than three times, it is the main reason why no private investors agreed to get involved in joint activities," Simasius told reporters on Friday.
However, Rimantas Sinkevicius, Lithuania's transport minister, said the collapsing company could have been saved by an investor.
"We hoped that the company would manage to find investors, to cooperate with other Baltic countries and develop these activities," Sinkevicius was quoted as saying by BNS news agency.
"Unfortunately, the investor has not been found and the markets of the three Baltic countries have not been integrated," he added.
According to Simasius, the Lithuanian government refused to financially support the airline. Vilnius municipality, the main Air Lituanica stockholder, suffered about 10 million euro (about 11 million U.S. dollars) yearly loss due to the company's situation, the mayor said.
Simasius did not dismiss the possibility of an official investigation into the airline activities.
"The main thing is rather the beginning of the company, not the end; this is where we should look for the reasons why the company is dead today," he noted.
Air Lituanica was established in 2012 at the initiative of the then-Vilnius mayor Arturas Zuokas. It is the second Lithuanian air carrier to cease operations. Defunct privately-owned flyLAL-Lithuanian Airlines grounded all flights early in 2009 also due to financial troubles.
13 May, 2015
Air Berlin loss
News reports state that German airline Air Berlin Plc. (AIBEF.PK) reported that its net result for the first quarter of 2015 amounted to negative 210.1 million euros, compared to negative 209.8 million euros in the first quarter of 2014. Loss per share was 1.85 euros compared to loss per share of 1.80 euros last year.
The financial result in the first quarter of 2015 amounted to negative 52.3 million euros compared to negative 30.5 million euros in the previous year's first quarter.
Pre-tax loss narrowed to 212.2 million euros from 213.4 million euros in the same quarter of the previous year.
The operating result (EBIT) amounted to negative 159.9 million euros compared to negative 182.8 million euros in the prior year's quarter.
06 May, 2015
Hawaiian Island Air large loss
News reports state that Island Air, the Hawaii interisland airline owned by billionaire Larry Ellison, lost nearly $12 million in the fourth quarter, or more than half of the $22 million it lost for all of 2014, according to data released Monday by the Bureau of Transportation Statistics.
The interisland carrier reported operating revenue of $7.9 million in operating revenue in the fourth quarter.
The $11.8 million loss in the fourth quarter was its seventh consecutive quarter of losses and more than double the $4.9 million it lost in the same quarter in 2013. For the entire year, the company lost $21.78 million in 2014, compared to a loss of $3 million in 2013.
Last week, Island Air said that it would cut its workforce by 20 percent, close its operations on Kauai and cancel delivery of new aircraft in the short term as it repositioned itself.
02 May, 2015
Virgin Australia reports loss
News reports state that Virgin Australia has posted a narrower loss during the March quarter as costs fell, passenger yields improved and budget subsidiary Tigerair recovered to turn a small profit.
The airline suffered an underlying loss before tax of $22 million in the three months to March 31, compared with an $83 million loss during the same period in 2014.
It made a statutory loss after tax of $28 million, compared with $103 million previously.
Tigerair also made a small underlying profit before tax of $500,000, compared with a loss of $25 million in 2014.
24 Apr, 2015
Air Arik grounded
News reports state that following the N1.2 billion debt owed the Federal Airports Authority of Nigeria (FAAN) by Arik Air, the Association of Air Transport Association of Nigeria (ATTSAN) and the National Union of Air Transport Employers (NUATE), on Thursday grounded the airline’s scheduled flight operations from the Nnamdi Azikiwe International Airport (NAIA), Abuja, to other parts of the country.
As at the time of filing this report, the airline’s 13 scheduled flights to different parts of the country were automatically cancelled with hundreds of passengers going through excruciating time trying to take alternative airlines to their destinations.
While speaking on the phone from Lagos, FAAN’s Managing Director, Mr. Saleh Dunima, said efforts were however being made in Abuja with the two unions to resolve the crisis.
He said: “Right now, Arik is discussing with the management of Abuja airport, as soon as they sort that out, they will resume flight operations.”
Asked to speak on the profile of the indebtedness, he refused to make its disclosure, explaining that the amount being owed is not supposed to be in public domain.
Speaking on anonymity, an authority hinted that the Arik air had also failed to remit the passengers service charge of N1,000, the amount which is due to FAAN also runs into millions.
The source disclosed that what Arik is owing FAAN from landing and parking fees is N1.2 billion, which is separate from the PSC.
He said Arik could only be allowed to commence flight operations if they can pay a substantial percentage of the amount before the close of work yesterday.
The source said the allocation of slots seven and eighth to Arik which covers operations within the 22 airports would have been an added advantage to the airline, adding that some local airline operators do not have such advantage of flying the 22 airports.
31 Mar, 2015
GOL reports $248 loss
News reports state that GOL Linhas Aereas Inteligentes S.A. reported fourth-quarter 2014 net loss approximately $248 million, much wider than the year-ago loss of $8.4 million. Net loss in 2014 was approximately $474 million, much wider than the year-ago figure. A decline in domestic supply hurt the 2014 results.
19 Mar, 2015
TAP $50 Million loss
News reports state that Portugal's flag carrier TAP swung to a 2014 loss of 46 million euros ($50 million), after a profit the previous year, due to delays with the delivery of new aircraft and strikes against the planned privatisation of the state-owned airline.
Still, TAP said in a statement passenger numbers rose nearly 7 percent to 11.4 million. Plane occupancy rate also rose to 80.6 percent from 79.5 percent a year earlier.
Various strikes at TAP, called against the privatisation because of fears it will lead to job losses, along with operating problems with its fleet and other factors cost the airline 108 million euros.
In January, after talks with the unions and threats of more crippling strikes, the government said any buyer or buyers of TAP would be barred from laying off workers en masse as long as the state remains a shareholder.
The government plans to sell its 66 percent controlling stake in TAP, but will retain a 34 percent holding that could be sold two years after the privatisation.
TAP has debts of some 1 billion euros and the cash-strapped state is banned from injecting capital into the company under European Union rules.
09 Mar, 2015
SAS losses widen
News reports state that Scandinavian Airline SAS (SAS.SK) on Thursday reported a widening net loss for its fiscal first quarter as costs increased due to reduced capacity.
The airline said net loss for the three months ended Jan. 31 was 640 million Swedish kronor ($77 million), compared with a loss of SEK112 million for the same period last year.
SAS said that the potential exists for it to post positive earnings before tax and nonrecurring items in the 2014/2015 fiscal year.
Sales during the period notched SEK8.37 billion, up from SEK7.87 billion last year, while operating loss was SEK657 million, compared with an operating profit of SEK1.17 billion in the year ago period.
Shares closed at SEK18.30 Wednesday.
01 Mar, 2015
Thai Airways losses bigger than expected
News reports state that Thai Airways International PCL posted a wider-than-expected fourth-quarter loss as a drop in passenger numbers after months of domestic political unrest hurt the national carrier, pushing its shares down to a nine-month low.
The performance raised concerns on whether the carrier can turn around quickly while it battles fierce competition and soaring debt, brought about by high operating costs and aircraft purchases in recent years.
The airline is one of Thailand's major state companies undergoing reform since the military seized power in May. It is expected to post further losses this year due to higher costs from restructuring, which involves cutting operating costs and capacity by 20 percent, selling aircraft and job cuts.
"Thai Air's business restructuring is unlikely to bear fruit in the near term and we see execution risk given the firm's inflexible cost structure and numerous stakeholder groups," Suppata Srisuk of Bualuang Securities said in a note.
Thai Airways, 51 percent owned by the finance ministry, has total debt of $5.9 billion, the highest among Southeast Asian airlines and ranking number 9 among 47 airlines in Asia Pacific, according to Thomson Reuters data.
The airline posted a net loss of 6.4 billion baht ($196 million) for October-December, compared with a net loss of 5.7 billion baht in the same period a year earlier. Six analysts surveyed by Reuters had forecast an average 2.6 billion baht net loss.
A foreign exchange gain of 3.2 billion baht in the quarter was wiped out by loss from jet fuel hedging, an airline official told Reuters.
26 Feb, 2015
Aer Lingus suffers a €180.3 million loss
News reports state that Aer Lingus suffered a pre-tax loss on the back of its €190m payment to settle the dispute over the underfunded Irish Airlines Superannuation Scheme (IASS).
The Irish flag carrier suffered a pre-tax loss of €180.3m, but would have seen a profit of €72m had it not been for a number of one-off costs, including the €190.7m payment to launch a new defined contribution (DC) plan.
The plan will offer benefits to members of the IASS that have seen their future IASS payments reduced as part of the proposal to tackle the more than €700m deficit, which the company was barred from solving through additional contributions.
The airline’s preliminary results for 2014 showed that the Pensions Authority had signed off on the IASS funding proposal in late December, with the €190m immediately placed in an escrow account.
“Aer Lingus Limited has also been involved in a separate set of discussions concerning the Pilots Scheme, a single employer scheme for Aer Lingus pilots,” the report added.
It noted that, following negotiations with the pilots’ union, a funding proposal for their scheme had been submitted to the regulator in early December.
The company also disclosed professional and legal fees of €6.4m in 2014, which it said “principally” related to settlement talks relating to the IASS.
Aer Lingus currently faces a lawsuit from the pensioners of the IASS, with a group representing pensioner interests’ threatening a High Court case worth €170m over the benefit cuts suffered by retired workers.
19 Feb, 2015
Air France shares slide as strikes hit
News reports state that Air France KLM shares have fallen as much as six per cent in early trading to 713 cents per share on the .
The owner of Air France and KLM airlines said group revenue fell 2.4 per cent to €24.91bn (£18.4bn) during 2014, despite a 1.3 per cent rise in passenger numbers for the full year.
Earnings before interest, tax, depreciation and amortisation fell to €1.59bn with the effects of a 14-day pilots' strike.
The Franco-Dutch group will cut investments by €600m over the next two years - including cutting the equivalent of another 800 jobs through voluntary measures.
It also plans to reduce debt, which increased by €51m to €5.4bn in 2014, to €5bn by the end of 2015, more than the €4.5bn previously planned.
2014 was a tough year for the European carrier, after it slashed profit forecasts three times. It also took a hit from a 14-day pilots' strike, which cost the airline €425m.
In the ever-turbulent airline industry, which has previously blamed over-capacity for denting profits, the outlook is still challenging in Europe which isn't much helped by worries over the Eurozone economy.
There's pressure from increasing competition from low-cost carriers and Asian and Middle Eastern airlines expanding into the region.
It is also in the midst of a five-year plan to reduce costs in its French business and expand its low-cost carrier Transavia.
09 Feb, 2015
EuroLot to liquidate
News reports state that the airline is to liquidate. The move had been expected. ''For two months we analyzed various options concerning Eurolot's activities,'' commented Adam Ambrozik, head of a restructuring department at the Treasury Ministry. ''We have taken responsible decisions regarding the ownership,'' he added. Ambrozik argues that there is no forseeable way of making the airline profitable. The treasury had a 62.1 percent stake in the airline.
28 Jan, 2015
Skymark Airlines files for bankruptcy
News reports state Japan's Skymark Airlines filed for bankruptcy protection on Wednesday (Jan 28), as the struggling carrier faces potentially massive penalties over a cancelled US$2.2 billion jet order with Airbus.
The filing came less than a month after Japan's third-biggest airline said the European aircraft maker was planning to sue it over the collapsed deal.
"The company came to the conclusion that it will be extremely difficult to rehabilitate itself on its own," the airline said in a statement released late on Wednesday. Skymark said company executives have held an emergency board meeting and filed for bankruptcy protection with the Tokyo District Court.
President Shinichi Nishikubo - who rejected an Airbus call to merge with a larger rival after their dispute was made public in July - also resigned on Wednesday, the carrier said in a separate statement. The airline will continue operating for the time being, it added.
Skymark said it now has debts topping US$603 million and faces possible compensation costs of as much as US$700 million linked to the axed Airbus deal. The airline is in talks with Airbus to reduce the size of the penalty, after accusing Airbus of threatening it with "overpriced" costs.
Earlier this month, Japan's Asahi newspaper said talks about rival All Nippon Airways (ANA) investing in Skymark had fallen apart, and that the loss-making carrier would try to climb out of the red on its own. Skymark rejected that report but said it was talking with ANA and Japan Airlines about code-sharing, as well as with domestic and overseas funds over a possible investment deal.
The carrier has struggled because of fierce competition in the airline sector, and its woes deepened after the Airbus affair made headlines last summer. Skymark's Tokyo-listed shares lost about half their value after Airbus cancelled the order for six A380 jets, signed in 2011, apparently over concerns it would not get paid.
Following the bankruptcy filing, Tokyo Stock Exchange announced it would delist the airline from Mar 1.
16 Jan, 2015
Ak Bars Aero Airlines suspends operations
News Reports state that The airline Ak Bars Aero, the sole air carrier in the Volga Republic of Tatarstan, has joined the group of domestic air companies experiencing financial problems amid the ruble’s rapid devaluation and declining passenger traffic.
The Ak Bars airline has announced it is suspending its operations from Monday. “The suspension will approximately last until late March,” Ak Bars airline spokeswoman Ilgiza Nasibullina said, adding that “the republic was interested in keeping the airline and therefore there can be no talk about the bankruptcy of Ak Bars Aero.”
14 Jan, 2015
Hamburg Airways files for bankruptcy
News reports state that The German Civil Aviation Authority (LBA) suspended the air operator’s certificate (AOC) for Hamburg Airways shortly before Christmas, several German media outlets have reported. The carrier’s last flight was operated from Moscow to Hanover on Dec. 19.
Hamburg Airways could not immediately be reached for comment. The airline’s website is still online.
Privately owned Hamburg Airways was founded in December 2010 and started flights in March 2011. It was the successor of Hamburg International, which declared insolvency in October 2010.
09 Jan, 2015
Cyrpus Airways ceases to fly
New reports state that Cyprus' national airline lost its operating license and stopped all flights after the European Union ruled that it had illegally received tens of millions of euros in state aid, officials said Friday.
Finance Minister Harris Georgiades and Communications Minister Marios Demetriades said that an administrator will now be tasked with winding down Cyprus Airways. The country's air transport licensing authority said it revoked the airline's license because it could not ensure flight safety as a result of its financial troubles.
The European Commission ruled that money-losing Cyprus Airways, which is nearly 94 percent government-owned, must pay back over 65 million euros ($76.78 million) out of a 103 million euro ($121.67 million) state aid package it received in 2012-13 that gave it an unfair advantage over competitors.
The ministers said the government will cover the estimated cost of 6-7 million euros of Cyprus Airways ticket holders who either wish to be reimbursed or make alternative travel arrangements.
