ATW Daily News

SkyEurope blames failed bridge loan, cut-rate fares for demise

Thursday September 3, 2009

SkyEurope Airlines, which suspended operations Monday, released a statement saying the trustee appointed by a Slovak court to oversee the LCC's restructuring "assessed that the company did not have sufficient funds for sustaining operations" and opted to file for bankruptcy.

The carrier said it "tried to set up a bridge financing facility to remedy the liquidity shortfall, but this facility was not funded in the last moment" and that "recent actions of suppliers" and falling passenger numbers and revenue contributed to the decision (ATWOnline, Sept. 1).

Yesterday, CEO Nick Manoudakis told Austria's ORF television that approximately 280,000 people now hold useless tickets and that those who used credit cards to purchase tickets online (about 70%) may be able to get refunds if the money had not already been transferred to SkyEurope.

Manoudakis said the carrier made a mistake in selling so many tickets at fares as low as €9 ($12.88). "This was too low to cover our operating costs," he said. The company hopes to keep the SkyEurope brand but will need secured financing in order to do so.

by Kurt Hofmann

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