Demetriades said some 70 airlines fly to Cyprus, which received a multibillion euro international rescue nearly two years ago, and that the demise of the national carrier — whose market share dwindled to a mere 10 percent — won't diminish the east Mediterranean island's air links abroad.
He said plans are under way to set up a new company with private backing that will bear the Cyprus Airways name and logo.
Several dozen airline staff milled outside the company's Nicosia offices awaiting word of what will happen to them as Georgiades said they will receive salaries and pension benefits that they're entitled to.
Georgiades said the airline's financial troubles were so severe that potential investors couldn't be wooed. Early investment feelers sent out by companies including Ireland's Ryanair and Greece's Aegean went nowhere.
The company, founded in 1947, struggled due to years of graft and mismanagement, and hemorrhaged money as it could no longer compete with new low-cost airlines that grabbed huge chunks of its business.
Authorities tried to salvage the bloated airline through several restructuring plans that halved staff to around 500 people and shrunk the fleet to six planes. But the last straw came by way of the European Commission's ruling.
* under IPP's policies, cover is excluded going forward from today for Cyprus Airlines.
05 Jan, 2015
SkyTrans closes operations
News reports state that Cairns-based regional airline Skytrans has announced it has ceased operations after 25 years.
The family owned company has been steadily declining for more than 12 months after the loss of Queensland Government contracts and higher operating costs due to a weakening Australian dollar.
Managing director Simon Wild said in a statement it was a sad day for the business, its staff and the passengers and communities of north Queensland.
Mr Wild said the company made its own decision to close due to an uncertain future.
He said Skytrans ceased trading on Friday to ensure it could maximise its cash reserves for staff redundancies, suppliers and passenger refunds.
"For exactly 25 years and one day, Skytrans has had the privilege to serve regional Queensland from its home base in Cairns," he said.
04 Jan, 2015
Gambia Bird closes operations
News reports state that Gambia Bird Airlines has suspended commercial flight operations until further notice.
A statement from the airline said: “We wish to express our sincere regrets for disrupting the travel plans of those of our esteemed guests who are booked on the suspended flights.”
It explained: “We further wish to confirm that we will provide a full refund of all tickets purchased prior to today’s flight suspension.”
Gambia Bird Airlines said it would comply with all obligations and that it will provide all necessary support services to passengers affected by the flight suspension.
All passengers holding a valid ticket are kindly asked to contact their respective travel agency for further advice and information or to get in touch with Gambia Bird Airlines’ Customer Relations at firstname.lastname@example.org or call:
Banjul +220 690 0909
Accra +233 303 93 46 93
Dakar +221 33 889 4319
Barcelona +34 9311 366 36
London +44 (0) 12 93 822 922
03 Jan, 2015
TigerAir Mandala files for bankruptcy
News reports state that Budget carrier PT Mandala Airlines has filed for bankruptcy at the Central Jakarta Commercial Court, as it is no longer able to operate or pay its debts.
The company decided to file the case on Dec. 9 in a bid to rescue the interests of shareholders and creditors, to whom it owed Rp 1.5 trillion (US$120.45 million) and Rp 7 billion, respectively, Mandala Airlines lawyer Zaky Tandjung said on Monday.
“This act is to show that we have good faith,” he said as quoted by kontan.co.id. However, Zaky declined to explain why the total amount of its debts was lower than the Rp 2.4 trillion detailed in the 2011 debt postponement petition (PKPU).
09 Dec, 2014
UT Air files for bankruptcy
News reports state that Russian lender Alfa-Bank, has filed four new lawsuits against the country’s leading regional carrier UTair and UTair-Leasing. This comes a day after a leasing company filed a bankruptcy petition saying UTair failed to pay $67,000 for leased airplanes.
In late November, Alfa-Bank sued the airline in a Moscow court for an unpaid debt of $11.85 million. On Tuesday, court bailiffs seized UTair’s seven Mi-8 helicopters, TASS reports.
UTair on Monday rejected the bankruptcy reports in the media, saying it was operating in “standard mode.”
“We aim to constructively fix all the financial problems. Filing a bankruptcy petition is a standard tool used by the creditors that have a small amount of debt to claim,” Andrey Martirosov, UTair CEO said.
On Monday, UTair settled part of its $67,000 million debt to Avialeasing, TASS said. It had filed a bankruptcy petition against the carrier, claiming the airline had failed to pay the leases on a number of Tu-154-M planes.
Currently UTair is being sued for more than $13 million.
UTair is the third airline in terms of passenger traffic in Russia. The total debt of the company is about $1.1 billion (60 billion rubles). UTair revenue for the first half of 2014 amounted to $600 million (32.8 billion rubles) with net profit of $100,000 (5.5 million rubles).
01 Dec, 2014
Malaysian Airlines losses widen further
News reports state that Malaysia Airlines said today that its third-quarter loss widened 54 per cent in the wake of two devastating air disasters that have sent its business into a tailspin and prompted a government rescue. The company's net loss for the three months ending September 30 reached USD 170 million, expanding from a 373.2 million ringgit deficit in the same period last year. The result marks the seventh straight quarterly loss for Malaysia Airlines, which already had struggled to stay competitive even before the mysterious loss of flight MH370 and the July 18 shooting down over Ukraine of flight MH17.
14 Nov, 2014
LATAM net loss
News reports state that (Reuters) - LATAM Airlines LAN.SN, Latin America's largest airline, on Thursday reported a larger-than-expected net loss for the third quarter, due to a fall in business travelers and cargo traffic during soccer's World Cup in Brazil and weakening regional economic growth.
A foreign exchange loss of $144 million, mostly due to a depreciating Brazilian real, also weighed on the carrier's bottom line.
The net loss was $107.8 million in the three months to the end of September, traditionally its strongest quarter, the company said. That compared with a profit of $52 million a year ago and market forecasts for a $1 million loss, according to a Reuters survey.
13 Nov, 2014
Kenya Airways first half loss
Kenya Airways swung into a first-half pretax loss after suspending flights to two Ebola-hit West African nations while attacks by Islamist militants in Kenya prompted Western countries to issue travel warnings, hurting the carrier's bookings.
The airline, which is part-owned by Air-France KLM , reported a pretax loss of 12.5 billion shillings ($140 million) for the period through September, including a paper loss of 5.4 billion shillings due to a writedown of planes being retired from its fleet.
Shares fell 15 percent to a session low of 7.60 shillings each after the results were released.
Mbuvi Ngunze, the airline's new chief executive, said bookings on long haul destinations like London plunged by as much as 40 percent during the peak summer holiday travel season as tourists shunned Kenya's coastal resorts. Kenyan authorities blame the attacks on militants from neighbouring Somalia.
"It meant that we actually didn't see the demand that normally comes with the peak season, when it is the main time that we make money," Ngunze told Reuters while expressing hope that bookings could improve as Kenya experiences fewer attacks.
Ngunze said the airline's planes were 64 percent full, lower than 69 percent in the corresponding period a year ago. Kenya Airways added an extra 800 passenger seats during the period, buying new Boeing Dreamliners and B777-300S.
Ngunze blamed the outbreak of the Ebola virus in three West African nations for the poor performance. The carrier stopped its flights to Liberia's capital Monrovia and Sierra Leone's Freetown in August due to fears of Ebola, at a likely cost of 3-4 percent of its annual revenue or $40 million.
"The biggest concern is that even in Kenya we talked up Ebola as if it was in this country and that has a direct impact. Actually people stopped flying to Kenya," he said.
13 Nov, 2014
Flybe swings to loss
News reports state that (Reuters) - LATAM Airlines LAN.SN, Latin America's largest airline, on Thursday reported a larger-than-expected net loss for the third quarter, due to a fall in business travelers and cargo traffic during soccer's World Cup in Brazil and weakening regional economic growth.
A foreign exchange loss of $144 million, mostly due to a depreciating Brazilian real, also weighed on the carrier's bottom line.
The net loss was $107.8 million in the three months to the end of September, traditionally its strongest quarter, the company said. That compared with a profit of $52 million a year ago and market forecasts for a $1 million loss, according to a Reuters survey.
12 Nov, 2014
GOL Airlines increased losses
News reports state that Brazilian airline Gol Linhas Aereas SA on Tuesday posted a third-quarter loss of 245.1 million reais ($95.87 million), above the loss of 197 million reais recorded in the same quarter last year.
04 Nov, 2014
Finnair losses increases
News reports state that Finnair Group reported a net profit of €16.6 million for the third quarter ended Sept. 30, down 38.3% from €27 million for the same period last year.
Operating profit was down 40.7% for the period, to €23.6 million from €39.8 million in the year-ago period.
The airline group attributed the disappointing performance to the strengthening of the euro against several revenue currencies, the ongoing weakness of the Finnish and eurozone economies, tumbling unit revenues, and declining cargo revenues.
14 Oct, 2014
News reports state that Budget airline PEOPLExpress remains grounded on the Peninsula, but there’s new hope that it will take off soon.
The Newport News-based airline cancelled all flights at the end of September, after both planes it leased from Vision Airlines were grounded because of maintenance issues. The plan was for PEOPLExpress to be back up and running by this Thursday, October 16, but the airline announced recently that it won’t meet that goal.
Peninsula Airport Commission Chair Jim Bourey told WAVY.com he’s now hoping the airline will be back in the air by November.
“I would hope to see, and I would think PEOPLExpress would hope to be flying in November, certainly by mid-November, to be able to take advantage of the holiday season,” Bourey said. “We’re not sure that’s going to happen. We certainly hope that’s going to happen.”
As the airline continues to refund customers for cancelled flights, Bourey said the Peninsula Airport Commission, airport director and airline CEO are in constant conversation, all in hopes of getting PEOPLExpress off the ground again.
03 Sep, 2014
Aeroflot dives into loss
News reports state that leading Russian airline Aeroflot dived into loss in the first half of the year, buffeted by the problems afflicting the Russian economy, the group said.
The Russian economy is experiencing sharp slowdown, severely exacerbated by Western sanctions against Russia’s support for separatists in eastern Ukraine.
The slowdown, sanctions, and a fall of the ruble which raises the cost of foreign travel and holidays, have undermined travel agencies and put the brakes on recent 20-percent annual growth of air-passenger traffic.
Several travel agencies have gone bankrupt, stranding passengers abroad.
Aeroflot, which is controlled by the state, reported a net loss of 1.9 billion rubles (40 million euros, $53.0 million) in the first six months of the year from a profit of 45 million rubles in the same period last year.
The company has achieved firm growth and rising profits in recent years.
The airline, a member of the SkyTeam alliance with Air France-KLM, reported an operating loss of 1.4 billion rubles from a profit of 5.2 billion rubles at the same time last year.
Underlying operating profit as measured by earnings before interest, tax, depreciation and amortization, a key measure of performance, dropped 54.0 percent to 5.0 billion rubles.
“Slower economic growth rates in Russia, combined with significant one-off factors, had a negative effect on the group’s financial results in the first half of 2014,” deputy CEO Shamil Kurmashov said in a statement.
But the airline had outpaced market trends on some counts, he said, and sales rose by 9.4 percent to 140.3 billion rubles (2.9 billion euros), driven by a 10.3-percent rise in sales from passenger traffic.
But operating costs rose by 15.2 percent, mainly because of the addition of new aircraft, either bought or leased.
02 Sep, 2014
China Eastern Airlines profits plummet almost 100%
News reports state that China Southern Airlines, the country's largest carrier by fleet size and passenger volume, posted a first-half loss of 1.02 billion yuan (HK$1.28 billion), as mainland airlines were hit hard by exchange losses caused by unprecedented depreciation of the yuan this year.
Interim profit at rival China Eastern Airlines Corp plunged 97.7 per cent from the same period last year to 14 million yuan.
Revenue growth of 9.15 per cent to 50.21 billion yuan at Guangzhou-based China Southern Airlines did not prevent it from sliding into the red after reporting a profit of 302 million yuan in the same period last year.
The airline carried 47.39 million passengers, 8.19 per cent more than last year, though the passenger load factor dropped 0.9 percentage point to 79.2 per cent.
Revenue at Shanghai-based China Eastern rose 2.68 per cent to 42.59 billion yuan. It carried 40.42 million passengers, up 6.94 per cent. Both airlines blamed exchange losses for their disappointing performance.
China Southern, which derives more of its revenue from international and long-haul routes than China Eastern, said "special circumstances" also affected its Southeast Asian and Xinjiang routes.
Mainland airlines are prone to currency risks as they have yuan-based revenue and dollar-based debt for their aircraft purchases and leases.
China Eastern said it had interest-bearing foreign currency debt equal to 66.71 billion yuan at the end of June, 96.2 per cent of which was in US dollars.
"As a result, large fluctuations in the exchange rate caused large translation losses and affected our profitability and development," the firm said.
The yuan declined as much as 3.39 per cent against the US dollar in the first four months of the year after steadily appreciating in the past decade.
Passenger yield, which measures per unit profitability of airlines, declined 1.69 per cent to 58 fen at China Southern and rose 0.17 per cent to 60 fen at China Eastern.
Both airlines said the second half, traditionally busier, remains filled with challenges and opportunities as travel demand hinges on the outlook for the Chinese economy.
The other Big Three state-owned carrier, Air China, reported a 55.42 per cent drop in earnings on Tuesday.
29 Aug, 2014
Virgin Australia posts triple losses
News reports Virgin Australia Holdings has posted an after-tax loss of A$355.6m ($332.6m; £200.5m) for the full year ending in June.
The result is more than triple the firm's previous year's loss of A$98.1m.
The carrier blamed weak consumer sentiment, overcapacity in the market and carbon tax costs for the loss.
Virgin also said on Friday that it would sell a 35% stake of its frequent flyer program to a private equity firm, valuing the program at A$960m.
The carrier, which is Australia's second largest behind Qantas, said ongoing uncertainty around the economy had also contributed to its full year loss and that it would not provide a forecast for the following financial year.
Virgin's underlying loss for the year of A$211.7m was in line with market expectations.
28 Aug, 2014
Air China profits plunge by 55.4%
News reports state that Air China Ltd. (753), the country’s largest airline by market value, posted a 55.4 percent drop in profit in the first six months of the year as a weaker yuan inflated overseas debt payments.
Net income declined to 510 million yuan ($82.9 million) in the six months ended in June from a year ago based on international accounting standards, the Chinese flag carrier said in a statement to the Shanghai stock exchange. The profit was in line with the 55 percent to 65 percent decline forecast by Air China on July 14.
The yuan fell more than 2 percent against the dollar in the first half of this year, driving up costs for Air China, which has 70 percent of its debt denominated in the greenback at the end of 2013. Foreign exchange losses are expected to also weigh on the earnings of China Eastern Airlines Corp. (670) and China Southern Airlines Co. (1055), which are slated to report first-half results later this week.
“Chinese airlines’ earnings are very sensitive” to the exchange rate, Patrick Xu, a Hong Kong-based airline analyst with Barclays, said in a note dated Aug. 20. “The earnings impact mainly comes from marking-to-market U.S. dollar-denominated debt and hence is mostly non-cash.”
Air China shares fell 1.8 percent to close at HK$4.88 in Hong Kong before the earnings announcement. The stock has dropped 16 percent this year, compared to a 7.6 percent gain in the benchmark Hang Seng Index.
28 Aug, 2014
Malaysian Airlines shares suspended
News reports state that Shares in Malaysia Airlines, the company hit by two air disasters this year, have been suspended ahead of a significant announcement.
The suspension of share trading comes ahead of the announcement of the airline's plans for restructuring, which could include job cuts and a change in top management.
Khazanah Nasional, which owns 70 per cent of the carrier, will hold a press conference later on Friday.
Major changes at Malaysia Airlines were foreshadowed earlier this month following the twin disasters of flights MH370 and MH17.
Flight MH370 disappeared on March 8, possibly over the Southern Ocean, and Flight MH17 was shot down on July 17 while flying over rebel-held eastern Ukraine.
A total of 537 passengers were killed in the two aviation tragedies.
Malaysia Airlines has reported a net loss of $104 million in its second quarter and said its earnings in the second half would be hit by lower passenger bookings after the two disasters this year.
The airline is expected to be de-listed and privatised.
Khazanah Nasional has previously said it would purchase all minority shares in the flag carrier and finalise a restructuring plan by the end of August.
27 Aug, 2014
Tarom Airlines still in the red
News reports state that Romania’s state owned airline Tarom expects EUR 26 million losses this year, according to the 2014 budget which was recently approved by the Government.
Tarom ended each of the last six years with losses, which totaled some EUR 270 million for the period. Not even the appointment of the private management didn’t bring the company to profit. In 2013, Tarom posted a EUR 29.4 million, 43% lower than in 2012.
Belgian Christian Edouard Heinzmann was appointed CEO of Tarom in November 2012, but in 2013 the company’s administration board wanted to fire him. In the end, the Transport Ministry decided to fire the board and keep Heinzmann as CEO.
Tarom’s budget that was approved by the Government features total revenues of EUR 350 million, 22% higher compared to those in 2013, which were EUR 288 million. These would be the highest revenues for Tarom since 2008.
The company’s total costs are also expected to rise to EUR 377 million, up 19% compared to 2013 (EUR 317 million).
27 Aug, 2014
Qantas suffers a huge $2.8 BILLION loss
News reports state that Qantas has suffered a huge $2.8 billion loss in the wake of the airline’s profit-draining battle with rival Virgin and another poor performance from its international division.
The airline posted a net loss of $2.84bn for the year to 30 June, compared with a $1m profit a year ago.
The result included a $2.6bn writedown to the value of its ageing international fleet.
Excluding the writedown and other one-off costs, Qantas made an underlying pre-tax loss of $646m, compared with a $186m profit a year ago.
Chief executive Alan Joyce described the result as “confronting”, but said the massive loss represented the year that is past.
“We have now come through the worst,” he said in a statement on Thursday.
“With our accelerated Qantas transformation program we are already emerging as a leaner, more focused and more sustainable Qantas group.”
The airline has ruled out selling or floating its profitable frequent flyer business, Qantas Loyalty, to fund its turnaround.
“After careful consideration, our judgment was that Qantas Loyalty continued to offer major profitable growth opportunities, and there was insufficient justification for a partial sale,” Joyce said.
Qantas has also decided to separate its domestic and international arms, creating a new corporate entity for Qantas International.
Joyce said the Qantas Sale Act, recently passed by the federal parliament, had paved the way for the structural separation.
“This will have no impact on the day-to-day operations, network or staffing at Qantas International,” he said.
The carrier announced it would write down its entire fleet of Boeing 747s and A380s, at a value of $2.6bn.
The airline’s international division remained the biggest drag on the company, suffering an underlying loss of $497m for the year, more than double the $246m loss it posted a year ago.
Qantas attributed the result to increased competition from other carriers and record fuel costs.
Its discount carrier, Jetstar, made a $116m loss after losses from its Asian operations offset profits from its Australian division.
Qantas domestic saw its underlying earnings slump from $365m to $30m as a result of a bruising capacity war with Virgin.
The airline has been increasing capacity in an effort to maintain its 65% market share against a challenge from Virgin.
Critics were quick to lambaste Qantas for the result, including the former prime minister Malcolm Fraser, who took to Twitter to criticise Joyce soon after the results were released.
“Qantas chief Alan Joyce has many questions to answer. Board made foolish decisions, being eaten by Emirates,” he said in a tweet.
Qantas Loyalty was easily the most profitable part of the business, lifting underlying earnings from $260m to $286m during the year.
The airline’s frequent flyer program had 10.1 million members by 30 June.
Fuel costs across the company’s operations climbed by more than $250m to $4.5bn, and Qantas expects them to remain around the same level during the first half of 2014-15.
Qantas ruled out any new Jetstar ventures in Asia while it tries to get itself back to profitability, but Joyce was confident of the future of its operations in Singapore and Japan.
“In the world’s fastest growing aviation market, this is a major long-term opportunity that we continue to believe in,” he said.
“No new Jetstar ventures will be established while the group is focused on transformation, but we know that substantial value exists across the Jetstar airlines and we will realise that value over time.”
Qantas said it would be making no further job cuts beyond the 5,000 already announced as part of its $bn three-year restructuring plan.
25 Aug, 2014
Wasaya Airways losses continue, future not looking good
News reports state that near the end of July the chief of Fort Severn First Nation in northern Ontario went on the local radio and told the community Wasaya Airways was in trouble with growing debt, adding the future didn’t look good for the company that has been serving them for over a decade.
“It is my understanding from the last meeting that things will not work out. It has had problems for a while,” Chief Joseph Crowe told the radio audience July 25 in Cree, which was translated for this story.
The current status of Wasaya was discussed at a recent shareholders meeting in Thunder Bay where Wasaya management painted a bleak picture for the 12 chiefs that represent the communities that own the company.
APTN Investigates contacted Crowe Wednesday and he elaborated on the problem.
Crowe said management told the chiefs “Wasaya is going down” and was only surviving on a “special loan” from its bank.
One of the major problems is the chiefs have been racking up credit.
In December the tally was about $2.6 million and the chiefs were warned then too that Wasaya faced going bankrupt because of the excessive spending.
Crowe said that number has since grown to $3.1 million.
APTN was told Wasaya was having another meeting Thursday where a plan would be discussed to try and save the company.
But as an APTN investigation has found out, as we reported earlier this year, the financial instability of Wasaya has been going on for a number of years.
In 2012, Wasaya was losing money.
That year, the company lost $2 million and the chiefs were concerned.
21 Aug, 2014
Fly Romania insolvency
News reports state that Necessair Consulting, the company controlled by Ten Airways director Catalin Butu that could supply tickets to Fly Romania flights, has asked for its insolvency in the Bucharest Tribunal. The trial term has been set for September 3rf 2014. Tickets for Fly Romania can no longer be purchased on the website.
Two months ago, Fly Romania flights were being cancelled left and right. The number of tickets bought did not match the number of flights according to Fly Romania representatives. Initial plans of transporting over 100,000 passengers this year for revenues of EUR 15 million collapsed, and Fly Romania only carried 1,300 of passengers in its couple of months of activities, given that the air company had a capacity of 6,000 passengers per day.
On August 5, Romanian businessman Ovidiu Tender announced his airline Ten Airways has ceased its collaboration with airline Fly Romania over unpaid debts amounting to EUR 400,000.
“Fly Romania is a privately owned company where I am not a shareholder. It is the property of Catalin Butu, former CEO at Ten, and our association with him damaged us both financially and in terms of image″, according to Ovidiu Tender.
Ovidiu Tender believes the money needs to come from somewhere and if it’s a fraud then he will sue his former employee and current owner of Fly Romania.
15 Aug, 2014
Finnair expects a significant lose
News reports state that Finnair Oyj (FIA1S) predicted a “significant loss” for the full year after second-quarter earnings declined as increased competition on long-haul routes and a stronger euro weighed on sales.
The airline had a net loss of 24 million euros ($32 million) compared with profit of 17.9 million euros a year earlier, the Helsinki-based company said today in a statement. Revenue declined 7.2 percent to 565.7 million euros.
“The impact of the weak economic prospects in Finland on domestic demand and intensified international competition, particularly in long-haul traffic,” hurt sales, Chief Executive Officer Pekka Vauramo said. Expenses paid in U.S. dollars and revenue in Japanese yen also took a toll as the euro strengthened.
An uncertain economic outlook for Europe and Asia weakened demand, the company said. The 18-nation euro bloc posted zero growth last quarter as its three biggest economies failed to expand. Restructuring at the carrier’s aviation service unit and the sluggish performance of its tour operator Aurinkomatkat Suntours also hurt results. Finland’s biggest airline is looking to trim annual costs by 200 million euros this year.
Finnair shares fell 2.8 percent to 2.45 euros at 11:54 a.m. in Helsinki, taking the decline to almost 12 percent this year and giving the airline a market value of 314 million euros.
06 Aug, 2014
Fly Olympic files for bankruptcy
News reports state that British travellers have been left with worthless tickets and ruined holiday plans after Swedish carrier Fly Olympic AB filed for bankruptcy and cancelled all of its flights and existing reservations.
UK holidaymakers who are abroad without a valid return ticket have been advised to book a flight with a different airline and those with booked tickets are advised to contact their credit card users.
The carrier was not ATOL-protected, meaning passengers stranded abroad will not automatically be given flights home and those with tickets will not be given a refund by the Civil Aviation Authority.
ATOL protects travellers from losing money or being stranded abroad if the tour operator goes out of business. If a licensed firm goes out of business, the CAA can give refunds to people who can’t travel and arrange for people abroad to fly home.
Fly Olympic AB operated flights from London's Gatwick Airport to Eritrea and Somalia via Stockholm and Athens.
In a notice posted on its website, Asian Pacific/Fly Olympic AB informed customers that it had filed for bankruptcy after 25 years in business.
06 Aug, 2014
Skywest reports loss for the second quarter
News reports state that SkyWest, Inc (SKYW: Quote) Wednesday reported a loss for the second quarter compared to profit last year, primarily reflecting lower than expected performance incentive bonuses under the company's flying contracts and the unfavorable flying contract settlements, which in turn hurt revenue. The company posted net loss of $14.7 million or $0.29 per share compared with net earnings of $20.7 million or $0.39 per share, for the same period last year. On average, analysts polled by Thomson Reuters expected the company to report a loss of $0.21 per share for the quarter. Analysts' estimates typically exclude special items. Operating revenues were down to $816.6 million from $839.1 million a year ago. Wall Street expected revenues of $800.21 million.
01 Aug, 2014
Lufthansa struggles in second quarter
News reports state that Lufthansa has reported lower than expected second-quarter profit as ticket prices continued to fall on North American, Asian and European routes.
German flag-carrier Lufthansa also saw strike action weigh on results.
Lufthansa’s second-quarter operating profit was €359 million, below analyst expectations for €416 million, according to a poll from Reuters.
In the first half, strikes wiped off €60 million from profit in its core passenger airlines business.
“This quarterly performance was shaped by a number of one-off effects, such as strikes and currency devaluations.
01 Aug, 2014
Austrian Airlines profit drops 50%
News reports state that AUA Austrian Airlines, a unit of Germany's flagship carrier Lufthansa, saw its operating profit halve to EUR 10 million (USD 13.4 million) in Q2 as the company had to make reserves for the ongoing legal dispute over the collective agreement with the staff, AUA said without giving the amount of reserves.
AUA Airlines EBIT Halves to EUR 10 Mln in Q2 as Reserves Necessary / Picture: © Austrian Airlines
The group cut 2014 profit forecasts, among others due to the crises in Russia, Ukraine and Middle East: the number of passengers and sales have been falling there. AUA now expects a fullyear operating result at the level of last year (EUR 25 million) rather than the previously targeted improvement.
AUA had previously made no provisions for the dispute concerning the cancellation of the collective agreement with pilots and flight attendants two years ago.
In H1, AUA's operating loss widened to EUR 44 million from EUR 35 million gap a year earlier.
29 Jul, 2014
Volaris reports a second quarter net loss
News reports state that Volaris reported a second-quarter net loss of 75 million Mexican pesos, compared to profit of 173 million pesos, a year ago. Loss per share was 0.07 pesos, compared to profit of 0.22 pesos. Loss per ADS was 0.74 pesos, compared to profit of 2.15 pesos, previous year. Total operating revenues were 3.31 billion pesos, compared to 3.03 billion pesos, prior year. The company said operating revenues increased 9%, due to a seasonally stronger second quarter and non-ticket revenue growth. Volaris traffic (measured in terms of revenue passenger miles or RPMs) increased 14% in the second quarter 2014 year over year.
29 Jul, 2014
SkyWest shares fall on expected 2nd Quarter net loss
News reports state that shares of SkyWest Inc, which operates regional flights for bigger carriers, fell about 8 percent on Monday after the company warned it expected a second-quarter loss.
SkyWest said after markets closed on Friday that results would be lower than expected and forecast a loss of $12 million to $14 million, or 23 cents to 28 cents a share, for the second quarter. Analysts had expected a profit of 14 cents a share, on average, according to Thomson Reuters I/B/E/S.
The parent of SkyWest Airlines and ExpressJet Airlines, which carry passengers on behalf of Delta Air Lines Inc, United Continental Holdings Inc and American Airlines Group Inc, said it expected lower revenues because of missed incentives on metrics such as on-time performance under its contracts with major partners, and it also said the results would include changes in its tax provision because of the expected loss and write-downs of equipment.
SkyWest also said that U.S. Federal Aviation Administration rules requiring more rest for pilots and beefed-up qualifications for pilots to operate commercial jets were increasing its crew costs. Other regional carriers such as Republic Airways Holdings have said the newer FAA rules have hurt them by making qualified pilots harder to find, for example.
28 Jul, 2014
TigerAir $52.6 Million loss
News reports state that Singapore-based low-cost carrier (LCC) Tigerair Group reported an after-tax loss of SGD65.2 million ($52.6 million) for the quarter ended June 30, 2014 (1Q FY15), deepening the SGD32.8 million loss reported for the year-ago period (1Q FY14).
During the quarter, the airline reported an operating loss of SGD16.4 million, compounding the operating loss of SGD6.2 million reported for the year-ago period. Total revenue was down 28.4% to SGD169 million in 1Q FY15. Total expenses fell 23.5% to SGD185.4 million year-over-year.
The airline said the poor revenue performance was primarily due to the exclusion of Tigerair Australia from the group results after Virgin Australia acquired a 60% stake in the carrier last year.
In addition, Tigerair had to shoulder a SGD35.3 million share of the loss for the quarter of Tigerair Mandala, which ceased operations at the beginning of July. The group also recorded a SGD14.6 million provision for Mandala’s shutdown costs.
Tigerair Singapore reported an operating loss of SGD19.8 million for the first quarter of the current financial year, reversed from an operating profit of SGD5.9 million for the year-ago period. The airline said this was “nevertheless an improvement over the operating loss of SGD29.4 million recorded in the quarter ended March 31, 2014.”
28 Jul, 2014
Flybe Profits fall 11.9%
News reports state that UK regional carrier Flybe’s first-quarter revenue has fallen 11.9% as the airline continues to press ahead with restructuring.
During the first quarter ended June 30, Flybe generated £144.6 million ($246.8 million) in group revenue, down from £164.2 million in the prior-year period. Flybe CEO Saad Hammad described the performance as “in line with management expectations” and said the business is being prepared for future growth.
23 Jul, 2014
Air Uganda suspends operations
News reports state thatAir Uganda has indefinitely suspended operations after the Ugandan Civil Aviation Authority (UCAA) failed an ICAO audit and revoked its air operator’s certificate (AOC).
According to the airline, ICAO performed an audit between June 11-17, which identified shortcomings in the UCAA’s oversight and regulatory capacities.
In a statement, Air Uganda CEO Cornwell Muleya said the audit assessed the UCAA, rather than the airlines under its supervision. Air Uganda has held IATA Operational Safety Audit (IOSA) approval since 2011 and had been cleared for a further two years until 2015.
All AOCs issued by the UCAA were revoked June 17, grounding Air Uganda’s operations. “Each carrier was requested to submit a fresh application for an AOC, and in the meantime was required to cease operations, thus [being] forced to incur massive financial losses on a daily basis and suffer reputational damage,” said Muleya, who joined the airline last year.
He added that 31 days had passed since the initial grounding and recertification was still several weeks away. This has put the airline in breach of its lease contracts, which require its aircraft to continue flying.
“The extended period of the aircraft remaining grounded has thus, sadly, triggered these covenants and Air Uganda is now contractually obligated to return the aircraft to the lessors’ chosen facility abroad. The prolonged inability to generate any revenues has necessitated the airline’s board of directors to suspend indefinitely Air Uganda’s operations. This will unfortunately adversely impact key stakeholders, including the airline’s workforce,” Muleya said.
Air Uganda, which employs 231 staff, launched operations in 2007 at the request of the Ugandan government. It flew from its home base of Entebbe to Bujumbura, Dar es Salam, Juba, Kigali, Kilimanjaro, Mogadishu, Mombasa and Nairobi.
23 Jul, 2014
Norwegian Air Shuttle loss and decline in share price
New reports state that Norwegian Air Shuttle ASA (NAS.OS) Thursday swung to an operating loss in the second quarter as costs related to a the lease of aircrafts and a labour union strike offset higher passenger volumes.
Norway's budget airline swung to an operating loss of 85.1 million Norwegian kroner ($13.7 million) in the second quarter from a profit of 446.1 million kroner a year earlier. Still, it booked a quarterly net profit of 128.3 million kroner due to an income tax gain of 265 million kroner. In the year-ago quarter, net profit was 196.8 million kroner.
Revenue at Norway's budget airline rose to 5.04 billion kroner from 4.01 billion kroner while operating expenses swelled to 4.48 billion kroner from 3.13 billion kroner.
Norwegian, Europe's third-largest budget carrier by revenue, has rapidly expanded its international fleet capacity and opened several new bases in Europe in recent years.
Chief Executive Bjorn Kjos said the result reflects the expansion, including a 41% quarterly capacity increase and 16% passenger growth but also significant costs related to the start-up of its trans-Atlantic long-haul operation. Other one-off costs in the second quarter were related to the lease of aircrafts and a strike from the labour union Parat.
"There is also a high competitive pressure, particularly in the Scandinavian market," said Mr. Kjos.
21 Jul, 2014
Monarch faces continued recapitalisation
News reports state that the travel group behind Monarch Airlines and tour operator Cosmos is in talks with its Swiss owner to inject as much as £60m into the business amid continued tough trading.
Monarch Group, which is controlled by Switzerland’s Mantegazza family, is understood to be finalising its third recapitalisation within five years, The Sunday Telegraph has learnt.
Monarch has been forced to cut prices on its flights this year after a hoped-for recovery in the industry failed to materialise, and as rivals easyJet and Ryanair added more flights to their existing routes.
The family, led by patriarch Sergio Mantegazza, injected £75m into the business in 2011, just two years after putting a further £45m into the business.
The sources said that as part of conversations discussing debt financing options around the fleet deal, it became apparent that further equity was also needed. The expanded fleet will allow Monarch to continue to win new customers, as part of its network strategy focused on scheduled flights, rather than its traditional role as a charter carrier.
Monarch Group’s most recent results show the airline has been on the road to recovery of late, reporting a £5.9m pre-tax profit in the year to October 2013, after a £33m loss in the prior year.
However conditions in the travel industry continue to be tough, with overcapacity helping to push yields down, and operating costs continuing to rise.
The group – which also owns tour operators Avro and somewhere2stay – hired industry verteran Andrew Swaffield to run the airline in April of this year,
Monarch, which has a strong regional presence in the UK, flies from airports including Manchester and Leeds-Bradford.
A Monarch Group spokesman declined to comment.
18 Jul, 2014
China Airlines expects a 55% profit plummet
News reports state that Air China expects its first-half net profit to plummet 55% to 65% compared with the net income of CNY1.12 billion ($182 million) in the year-ago period.
According to Air China’s written statement released by Shanghai Stock Exchange, the carrier attributed the sharp decline to exchange losses resulting from yuan depreciation.
Earlier this week, China Southern Airlines also reported a first-half net loss of CNY900 million to CNY1.1 billion ($146 million to ($178 million) compared with a net loss of CNY302 million in the year-ago period.
Industry analysts point out that Chinese carriers rely on exchange gains to earn profits with yuan appreciation.
China Eastern is also expected to report first-half losses.
Looking ahead, China’s big three carriers are predicted to continue to report profit declines or operating losses in the second half.
09 Jul, 2014
KLM Air France profit warning send shares falling
News reports state that Air France-KLM profit warning bruised European airline shares on Tuesday, as the latest evidence of overcapacity set the stage for possible further job cuts.
Europe's second-largest traditional network carrier warned its 2014 profits could be as much as 12 percent lower than previously predicted, mainly as a result of overcapacity and resulting weak prices in both the passenger and cargo sectors.
Shares in the Franco-Dutch group fell more than five percent to 8.9 euros in early trading, reaching their lowest level since late February and dragging the European airline sector lower.
Its warning comes weeks after a similar jolt from Germany's Lufthansa, which warned on profit targets for 2014 and 2015 due to weaker-than-expected passenger revenue and cargo trends.
Among the factors it blamed were overcapacity on North Atlantic routes and competition from low-cost and Gulf carriers.
Since the Lufthansa statement, other smaller players have warned on profit such as Icelandair and Jet2.com (part of UK-listed Dart), SAS has said it will step up cost cuts while U.S. based Delta disappointed with its revenue figures.
"This warning is not entirely surprising given Lufthansa’s warning in June for the same reasons and the recent 21 percent decline in Air France-KLM’s share price," said Citi Research analyst Andrew Light in a note.
"We expect further restructuring actions to be announced later in the year."
European airline stocks were among the region's worst-performing shares, as the Air France-KLM profit warning spilled over to Lufthansa, whose shares fell 2 percent, and British Airways and Iberia parent IAG, whose stock dropped 4 percent.
Air France-KLM said the lower expected result - at 2.2-2.3 billion euros (1.7 billion pounds-1.8 billion pounds) down from previous guidance of 2.5 billion - still represented a 20 percent improvement on 2013 earnings before interest, tax, depreciation and amortisation.
"While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields," the airline said.
"This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the first quarter."
Air France-KLM is one of a number of airlines whose revenues remain blocked in Caracas because of a currency-related dispute.
The government requires airlines to sell tickets in the local bolivar currency, but has been slow to allow repatriation of funds under strict foreign currency controls.
A company official said the airline was owed some $290 million as a result of the dispute, out of a total estimated in May at $4.2 billion by the Venezuelan Airlines Association.
He said the cargo and Venezuela factors represented about half the resulting profit guidance adjustment together, with the fall in passenger yields accounting for the other half.
There has been talk Air France-KLM will sell all or part of its Martinair cargo division.
03 Jul, 2014
Livingston Arlines license suspended due to financial problems
News reports state that Italian carrier Livingston has staved off an attempt by ENAC, the country’s civil aviation regulator, to suspend its operating licence.
Privately-owned Livingston operates three Airbus A320s on scheduled and charter services from its base at Milan Malpensa.
ENAC announced last week that it planned to withdraw the airline’s permission to operate from July 14, “given the obvious financial problems faced by the company.”
The company – its formal name is New Livingston, although its aircraft operate under the Livingston title – found itself in difficulties following the bankruptcy of one of its debtors, airport operator Aeradria.
This was exacerbated by the decision of the Sardinian regional government to withdraw a licence for a PSO route operated by Livingston between the Sardinian city of Alghero and Rome Fiumicino.
Livingston applied to Court of Busto Arsizio for a ‘procedura di concordato preventivo con riserva’, the Italian equivalent of Chapter 11 protection, “to overcome a temporary financial crisis.”
It also applied to ENAC to revoke the suspension of its licence. It pointed out to the regulator that it had bookings for more than 400,000 passengers over the summer holiday period, which were expected to generate “significant positive cash flows.”
The carrier announced late Monday night that the court had appointed a ‘judicial commissioner’ to oversee its financial restructuring process and that ENAC had withdrawn its threatened suspension. This meant that services would continue as normal past the previous 14 July cut-off point.
Livingston spokeswoman Silvia Ruscitto toldATW Tuesday that the granting of bankruptcy protection would give it breathing space to reform its finances.
She said that Aeradria, the operator of Rimini airport, had guaranteed Livingston’s operations after it stepped in two years ago to take over flights from the eastern Italian airport to Russia following the demise of fellow Italian carrier Windjet.
She added that Livingston was seeking some $8 million that the airline claimed was owed by the Sardinian regional government. “We have a claim against them in progress,” she said.
The Alghero-Rome route is heavily seasonal, losing money in the winter but solidly booked in summer as Italians head to the Mediterranean island for holidays. The flights ceased June 6, just as the summer season was getting underway.
* Under IPP's Insurance cover is excluded for all insurance or tickets issues on or after 3rd July 2014
26 Jun, 2014
Fly Dalmation ceases trading
News reports state that Dalmatian (DLN, Split) has suspended operations after one of its investors reportedly pulled out at the last moment.
26 Jun, 2014
FastJet widens its losses
News reports state that FastJet Plc (FJET) said its operating loss widened in the first full year of flying after the discount carrier took steps to expand from Tanzania into South Africa, Zambia and Zimbabwe in a bid to build a pan-African carrier.
Losses reached $47.6 million, or $79.1 million including charges for restructuring forerunner Fly 540, while sales more than doubled to $53.4 million, London-based FastJet said today.
FastJet said in April it would raise 15 million pounds ($25 million) from share sales to fund growth, with EasyJet Plc (EZJ) founder Stelios Haji-Ioannou injecting cash to get 10 percent of the business. Capacity reached 60,000 seats in May, up 11 percent from a year earlier, though yields are under pressure from price cuts at Air Tanzania and Precision Air Services Ltd.
“Although the yield is at a level which could provide a profitable operation, resources are not being utilized fully,” Chief Executive Officer Ed Winter said in today’s statement. “Higher frequencies and more international routes are being progressively introduced to increase aircraft utilization.”
FastJet had an average load factor of 72 percent for the year, meaning its planes flew almost three-quarters full. Some 95 percent of planes are operated to schedule, an unusual display of reliability in Africa, where flights can commonly be hours late or be scrapped altogether at the last minute.
21 Jun, 2014
Virgin America posts a first quarter net loss of $22.4 million
News reports state that Virgin America incurred a first-quarter net loss of $22.4 million, narrowed from a net deficit of $46.4 million in the 2013 March quarter, on a 4% rise in revenue to $313.4 million.
The quarterly net loss followed the San Francisco-based carrier’s first full year of profitability in 2013. President and CEO David Cush pointed out the first quarter marked the sixth consecutive quarter in which Virgin America has improved its financial results year-over-year. He also noted that Virgin America was hit hard during the quarter by the severe winter weather in the US northeast since the transcontinental-oriented carrier generates 30% of its revenue from the New York market.
Virgin America’s first-quarter expenses rose 3.2% year-over-year to $326.5 million. Operating loss was $13.1 million, narrowed slightly from an operating deficit of $15 million in the 2013 March quarter. First-quarter traffic increased 5.6% year-over-year to 2.2 billion RPMs on a 3% lift in capacity to 2.78 billion ASMs, producing a load factor of 79.2%, up 1.9 points. Yield decreased 2.8% to 12.56 cents.
12 Jun, 2014
Shares in Lufthansa nosedive on profit warning
News reports state that Shares in Lufthansa AG are down almost 13 percent after the German carrier issued a profit warning.
The airline said in a statement Wednesday that it is lowering its operating profit forecast to 1 billion euros ($1.35 billion) this year and 2 billion in 2015.
Lufthansa had previously predicted an operating profit of between 1.3 billion and 1.5 billion euros for 2014, and 2.65 billion euros next year.
The company says it lowered its forecast because of weaker passenger and freight demand, the impact of strikes and the fall in the value of Venezuela's currency.
Lufthansa shares stood at 17.41 euros during mid-morning trading on the Frankfurt exchange.
28 May, 2014
Jet Airways group reports a loss of $689 million
News reports state that India’s Jet Airways group has reported a consolidated loss of Rs 42 billion ($689 million) for the financial year April 2013 to March 2014, widened from Rs 7.7 billion in the prior-year period. The highest-ever loss for India’s second-largest airline was on a total income of Rs 194.4 billion ($3.2 billion), which rose marginally from Rs 190 billion in the same period last year.
The Jet Airways board met in Mumbai on Tuesday and agreed to a series of measures they hope will rebuild the business. The board announced the appointment of former Air Seychelles CEO Cramer Ball as the new CEO. Etihad Airways president and CEO James Hogan, and CFO James Rigney, attended Jet’s board meeting for the first time after an equity deal between the two carriers received regulatory approvals.
Jet chairman Naresh Goyal said, “We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short-term solutions. The changes required will take time to implement.” Jet has established a taskforce to implement a major restructuring of the business.
Continuous losses for the last seven years, largely on the airline’s Boeing 737 domestic routes, have eroded its net worth substantially. Investors are hoping Etihad will help recapitalize the airline. In a statement to the stock market, James Hogan said, “We are delighted to be investing in Jet Airways at this critical point in its history. We are a long-term strategic investor and [are] committed to supporting Jet Airways as it re-engineers its business to achieve sustainable profitability. The opportunities and benefits for both carriers are enormous.”
Indian carriers have been posting higher losses; growing discounting practices have put pressure on yields. Competition is likely to get tougher as two new airlines expect to launch in the next year.
24 May, 2014
Pegasus Airlines widened loss
News reports Turkey’s fast-expanding low-cost carrier (LCC) Pegasus Airlines recorded a first-quarter net loss of TL104.5 million ($50.2 million), widened sharply from a deficit of TL6.3 million in the year-ago quarter.
First-quarter revenue jumped 36% to TL512 million from TL377 million year-over-year, with ancillary sales per passenger rising significantly to TL27.3 from TL19.5 in the same period last year.
Pegasus carried 4.08 million passengers in the quarter, up 25.4% year-over-year.
CEO Sertac Haybat said the first quarter of the year is always a difficult one for LCCs. “Due to seasonality and the recent fluctuation in the exchange rates, I can say that this really has been a tough period for the sector. As a result, the first quarter was not a profitable period for us,” he said.
22 May, 2014
Air Asia loss
News reports state that Malaysia’s AirAsia X reported a first-quarter net loss of MYR11.3 million ($3.5 million), reversing a net profit of MYR50.2 million for the year-ago period.
The long-haul, low-cost affiliate of the AirAsia Group said that, despite a 60.1% increase in capacity—its highest ever year-over-year quarterly capacity growth—to 6.2 billion ASKs, the carrier saw revenue rise 40% to a record MYR750 million for the quarter. Capacity growth is expected to taper off in the coming quarters, in line with the carrier’s aircraft delivery commitments.
AirAsia X CEO Azran Osman-Rani said, “The aggressive capacity expansion phase we undertook … is starting to bear fruit. We’ve proven we can stimulate new demand and achieve a market leadership position. As new capacity typically takes 12 months to reach breakeven, we expect to see yield improvement and an earnings turnaround in the second half of this year, after the seasonally weakest second quarter, and taking into account the aviation industry starting to stabilize its capacity roll-out.”
First-quarter operating expenses increased 64.1% to MYR786 million compared to the year-ago period. While many cost items—such as fuel, aircraft and engineering—were adversely affected by the decline in value of the Malaysian ringgit against the US dollar, costs for controllable items fell 12% year-on-year as a result of cost control initiatives and scale advantages.
20 May, 2014
Thai Airways reports heavy losses of $804 million
News reports state that Thai Airways reported a first-quarter net loss of THB2.62 billion ($804 million), reversed from a net profit of THB8.29 billion in the year-ago period. The airline said it was “prominently impacted” by recent political unrest in Bangkok.
First-quarter operating revenue was THB49.5 billion, down 11.6% while expenses were up 0.4% to THB51.8 billion, producing an operating loss of THB2.23 billion.
Thai said the losses were mainly driven by the dramatic slowdown in visitors to Thailand. This quarter it reported carrying 4.81 million passengers, down 15.3% year-over-year. MRPKs were down 12.6% to 14.68 billion. Load factor fell 9.7 points to 70.1%. Yield was down 1.1 %.
15 May, 2014
LATAM Airlines Group first quarter net loss of $41.3%
News reports state that Santiago-based LATAM Airlines Group has reported a first-quarter net loss of $41.3 million, reversed from a net income of $42.7 million in the year-ago quarter. The company said the results were due to non-recurring costs related to fleet restructuring. Excluding the one-off costs, it made a net profit of $80.7 million, up 88.7% over a net profit of $42.7 million in the year-ago quarter.
The oneworld member is the merger created between Santiago de Chile-based LAN Airlines and Brazil’s TAM Airlines in 2012.
First-quarter revenue was $3.2 billion, down 6.8% year-over-year, which the company attributed to a 6.4% decrease in passenger revenues and a 12.5% decrease in cargo revenues, partially offset by an 11.6% increase in other revenues. Expenses for the quarter were down 7% to $3.1 billion, producing an operating income of $112.6 million, down 1.4% year-over-year.
15 May, 2014
Air Berlin increased losses for first quarter of $288 million
News reports state that Airberlin reported a first-quarter net loss of €209.8 million ($288 million), widened from a net loss of €196.3 million in the year-ago quarter.
First-quarter operating loss was €182.8 million, narrowed from an operating loss of €188.4 million in the year-ago period. Group revenue fell to €761.8 million, down 3.8% year-over-year, which the company attributed to the shift of Easter business to April.
The airline said favorable cost development created a slightly improved operating result in a difficult market environment with high pressure on capacity utilization; yield was slightly better than the previous year.
“There is no doubt of the need for fundamental change and working on developing a sustainable business model,” CEO Wolfgang Prock-Schauer said in a statement.
Revenue per ASKs fell to 6.54 euro cents from 7.10 euro cents in the year-ago quarter.
Airberlin said it was able to reduce costs per ASKs by 8.2%, ex-fuel, compared to the same period last year. CASK was down 8% year-over-year.
Airberlin said its cost-cutting Turbine turnaround program demonstrated tangible effects in the first quarter.
“We have improved our cost structure … this year, we will be focusing particularly on increasing our turnover and will be substantially assisted by a new revenue management system,” Prock-Schauer said.
The oneworld member will receive support from external consultants to develop a viable and sustainable business model and a detailed plan for its implementation.
Abu Dhabi-based Etihad Airways, which owns a 29.2% stake in airberlin, has assigned two of its executives to oversee airberlin’s restructuring process.
Airberlin raised €252 million from the issuing of new bonds as part of its recently announced recapitalization program to return to profitability.
Airberlin said the recapitalization, in the amount of €550 million, should strengthen its equity capital and liquidity position for the long term.
In 2013, the German carrier reported a full-year net loss of €315.5 million.
15 May, 2014
Malaysia Airlines losses widen by 59%
News reports state that Malaysia Airlines has seen its losses widen after Flight 370 vanished over two months ago, raising questions about the future of the 76-year-old carrier.
The company's net loss rose by 59% to 443m ringgit ($138m; £82m) in the January-to-March period, marking its fifth straight quarter of losses.
The firm attributed it to "tough operating conditions" and "negative sentiment".
Investors shrugged off the news with shares rising 2.4%.
Only 30% of the company is able to be bought freely on the stock exchange in Kuala Lumpur, with the rest held by state investment firm Khazanah Nasional.
Of the 30% that trades on Malaysia's stock exchange, most of that is owned by the country's pension funds and other institutions, leaving a small proportion for retail investors to trade.
Overall though, the firm has lost more than 40% of its market value this year.
12 May, 2014
Turkish Airlines reports a first quarter loss of $108.7 million
News reports state that Turkish Airlines has reported a first-quarter net loss of TRY226 million ($108.7 million), which the company attributed to seasonality factors and foreign exchange rate movements.
09 May, 2014
SkyWest posts a net loss of $22.9 Million for the first quarter
News reports state that Utah-based SkyWest Inc., parent of regional carriers SkyWest Airlines and ExpressJet Airlines, incurred a first-quarter net loss of $22.9 million that it largely blamed on severe winter weather.
The company had previously warned that 21,000 weather-related flight cancellations during the three-month period ended March 31 would negatively affect its financial results. The first-quarter net loss was reversed from a $3.2 million net profit in the prior-year period.
“As a result of these flight cancellations, SkyWest not only experienced a negative effect on total operating revenues due to block hours not flown, but also experienced increased total operating costs due to its obligations to pay flight crews for canceled flights, as well as incurring additional maintenance and other expenses from the negative effects of the severe weather,” SkyWest said in a statement.
The company’s first-quarter revenue declined 3.9% year-over-year to $772.4 million while expenses rose 1.6% to $800.2 million, producing an operating loss of $27.8 million, reversed from an operating profit of $15.6 million in the 2013 March quarter.
SkyWest’s first-quarter traffic increased 0.4% year-over-year to 7.28 billion RPMs on a 2.2% cut in capacity to 8.99 billion ASMs, producing a load factor of 80.9%, up 2.1 points. Yield declined 3.7% to 10.4 cents as block hours flown dropped 4.4% to 546,813.
09 May, 2014
Lufthansa posts a net loss first quarter of €252 million
News reports state that Lufthansa Group posted a first-quarter net loss of €252 million ($351 million), narrowed from a net loss of €458 million in the year-ago quarter.
The company said the results were due to continued progress with its SCORE results-enhancement program.
In what is traditionally the weakest quarter of the year, the company posted operating losses of €245 million, narrowed from a €359 million operating loss in the first quarter of 2013.
First-quarter revenue fell 2.5% to €6.5 billion and operating income was €7 billion, down 2.5% year-over-year. At the same time, total first-quarter operating expenditure was reduced 6% to €7.2 billion compared to the year-ago period.
08 May, 2014
Tigerair losses continue
News reports state that Tigerair is further restructuring its operation in a bid to turn around its sagging financial performance. The Singapore-based low-cost carrier group incurred a net loss of SGD223 million (USD177 million) in the year ending 31-Mar-2014 compared to a loss of SGD45 million (USD36 million) the prior year.
Market conditions in Singapore have become challenging with excessive capacity levels provoking a reduction in yields and load factor. Tigerair Singapore reported an operating loss of SGD59 million (USD47 million) in FY2014 compared to a profit of SGD57 million (USD46 million) in FY2013.
All of the group’s overseas affiliates continue to be unprofitable, dragging down Tigerair’s bottom line and forcing the group to adjust its fleet plan. The situation at its Indonesian affiliate is particularly challenging, prompting the group to look at divesting its investment in Tigerair Mandala. The group is grounding five of Mandala’s nine A320s and three of the five aircraft being returned from Tigerair Philippines. The removal of the eight aircraft along with the Mar-2014 cancellation of nine A320 orders which would have been delivered in FY2015 and FY2016 are two components of a turnaround initiative
08 May, 2014
Norwegian Air Shuttle widens losses
News reports state that budget carrier Norwegian Air Shuttle has reported a first-quarter pre-tax loss of NOK813 million ($137 million), widened from a pre-tax loss of NOK160.1 million reported for the same period last year.
The airline said that, despite strong growth in passenger numbers and a high load factor, the additional costs of wet-leasing replacement aircraft on long-haul routes, as well as a weaker Norwegian currency had adversely impacted results.
Total revenue for the first quarter was NOK3.55 billion, up 22% year-over-year, while the number of passengers carried grew 24% to 4.9 million. RPKs were up 50% to 7.3 billion, and ASKs were up 48% to 9.4 billion. Load factor was also up one point to 77%, but yield was down 22%.
In addition, costs were up by a significant 53% to NOK4.2 billion from NOK2.7 billion during the year-ago period, with technical maintenance costs (+67%), general and administrative expenses (+62%), leasing costs (+60%), handling charges (+49%), aviation fuel (+48%), sales and distribution expenses (+46%), and airport and air traffic control charges (44%) accounting for the greatest increases.
02 May, 2014
Volaris posts an increased net loss of $28.3 million
News reports state that ultra low-cost carrier (ULCC) Volaris posted a first-quarter net loss of MXP370 million ($28.3 million), widened from a MXP65 million net loss in the year-ago period.
“Market conditions were very difficult,” Volaris CEO Enrique Beltranena said in a statement, citing sluggish Mexican economic growth, weak demand and exchange rate volatility. “While I am disappointed in the quarter’s financial results, we responded well to the challenges,” he said. “We managed capacity and pricing in a responsible way, reaffirmed our cost control discipline and grew non-ticket revenues.”
Total operating revenue was MXP2.78 billion, down 9.3% from MXP3.06 billion in the 2013 first-quarter. Operating expenses were MXP3.26 billion, up 7.9% from MXP3.02 billion in the year-ago quarter.
02 May, 2014
Aer Lingus losses increase further
News reports state that Aer Lingus reported an operating loss of €48.5 million ($67 million) in the first quarter, widened from an operating loss of €45.5 million a year ago. Revenue for the quarter, at €259.4 million, remained flat year-over-year.
Aer Lingus does not release net profit figures for its quarterly filings.
The airline said the results were due to the Easter holiday period shifting into the second quarter and the threat of industrial action in early March by Ireland’s Service, Industrial, Professional and Technical Union (SIPTU), which caused a sharp fall-off in bookings ahead of the busy St. Patrick’s Day holiday.
CEO Christoph Mueller said the threatened strike, over a long-running pension dispute, had caused numerous flight cancellations, forcing the carrier to hire replacement aircraft. The strike was called off shortly before it was due to start.
01 May, 2014
Nippon Airways income down 56.2%
News reports state that All Nippon Airways parent ANA Holdings posted net income of ¥18.8 billion ($183 million) for the 2013 financial year ended March 31, 2014, down 56.2% from ¥43.1 billion year-over-year.
The weakness of the Japanese yen, which helped push fuel costs 22% higher in FY2013, was cited as the main reason for the results.
Operating revenue was up 7.9% to reach a record high of ¥1.6 trillion from ¥1.48 trillion in the year-ago period. However, sales growth in each business segment, operating income, recurring profit and net income were all down compared to FY2012.
Operating expenses were up 11.3% to ¥1.54 trillion from ¥1.4 trillion in FY2012, and operating income was down 36.4% to ¥66 billion from ¥104 billion a year earlier.
25 Apr, 2014
United Continental Holdings reports a first quarter loss of $609 million
News reports state that News reports state that United Continental Holdings, parent of United Airlines, reported a first-quarter net loss of $609 million, including $120 million of special charges, deepened from a net loss of $417 million in the 2013 first-quarter. Subtracting special charges, United’s first-quarter net loss was $489 million, compared to first-quarter 2013’s net loss, excluding special charges, of $358 million.
Total revenue was $8.7 billion, down 0.3% year-over-year. First-quarter consolidated passenger revenue decreased 2.3% year-over-year to $7.4 billion on a consolidated capacity reduction of 0.3%.
First-quarter consolidated PRASM fell 2% year-over-year to 12.91 cents. Weather-related cancellations reduced first-quarter consolidated PRASM by 1.5 percentage points.
“The winter storms severely impacted the operations in the first quarter. In total, we canceled 35,000 flights … including 30,000 flights in our regional operations,” United vice chairman and chief revenue officer Jim Compton said. “This number represents two-and-a-half times the cancellations we had in the first quarter of last year. Put another way, this is the equivalent of not flying for seven of the 90 days this past quarter.”
First-quarter operating expenses increased 0.7% year-over-year to $9 billion, resulting in an operating loss for the quarter of $349 million, surpassing by $85 million the operating loss United reported in the year-ago quarter.
United’s first-quarter consolidated traffic decreased 0.3% year-over-year to 46.4 billion RPMs on a 0.3% capacity decrease to 57.2 billion ASMs, producing a passenger load factor of 81.1%, which remained flat compared to the year-ago quarter. Adverse weather conditions during the quarter drove the decreases, United said. Passenger yield fell 2% year-over-year to 15.92 cents.
“Our financial performance in the first quarter was disappointing,” United chairman, president and CEO Jeff Smisek said. “Although the historic winter weather adversely affected our result this quarter, we know we can do better. We are committed to expanding our profits this year and to improving our profitability each year after that.”
22 Apr, 2014
Thai Airways losses bigger than expected
News reports state that Thai Airways International Pcl warned on Monday of a steeper-than-expected first-quarter net loss as passenger numbers fell due to prolonged political unrest in Thailand and fierce competition from low-cost carriers.
"First quarter net loss will be higher than what we had expected by 30 million baht," acting president Chokchai Panyayong told reporters after a board meeting. He did not give an exact figure for the anticipated loss.
Passenger numbers in March alone dropped almost 21 percent from the same month a year ago to 1.59 million, he said.
The number of seats sold in the first quarter also fell to 71.1 percent from 79.8 percent a year earlier, with March seeing a year-on-year drop of 11.6 percentage points to 68.7 percent.
Thai Airways, the country's national carrier, posted a third successive quarter of losses in the fourth quarter after a falling baht hit revenue and anti-government protests deterred foreign tourists, especially from China, Japan and South Korea.
04 Apr, 2014
Qantas plunged into the red by Fitch
News reports state that Moody and Fitch subsidiary Fitch Ratings has put Qantas in its “red pain zone” category.
This category is applied to companies with plunging cash flow and increasing net debt, the Sydney Morning Herald reported.
The label has been applied just as the airline faces higher borrowing costs as a result of credit ratings agency Standard and Poor’s downgrading the airline’s stock to junk status.
Fitch analyst Matt Jamieson said that the Qantas and Virgin capacity war was taking its toll on Qantas’ bottom line.
“Virgin Australia … Qantas key competitor has been so aggressive in capacity additions that a structural shift has occurred,” Mr Jamieson said.
Mr Jamieson also said that the airline was facing higher debt because of trying to upgrade its fleet, while higher fuel use reduced cash flow.
Qantas has on average reduced the age of its fleet by 7.6 years, which has also added to its debt burden.
02 Apr, 2014
Oman Air $294.3 Million loss
New reports state that Middle Eastern carrier Oman Air has reported a loss of OR113.3 million ($294.3 million) for 2013, widened 16% from 2012. Revenues rose 10% to OR381.7 million.
Passenger boardings climbed nearly 13%, to 4.99 million, while cargo volumes rose 7% to 119,700 tonnes. Freight operations benefited from the enhanced capacity offered by a block space agreement with DHL between Muscat and Dubai.
At the carrier’s AGM, chairman Darwish Bin Ismail Al Balushi said Oman Air’s losses were attributed to continued investment in new aircraft. The carrier, which is growing rapidly in an attempt to achieve critical mass, will take delivery of the first wave of 20 new aircraft later this year.
Oman Air plans to spin off several aspects of its activities into separate companies as the carrier continues to expand.
Al Balushi said the airline’s operations over the past two decades have gradually diversified into areas including charters, ground handling, cargo handling, catering and duty-free businesses.
He said the carrier’s continued growth means it might be better managed as independent businesses with dedicated managements. Therefore, Oman Air has planned to spin them off into separate legal entities beginning with ground handling and cargo handling businesses. They would continue to operate within an Oman Air Group. Final decisions and timeframes will be announced following consultations with the government, the airline’s owner.
14 Mar, 2014
Lufthansa Group profits down 75%
News reports state that The Lufthansa Group reported 2013 annual net income of €313 million ($434.2 million), down 75% from a €1.22 billion profit in the year-ago period.
Revenue fell 0.4% to €30 billion and operating profit was €697 million, down 16.9% year-over-year.
28 Feb, 2014
Qantas half year losses
News reports state that Qantas Group reported a first-half fiscal year 2014 net loss of A$235 million ($208 million), a A$346 million plunge from the A$111 million profit Qantas posted in the year-ago period. The Group’s first half ended Dec. 31, 2013.
First-half revenue was A$7.9 billion, down 4% compared to the year-ago period.
For the first half, Qantas Domestic reported underlying EBIT of A$57 million, a 73.9% drop from the Group domestic carrier’s A$218 profit during the year-ago period.
Qantas International posted an underlying EBIT loss of A$262 million in the first half, nearly tripling the A$91 loss the Group posted for its international carrier in first-half 2013.
Qantas subsidiary Jetstar reported an underlying EBIT loss of A$16 million, down from the A$128 million profit posted by the Group’s low-cost carrier in first-half 2013.
Qantas Freight posted underlying EBIT of A$11 million, down 50% from the A$22 million profit posted in first-half 2013.
“We are facing some of the toughest conditions Qantas has ever seen,” Qantas CEO Alan Joyce said. “Australia has been hit by a giant wave of international airline capacity … the Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign-backed airlines and yet retain access to Australian bilateral flying rights.”
28 Feb, 2014
Virgin Australia slumps to half year losses
News reports state that Virgin Australia has slumped to a first half loss of $83.7 million as it fights to take market share from rival Qantas.
The result, for the six months to December 31, compares to a $23 million net profit a year ago.
The company blamed the decline in performance on a challenging trading and competitive environment, ongoing subdued consumer sentiment and economic uncertainty, the effect of strong market capacity growth and an unrecovered $27 million cost of the carbon tax.
Virgin Australia chief executive John Borghetti said the Australian aviation market continued to be impacted by significant capacity growth which occurred last year.
21 Feb, 2014
Malaysia Airlines worst quarterly loss this year
News reports state that Malaysia Airlines (MAS) made a RM375.4mil loss in the three months ended Sept 30 compared with a net profit of RM37.08mil a year ago, as it reported the worst quarterly results this year after the management adopted an aggressive pricing strategy to fill up increased seat capacity and defend market share even as the weaker ringgit drove up the cost of operating its expanding fleet.
“We are extremely disappointed with these results which emphasise the need to maintain our focus on cost control and drive improved efficiency and performance across all divisions,’’ MAS group chief executive officer Ahmad Jauhari Yahya said in a statement yesterday.
The business environment for the airline industry remained “very challenging” despite continued passenger growth,
“Jet fuel prices are still high, exchange rates are uncertain, competition is increasing and continued pressure on yield is impacting all sectors,’’ MAS said yesterday in a separate statement to Bursa Malaysia.
MAS’ dismal performance in the third quarter means the airline has yet to make a profit this year. Losses over a nine-month period swelled to RM830mil compared with a loss of RM484mil reported over the same period last year.
17 Feb, 2014
Moskovia Airlines files for Bankruptcy
News reports state that Moskovia Airlines (3R, Moscow Zhukovsky) interim management have filed for bankruptcy with a Moscow court 8 months after a previous motion filed by the Finance Leasing Company was dismissed. Russian news portal AEX.ru says the FLC has repeatedly tried to have Moskovia declare bankruptcy over debts amounting to RUB94.2million (USD2.71million).
10 Feb, 2014
Jet Airways fourth straight quarterly loss
News reports state that India's Jet Airways has reported a loss of Rs 2.83 billion ($47.3 million) on revenues of Rs 19.7 billion for the quarter ended Dec. 31, 2013. This is the airline’s fourth straight quarterly loss.
The Mumbai-based airline had reported a profit of Rs 850 million in the same period last year. It has been unable to shake off the impact of high fuel costs and pressure on fares brought on by competition. Abu Dhabi’s national carrier Etihad bought a 24% stake in the airline last year.
Jet CFO Ravishankar Gopalakrishnan said the losses were lower because of improved passenger yields and sustained market share. Management said it expects the current quarter (January to March) to be muted in terms of passenger yield and seat factor.
10 Feb, 2014
Merpati Nusantara Airlines suspends operations
News reports state that the government has finally opted to temporarily halt the operations of state-owned Merpati Nusantara Airlines after the troubled carrier failed to resolve its financial difficulties.
Transportation Ministry director general for air transportation Herry Bakti Gumay said in Jakarta on Saturday that the airline would no longer be allowed to fly from Monday next week.
“Next week, we will freeze Merpati’s air operator certificate [flight permit],” he said, adding that his office did not have any choice but to temporarily do so as no solution to the airline’s financial problems had been found.
07 Feb, 2014
Korean Air posts a $362.1 Million loss
News reports state that Korean Air has posted a net loss for 2013 of KRW385 billion ($362.1 million), a year-over-year drop of KRW641 billion from 2012. Full-year revenue fell 4% year-over-year to KRW11.85 trillion. Operating expenses also fell (-2%) to KRW11.87 trillion, resulting in an operating deficit of KRW18 billion for the year, reversing the company’s operating profit of KRW229 billion reported for 2012.
The South Korean flag carrier is reporting a fourth-quarter 2013 net loss of KRW58 billion, a difference of KRW198 million from fourth-quarter net profits in 2012. Fourth-quarter operating revenue slipped 0.3% year-over-year to KRW2.98 trillion; operating expenses were down 1.9% to KRW2.96 trillion, producing an operating profit of KRW20 billion, reversing an operating loss of KRW30 billion reported in the fourth quarter of 2012.
Korean Air’s full-year international traffic fell 0.4% to 65.9 billion RPKs; capacity grew 1.3% to 85.6 billion ASKs, producing a load factor of 77%, down 1.3 points year-over-year. Yield for Korean Air’s international passengers fell 2.1% year-over-year to $0.093. Cargo demand fell 5.7% year-over-year to 7.8 billion FTKs; cargo capacity decreased 6.4% to 10.1 billion AFTKs, resulting in a cargo load factor of 77% for 2013, a 0.6 point increase year-over-year.
05 Feb, 2014
Bahrain Air on the verge of bankruptcy
News reports state that Bahrain Air on the verge of bankruptcy. Hundreds of Bahrain Air staff who lost their jobs when the airline went into voluntary liquidation are unlikely to receive severance packages with the company allegedly about to file for bankruptcy.
Millions of dinars owned to companies will also have to be written off as the carrier changes its legal status, said a report in the Gulf Daily News (GDN), our sister publication.
The revelations come almost a year after the airline went into voluntary liquidation, with the loss of 345 jobs.
Numerous lawsuits were earlier filed against the carrier by disgruntled employees and it is understood it owes companies at least BD4 million ($10.5 million).
A lawyer arguing on behalf of former Bahrain Air staff told the GDN the courts had already informed people with cases against the airline that it will file for bankruptcy within weeks.
"The airline is filing for bankruptcy on February 19 which means that all the 75 individuals (who have cases pending) and any companies with cases against it will get nothing," he said.
"Because they are filing for bankruptcy in February then all those cases in which verdicts were due in March will be useless.
"By filing for bankruptcy they don't have to pay anyone anything and instead the burden of distributing the assets will be on the court and that includes the millions they owe to companies too."
One former Bahrain Air employee, who is among those taking legal action against the airline, said many of those who lost their jobs were still struggling to make ends meet.
"The airline is filing for bankruptcy and we are all worried that we will get nothing once that happens," he said.
05 Feb, 2014
Krohns Air files suspends flights and files for Bankruptcy
News reports state that the Norwegian regional airline ceased its flights and filed for bankruptcy.
Krohn Air is a virtual regional airline. It was founded in 2002 in response to the setting of flights into smaller Norwegian cities by SAS. With a leased BAe Jetstream 32 she was still flying at the end of three destinations in their home country. They served the goals Alesund, Molde and Trondheim. But on Tuesday (February 4) presented a Krohn Air all their flights. At the same time the company filed for bankruptcy. The aircraft had the Dutch AIS provided that wants to expand into Germany.
03 Feb, 2014
News reports state that Low-cost carrier (LCC) Ryanair slipped into the red in the fiscal third quarter, registering a €35.2 million ($47.3 million) loss compared to an €18.1 million profit a year previously.
Revenue was up fractionally at €969 million, compared to €964 million for the year-ago period.
The Irish LCC said losses were in line with its previous guidance and due entirely to lower fares and a weakness in the sterling. Anticipated full-year profit outlook remains steady at around €510 million.
31 Jan, 2014
South African Airways still heavily on in the red despite lower losses
News reports state that South African Airways (SAA) reduced its losses for the 2012-13 financial year, but remains heavily in the red.
SAA announced a pre-tax loss of R1.2 billion ($107 million) at its annual general meeting, compared to R1.4 billion last time. Net profit/loss figures were not released. Revenue in “a challenging and competitive environment” was up 14% at R27.1 billion, compared to R23.9 billion for the previous year.
The revenue improvement was attributed to several factors—including a 7% increase in fares, an 8% increase in passengers on traditionally profitable domestic routes, and a 3% increase in capacity.
Among several negative factors, fuel costs and a 13% weakening of the South African rand against the dollar had a severe impact on operating costs, which rose 12% year-on-year, SAA said. Fuel costs had the greatest impact on long-haul routes where the existing fleet was fuel inefficient.
The weaker South African currency offset savings of more than R1 billion made through the airline’s cost compression program. For example, maintenance costs—mostly tied up in ongoing contracts and affected by currency fluctuations—were up 33%, from R1.7 billion to R2.3 billion. Aircraft lease costs increased 17% from R1.8 billion to R2.1 billion
Employee costs increased 3% to R4.8 billion. Management did not receive any salary increase for the year, while pilots received 7.2% and general staff, 6.1%. Headcount was up 4%, primarily due to conversion of contract workers to permanent staff.
29 Jan, 2014
Thai Airways third consecutive quarter loss
New reports state that Thai Airways International booked a third successive quarter of losses on Tuesday after a falling baht hit revenue and pushed up its foreign debt and the political unrest in Thailand deterred visitors from abroad.
The result comes after a turbulent start to 2014 which has seen the resignations of both the chairman and president.
Earnings in the last three months of 2013 suffered from a rise in the cost of repaying roughly $5 billion worth of primarily euro-denominated debt, caused by a 5.8 percent decline in the value of the baht against the euro.
The baht also fell against the dollar and yen - which, with the euro, account for 75 percent of revenue - due to concerns for the economy following the anti-government protests.
The protests also led to a slowdown in visitors just as the airline had increased capacity with the delivery of new planes. The result was a fourth-quarter net loss of 5.65 billion baht ($174 million), which compared with a profit of 792 million baht in the same period of 2012 but was better than expected by analytss, which on average had forecast a loss of 7 billion baht according to a Reuters survey.
For the full year, the airline booked a net loss of 12 billion baht, which compared with a profit of 6.2 billion baht in 2012.
Shares in Thai Airways closed down 1.5 percent ahead of the earnings release, compared with a 0.2 percent rise in the benchmark index. The release was initially scheduled for Feb. 21 and then midday Feb. 25, but was delayed while awaiting the auditor's sign-off.
09 Jan, 2014
Qantas downgraded to junk status again
News reports state that Qantas faces a further increase in the cost of new borrowings after the second of the big two credit ratings agencies downgraded it to junk status, citing a ''sharp deterioration'' in its key domestic business due to stiff competition from Virgin Australia.
A month after Standard & Poor's cut the airline to junk, Qantas suffered further ignominy on Thursday when Moody's downgraded the airline two notches to Ba2, from Baa3, with a negative outlook.
A two-notch downgrade is uncommon, and leaves US carrier Southwest and Air New Zealand as the only airlines Moody's rates investment grade.
It follows Moody's putting Qantas on review last month after the airline warned it would post a first-half loss of up to $300 million and axe at least 1000 jobs.
21 Dec, 2013
Haiti Aviation suspends operations
News reports state that Haiti Aviation, the Haitian-operated airline that distinguished itself from the competition by busing customers to their final destination after their arrival, has had its wings clipped.
Flights were abruptly suspended Thursday, stranding passengers in Port-au-Prince, Haiti and in Miami.
Falcon Air, which had been leasing a 150-seat aircraft and six crew members to Haiti Aviation for thrice-weekly flights between Miami and Port-au-Prince told the airline Wednesday night that it would no longer provide the plane and crew.
When Nelson Ramiz Jr., the general manager of Falcon said the plane would no longer be showing up at the gate, “I thought it was a game,’’ said Charles Voigt, Haiti Aviation founder.
But the financial dispute between Voigt and Ramiz is quite real.
16 Dec, 2013
Brindabella Airlines put into receivership
News reports state that Brindabella Airlines' 140 employees, including 70 in Canberra, have been temporarily stood down after the company was put into receivership.
Staff did not comment on the decision as they left a meeting at Brindabella Airlines' offices on Monday morning, with some embracing and bursting into tears.
Receiver Sebastian Hans said the reaction from staff had been "a mix of high emotion and sadness" but that this suspension would be a matter of days, not weeks.
16 Dec, 2013
Danube Wings ceases all operations
News reports state that DanubeWings (V5, Bratislava) has reportedly suspended all its operations until further notice. According to AustrianWings, the Slovak carrier has not operated any actual revenue flights, scheduled or charter, since November 20, with all staff having now been laid off. The airline's fleet of three ATR72-200s will also be put up for sale. Parent VR Jet (VRJ, Bratislava) has not been affected by Danube Wings' termination of operations.
16 Dec, 2013
Link Airs files for bankruptcy
News reports state that LINK Airs (Fukuoka) has filed for voluntary bankruptcy and will now be liquidated. Its reported that the start-up failed to raise adequate capital for its operations.
06 Dec, 2013
Qantas financial rating lowered by S&P to 'Junk Status' by S&P
News reports state that Qantas, the Australian airline, has had its credit rating downgraded to "junk" - below-investment - level, by the ratings agency Standard & Poor's (S&P).
The downgrade could increase the airline's borrowing costs and sends a warning to investors.
The move by S&P comes after the airline issued a surprise profit warning and announced 1,000 job cuts on Thursday.
The carrier expects to make losses of up to A$300m ($271m; £165m) in the July-to-December period.
S&P said the rating cut reflected its view "that intense competition in the airline industry has weakened Qantas' business risk profile to fair from satisfactory, and financial risk profile to significant from intermediate."
It lowered the carrier's rating from the lowest investment grade, BBB-, to BB+.
05 Dec, 2013
Qantas reports expected losses and urgent action required
News reports state that Qantas Airways Ltd. (QAN), Australia’s largest carrier, flagged a record first-half loss and 1,000 job cuts, sending its shares down the most in 18 months.
Rising fuel costs and a drop in domestic ticket prices will drive losses of between A$250 million ($226 million) and A$300 million before tax and one-time items in the six months ending Dec. 30, the Sydney-based company said in a regulatory statement today. The airline is aiming for A$2 billion of cost savings over the next three years.
The forecast prompted Moody’s Investors Service to place Qantas’s credit rating on review for a possible downgrade, underscoring the challenges Chief Executive Officer Alan Joyce faces amid a market share fight with second-ranked Virgin Australia Holdings Ltd. (VAH) A first-half loss may leave Qantas shareholders sitting on aggregate net losses over the five years since Joyce took over, compared with A$3.31 billion of profits posted in the previous five years.
25 Nov, 2013
Belle Air collapes
News reports state that Albanian carrier Belle Air has ceased operations "due to the general economic situation, the decline of the purchasing power, recession in the markets it operates as well as from the freezing for over 18 days of its bank accounts".
The airline, which served airports including London's Stansted from its base at Tirana International, said that it would now "start a process of restructuring aiming to return with lower prices and quality service in the Albanian market".
It added that it would invite Albanian and foreign investors "to be part of the revival of this success story of an Albanian born business".
The news leaves just British Airways offering direct, non-stop flights between London and Tirana, with a three times-weekly service operating from London Gatwick.
Belle Air said that customers holding a valid ticket would be able to purchase "a new ticket at a special adjusted price" from Italian carrier Blue Express.
01 Nov, 2013
Lufthansa net profits down 64.6%
News reports state that Lufthansa Group reported a net profit of €247 million ($340 million) for the first nine months ended Sept. 30, down 64.6% from the year-ago period.
Group total revenue for the 9-month period was €22.8 billion, down 0.23% year-over-year. Operating profit was €661 million, down 27.1% from €907 million in the year-ago period. Adjusted operating profit was €859 million, up 48% from €582 million in Sept. 30, 2012. In a statement, the Lufthansa Group said the results were adjusted for restructuring and project costs and positive non-recurring effects.
01 Nov, 2013
Air France KLM still in the red, profits down despite revenue up
News reports state that Air France-KLM reported a third-quarter net profit of €144 million ($195.7 million), down 51% on last year’s third-quarter figure of €296 million. However, chairman Alexandre de Juniac pointed to a growing operating profit of €634 million for the quarter, up 29% from €491 million year-over-year as the company continues to address its financial problems.
29 Oct, 2013
Flynonstop Airlines files for Bankruptcy
News reports state that fledgling Norwegian carrier Flynonstop has ceased operations and filed for bankruptcy, just six months after its launch.
“We regret to announce that of today we have sent a petition for bankruptcy of Flynonstop AS. This means that all our flights as of Tuesday, 10/29/2013 at 06:00 have been canceled,” a statement on its website said Tuesday.
Kristiansand-based Flynonstop launched operations April 25, serving a range of European destinations including London City, Barcelona, Berlin, Nice, Palma, Paris and Parma. It operated an Embraer E-190 on lease from CIT Aerospace using the air operator’s certificate of Dutch carrier Denim Air.
“Unfortunately we at Flynonstop could no longer meet the company’s obligations. We therefore realize that we had to close down the operation,” the statement said.
23 Sep, 2013
BA's Willie Walsh warns of more European Airlines to collapse
News reports state that Airline chief Willie Walsh has warned "a number" of European carriers are poised to fail.
Walsh, the chief executive of British Airways parent International Airlines Group (IAG), said: "Quite a number of airlines on the periphery of Europe continue to struggle.
"We are going to see a number of airlines in Europe go out of business.
"You will see a number of airlines struggle through this winter. There is little value in acquiring these companies, so the next phase of consolidation will be carriers going out of business."
Walsh declined to name any carriers, but said: "There are a lot of small airlines with very weak balance sheets and easyJet and Ryanair continue to apply pressure in short-haul markets."
12 Sep, 2013
Dagestan Airlines goes into Bankruptcy
News reports state that the Arbitration Court of the Dagestan Republic has declared the bankruptcy of Dagestan Airlines, more than a year after Russian authorities withdrew the Makhachkala-based carrier’s air operator’s certificate at the end of 2011.
According to Russia’s Federal Air Transport Agency, Rosaviatsia, the decision was based on unsatisfactory safety performance and financial problems.
01 Sep, 2013
Dutch Antilles Express
News reports state that Dutch Antilles Express (9H, Curacao) has been declared bankrupt by the Court of First Instance of Curaçao at the behest of the airline's employees, Zakenreisnieuws.nl has reported. In their submission, the employees argued that the airline declaring bankruptcy was the only way for them to recover any of the monies still owed to them after having gone for more than two months without being paid. The onset of DAE's financial woes first surfaced in May when USD20million in remittances was reportedly frozen in Venezuela after authorities there moved to block the airline from operating to the country citing alleged safety oversights.
29 Mar, 2013
Armavia files for bankruptcy
News reports state that Armenian businessmen Mikayel Baghdasarov’s Armavia, the country’s only carrier, declared bankruptcy today and will cease flights starting April 1.
The company founded in 1996 was unable to pay debt accumulated to the Zvartnots airport in Yerevan, Armenia’s capital, and to its contractors, Armavia said in an e-mailed statement today. The total debt was less than $50 million, Baghdasarov told the Arminfo news service on March 15.
12 Feb, 2013
Bahrain Air files for bankruptcy
News reports state that Bahrain Air through their website have stated today:-
"Statement from the Board of Directors of Bahrain Air
Bahrain Air held an Extraordinary General Meeting today at which the shareholders made the decision to announce the company’s immediate suspension of operations and to file for voluntary liquidation in accordance with the Kingdom of Bahrain's Commercial Companies Law.
The company sustained considerable financial losses as a result of the unstable political and security situation in Bahrain. In 2011, during Bahrain’s State of National Emergency, the airline was instructed to suspend flights to several destinations, and also suffered from the lack of traffic to and from Bahrain, and from the restrictions on the Saudi Causeway. Despite the Royal Decree number 18 for 2011 Article 5/10 regulating land, sea and air transportation during Bahrain’s State of National safety which states that all affected parties will be fairly compensated, the airline, despite making official claims, has received no compensation."
31 Jan, 2013
Batavia Air files for Bankruptcy
News reports state that JAKARTA, Indonesia -- Indonesia's commercial court has declared budget carrier Batavia Air bankrupt just months after AirAsia, Southeast Asia's top low-cost airline, aborted a deal to invest in it, officials said Thursday.
Agus Iskandar, presiding judge at the Jakarta Commercial Court, said a bankruptcy petition filed by U.S.-based International Lease Finance Corporation was approved on Wednesday after Batavia Air failed to pay a $4.7 million debt that was due Dec. 13. Flights abruptly stopped just after midnight, stranding hundreds of passengers across the country.
27 Jan, 2013
OLT Express Germany ceases operations
News reports state that OLT Express Germany ceased operations Jan. 27 after owner Panta Holdings B.V would not agree to support a restructuring program.
OLT Express Germany said management and its 450 employees had agreed to a 25% cut in salaries to continue operations; it also had agreements in place with creditors.
In December 2012, the carrier announced plans to temporarily suspend 12 routes from German regional airports from early January. It attributed the route changes to high fuel prices and expectations it could not meet its year-end forecast.
04 Jan, 2013
Aerosvit Airlines ceases trading and files for bankruptcy
News reports state that Aerosvit Airlines (VV, Kiev Borispol (KBP)) has according to Kiev Borispol Airport ceased their operation at noon today. Flight VV257 which left for Copenhagen was the last Aerosvit Airlines flight before they stopped their operation. According to ukranian newspaper delo.ua the airline has also filed for bankruptcy on December 29 at the industrial court in Kiev. The carrier owned by Ukranian oligarch Ihor Kolomojskyj and his Privat Bank Group already had been in financial difficulties for some time accumulating approximately €420 million EUR in debt. The court has appointed Leonid Talan as the Airlines Insolvency Administrator. Aerosvit Airlines had operated a fleet of 31 aircrafts (28 active, 3 stored) with an average age of 17.1 years.
11 Dec, 2012
Kuban Airlines ceases trading
News reports state that Russia’s Krasnodar-based Kuban Airlines will cease operations Dec. 11 due to financial difficulties. Also, the airline said it could not meet new requirements that took effect last month requiring Russian airlines using aircraft with larger than 55 seats to have at least eight aircraft of the same type.
At the beginning of last month, Kuban stopped using its Soviet-built fleet. The carrier had to return three Airbus A319s to its lessors due to its inability to pay.
In 2011, Kuban Airlines carried nearly 900,000 passengers. Last year, the airline merged with Sky Express—the first low-cost carrier in Russia. Both airlines belonged to investment company Basic Element.
31 Jul, 2012
SOL Airlines goes into liquidation
News reports state that the Paraguayan state airline, Sol of Paraguay announced today that it was going out of business because of the economic crisis it has suffered due to the isolation of the country after the constitutional president, Fernando Lugo, was deposed. A press release from the company said that the causes of the disappearance of its regular operations, starting August 1st, are the financial crisis in the region and the lack of support from neighboring countries, in allusion to the sanctions imposed by Mercosur and Unasur.
These things are limiting our growth and causing irreparable economic damage, said the airline.
30 Jul, 2012
OLT Express files for Bankruptcy
News reports state that OLT Express, the airline which had revolutionised domestic air travel in Poland, has suddenly announced it has filed for bankruptcy.
Friday morning saw the cancelation of 16 departures and 14 arrivals at Warsaw’s Chopin Airport, and the company tweet, “Today the company has filed for bankruptcy. We wish to inform you that a decision by the Civil Aviation Authority means that as of July 27, OLT has had its operating licence revoked with immediate effect.”
It also added that, for the time being at least, its charter arm would continue to operate.
Passengers and holiday makers only learnt of the cancelations upon arriving at the airport, with the news being displayed on official information boards.
17 Jul, 2012
European carriers forecast €1.5 billion in losses for 2012
News reports state that Europe’s network carriers are forecasting a €1.5 billion ($1.8 billion) EBIT loss in 2012, as the bottom line fails to keep pace with traffic growth.
Assn. of European Airlines (AEA) acting secretary general Athar Husain Khan said, “2012 was foreseen with a gloomy, uncertain economic outlook and our forecasts are proving to be accurate.” AEA said the European market “is clearly not able to absorb higher fares” and that its members have had “limited” benefit from falling fuel prices due to adverse euro/dollar exchange rates and hedging programs.
27 Jun, 2012
Air Finland files for bankruptcy
News reports state that Air Finland, the 10-year-old airline and package tour operator, has ended all operations and filed for bankruptcy. All flights are cancelled as of Tuesday evening, 26th June 2012.
In a brief statement on its website, the leisure airline expresses deep regret for the harm caused to its customers by the sudden announcement. According to STT, the Finnish News Agency, there are now around 1,000 Air Finland customers abroad.
23 May, 2012
Skyways Express & City Airline file for bankrutcy
News reports state that News reports state that Sweden’s Skyways Express (JZ) and subsidiary City Airline (CF) have stopped all flights and will file for bankruptcy, according to a statement on their website. CF was acquired by JZ last November.
“The owners of the company have decided not to fund the company any longer and therefore the board of directors was forced to decide to stop all payments and to stop all flights,” the airline said in a statement.
JZ and Denmark’s Cimber Sterling (QI) are both owned by Cyprus-based Mansvell Enterprises, which is 75% controlled by Ukrainian businessman Igor Kolomoisky. QI filed for bankruptcy earlier this month.
“We have come far in turning the company around but after the bankruptcy of Cimber it became almost impossible to continue,” CEO Mikael Wångdahl said.
JZ operated out of Stockholm with a fleet of 12 Fokker 50s, two Saab 340s, one Saab 2000 and one Bae146.
CF operated out of Gothenburg with seven Embraer E-145s, two E-135s and one MD-80.
The Swedish Pilot Assn. expects that up to 350 jobs could be affected.
03 May, 2012
Cimber Sterling declares bankruptcy
News reports state that Danish no-frills airline Cimber Sterling said on Thursday it has declared bankruptcy after its owners pulled financial support from the company.
"Because of this the board of directors has decided to declare the company bankrupt," Cimber Sterling said in a statement.
In August last year, Mansvell Enterprises, an investment vehicle of Ukrainian businessman Igor Kolomoisky, offered to buy out Cimber's minority shareholders for DKK1.50 kroner per share.
The offer for minority shares followed Mansvell's acquisition of a 70.8 percent stake in Cimber through a directed share issue on August 1.
Cimber Sterling, a small rival to Scandinavian airline SAS, Finland's Finnair and Norwegian Air Shuttle, among others, was hit by fierce competition between low-cost carriers and rising costs when it expanded beyond its home Scandinavian region.
"The board of directors and the management team have worked intensely to ensure a turnaround of the company for several months but unfortunately we did not succeed before we ran out of time," chief executive Jan Palmer said in the statement.
A court will appoint one or more administrators for the bankrupt airline, Cimber Sterling said, adding that it would work with them to try to preserve as much of the operations as possible under a reconstructed company.
But Cimber Sterling said passengers tickets were "worthless" and the airline's website said all flights were cancelled.
26 Apr, 2012
British Airways Willie Walsh warns of more airline failures to come
News reports state that British Airways and Iberia boss Willie Walsh warned of further airline bankruptcies in the coming year and said he envied the economic model of major Gulf carriers that have managed to redraw the aviation map efficiently around the Middle East.
The chief executive of International Airlines Group joined the head of Dubai's Emirates and other industry leaders in predicting further retrenchment, as weaker airlines struggle to generate the cash needed to ride out high oil prices.
"I expect to see significant moves on the subject of consolidation as we move through the year and into next year," Walsh told the AFCA aircraft finance conference in Barcelona.
Although some airlines like IAG itself are expected to gobble up smaller rivals, Walsh said the shake-up would also include "probably the cheapest form of consolidation for the industry and that is where we see airlines fail".
About half a dozen European airlines have folded in the past year including Barcelona-based Spanair which stopped trading in January despite a cash injection from the Catalan government.
Walsh delivered his comments with a warning to striking Spanish pilots that Iberia would "have no future" if it did not see through reforms that include the creation of low-cost Iberia Express, designed to replace labour rules at the main carrier.
Spanish pilots are staging a series of strikes to try to halt the creation of the cheaper sister airline.
Walsh, who led BA to a merger with Spain's Iberia under the umbrella of IAG last year after a bitter series of cabin crew strikes in the UK, said he would not back down on the move to get rid of pilot contracts he called "frankly outrageous".
In further blunt comments, Walsh said IAG would close two loss-making subsidiaries inherited from the acquisition of Lufthansa's UK unit bmi if it is unable to sell them.
IAG plans to keep the main bmi airline, but is struggling to sell its low-cost and regional units, bmibaby and regional. It meanwhile continues to seek acquisition targets.
"Our approach will be one of greater caution. We are not looking to consolidate just to make IAG bigger," Walsh said.
03 Apr, 2012
Aerosur Airlines ceases international and domestic operations
News reports state that Bolivia's largest airline, Aerosur, has suspended all domestic and international flight operations from 31 March, leaving thousands of passengers stranded.
While the airline has made no official announcement, its website remains inaccessible and its Bolivan call centre unreachable. An employee at Aerosur's Madrid office confirms that the airline is "not operating" and "is not paying employees and providers", which forced the airline to cancel its 31 March evening departure to Santa Cruz and ground its aircraft in Madrid.
Bolivia's Minister of Public Works, Vladimir Sanchez, confirmed on Bolivian TV that the airline had ceased operations. He denied reports that the Bolivian government had forced the grounding. Sanchez confirmed that Aerosur's tax debt amounted to 1.34 billion Bolivianos (US$ 142 million), although Aerosur had disputed the amount in previous occasions in local courts, where the case remains open. This has so far prevented the government from impounding Aerosur accounts or goods. The actual debt, including interest, fines and debt with banks and providers, could vastly exceed this amount.
"We will do our best to save the jobs and recover the operations of the airline," Sanchez said, but he added: "But we will not use public money to subsidise the airline. We will do what we can to help the airline to be able to help itself, but they [Aerosur] will have to develop their own rescue plan."
02 Apr, 2012
Pinnacle Airlines files for bankruptcy protection
News reports state that Pinnacle Airlines Corp filed for bankruptcy protection late on Sunday, as the U.S. regional airline fell victim to high fuel prices and dampened travel demand that has negatively impacted some of the major players in the industry.
In a filing with a U.S. bankruptcy court, Pinnacle said it seeks to resolve its operational and financial difficulties through the Chapter 11 process. It also seeks to implement a turnaround plan by cutting costs and restructuring certain agreements with major airlines.
** Under IPP's policies cover for airlines that have filed for Bankruptcy protection at the date of purchasing insurance is excluded.
20 Mar, 2012
KingFisher Airlines to suspend all international operations
News reports state that troubled Indian carrier Kingfisher Airlines is liable for prosecution over unpaid taxes, aviation minister Ajit Singh told reporters on Tuesday. The minister said the onus to save Kingfisher Airlines was on chairman Vijay Mallya. "Vijay Mallya has to convince DGCA (directorate related stories
DGCA summons Mallya, KFA risks losing permit
Kingfisher Airlines independent director quits board
general of civil aviation) that he is in a position to operate an airline. The onus is on him," Singh said.
Kingfisher Airlines has submitted a new flight plan to the country's aviation regulator and will operate up to 125 daily local flights with 20 planes, chief executive Sanjay Aggarwal said on Tuesday.
Kingfisher, which is scrambling to raise funds as banks have refused to lend the debt-laden carrier more for day-to-day operations, will discontinue all international operations by April 10, Aggarwal said after a meeting with the regulator.
Vijay Mallya said: "Kingfisher to suspend all international flights".
"DGCA assured that Kingfisher will maintain scheduling integrity," He also said
Earlier on the day, the aviation minister warned that government may cancel the flying licence of debt-laden Kingfisher Airlines if it fails to meet safety standards and pay its bills.
Vijay Mallya had been summoned to meet the DGCA Bharat Bhushan in New Delhi to explain the airline's current situation and discuss a revival strategy.
"It's a completely difficult situation which cannot go on like this. I would not like to speculate more," Bhushan said.
"We have to look at how they are meeting safety norms. The regulator continues to examine each Kingfisher flight for safety," Aviation Minister Ajit Singh told reporters.
"If required, the licence can be cancelled as passenger safety is a top priority," Singh said, adding Kingfisher's financial arrears could also force the carrier's grounding.
The carrier has cancelled nearly half of its flights due to a strike by pilots and its financial difficulties, running around 100 flights a day instead of its scheduled 175. The pilots are on strike over unpaid wages.
Kingfisher now operates 18 planes, Singh said, down from 28 last month. Before its cash squeeze, Kingfisher operated 64 aircraft monthly.
19 Mar, 2012
RedJet grounded due to financial woes
News reports state that there's more uncertainty concerning the resumption of flight service by low budget airline REDJet.
The Barbados-based air carrier which commenced flying to Jamaica last November announced on Friday March 16 that it had suspended all its flights.
REDJet's Chief Executive Officer Ian Burns declined to say when flights would resume.
The airline will reportedly issue a statement on Monday March19.
REDjet has complained that it does not receive Government assistance like other carriers, some of which have drastically cut their fares in an effort to force it out of business.
It stated that despite these efforts, its passenger numbers have continued to rise but it cannot continue to operate under present conditions.
08 Mar, 2012
European Airline flag carriers hit by losses
News reports state that News reports state that Air France-KLM, Europe’s second-largest flag-carrier by revenues, on Thursday warned that its results would deteriorate in the first half of 2012 after swinging to a loss in 2011.
The group, which is grappling with a large debt load and high operating costs, reported a worse-than-expected net loss of €809m for the year to December 31, compared with a €289m net profit in 2010. The airline’s shares fell 1 per cent to €4.10 in early trading.
Lufthansa, Europe’s largest flag-carrier by revenues, on Wednesday, surprised analysts by announcing a €13m net loss for 2011 compared with a net profit of €1.1bn in 2010.
It underlined how many airlines are struggling with the weak economic environment and rising fuel costs, although Lufthansa’s challenges were exacerbated by the fortunes of BMI British Midland, its lossmaking UK subsidiary that is due to be sold to International Airlines Group, parent of British Airways.
Jean-Cyril Spinetta, Air France-KLM’s chairman, described 2011 as a “tough year”, but insisted its new restructuring plan would enable the group to remain a “leading player” in the air transport sector.
Mr Spinetta resumed his former role as chief executive in October when Air France-KLM shuffled its top management in response to its challenges.
The group said the economic outlook for 2012 remained uncertain, while it expected its fuel bill to increase by €1.1bn this year.
“As a result, the operating result of the first half will be below that of the previous year,” it added. “However, the second half should benefit from the first effects of the three-year plan.”
Air France has introduced a wage freeze for 2012 and 2013 at the French part of the alliance and, together with other measures, the group is seeking overall cost savings of €1bn over the next three years.
Air France-KLM is the most leveraged of Europe’s major flag carriers, and it aims to cut net debt by €2bn to €4.5bn by the end of 2014.
The group’s net debt rose €450m over the year to €6.5bn at December 31, while gross cash fell €1.2bn to €2.3bn.
To preserve cash, the group announced it was cutting investment in its aircraft fleet. Investment has been capped at €700m in 2012, €600m in 2013 and €300m in 2014, compared with €1.2bn in 2011.
Peter Hyde, analyst at Liberum Capital, expressed concern at Air France-KLM’s strategic positioning, saying it faced strong competition from budget airlines on medium-haul routes and Gulf carriers on long haul.
Air France-KLM reported revenue of €24.4bn for 2011, up 4.5 per cent on 2010, when results were affected by the Icelandic volcano eruption that closed European air space.
The group swung from an operating profit of €28m in 2010 to a loss of €353m last year. The loss per share was €2.73 in 2011, compared with earnings of €0.98 the previous year.
07 Mar, 2012
GMC Airlines suspended ticket sales by IATA
News reports state that The International Air Transport Association (IATA) has suspended Bangladesh's largest and oldest private carrier GMG Airlines Ltd from its billing and settlement plan (BSP) as the carrier failed to pay dues.
Due to the suspension, all travel and ticketing agents and general sales agents will remove GMG Airlines' ticketing authorities from their systems. The BSP travel agents will also stop all ticketing and refund transactions through the BSP link.
Industry insiders said the suspension will be a huge setback to the country's first private passenger airline as its payments using the BSP link and ticket sales in different countries will come to a halt.
06 Mar, 2012
Malaysia Airlines in crisis
News reports state that Malaysia Airlines recorded a stunning net loss of RM2.52 billion for 2011 and the company is now in “crisis”, the national flag carrier said today.
The carrier also confirmed that the losses for the 2011 financial year were the largest in its history.
The airline reported a massive net loss of RM1.28 billion in the fourth quarter, which was about as much as the first three quarters combined.
“The company is in crisis,” said Malaysia Airlines (MAS) CEO Ahmad Jauhari Yahya in a statement.
Ahmad said that the losses were due to higher expenses including a 25 per cent increase in fuel expenses and a 50 per cent increase in non-fuel expenses.
06 Mar, 2012
Armavia Airline talks of bankruptcy
News reports state that Armenia’s national airline warned on Wednesday that it could file for bankruptcy because of its continuing financial dispute with Yerevan’s Zvartnots international airport managed by an Argentine operator.
Mikhail Bagdasarov, the owner of the Armavia airline, said it can no longer afford what he called exorbitant fees charged by the Zvartnots management for airport ground services.
“The economy was on the rise [in the past] and we could put up with this,” Bagdasarov told reporters. “Now the economy is down and we can’t get by anymore. That is why we are saying, ‘Either we declare bankruptcy or Zvartnots Airport lowers its tariffs by 25 percent.”
27 Feb, 2012
Air Zimbabwe ceases operations
News reports state that Air Zimbabwe (UM) has ceased operations, an airline representative confirmed to ATW. The airline failed to secure a rescue plan, AFP reported Friday.
"I can confirm all flights are suspended. We are grounded indefinitely," UM CEO Innocent Mavhunga told AFP.
According to the newswire, one of its planes was impounded in London for more than two weeks last year over a $1.2 million debt dispute with a US spares company, prompting the airline to suspend flights to neighboring South Africa over another debt of $500,000 fearing creditors might impound more of its aircraft.
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
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.
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.
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
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
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:
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:
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
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
17 Mar, 2009
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.
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
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
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.
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.
05 Apr, 2008
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
News reports state that troubled airine flyWhoosh finally admitted yesterday that its Dundee services have been grounded for good.