Left Menu
Development News Edition

UPDATE 1-Germania airline goes bust and cancels all flights


UPDATE 1-Germania airline goes bust and cancels all flights
German holiday airline Germania collapsed on Tuesday after it failed to secure financing to meet a short-term cash squeeze and said it would cancel all flights immediately. The insolvency of Germania, which carried around 4 million passengers each year, follows on from the failure of Germany's second-biggest airline, Air Berlin, in 2017, and underscores the turbulence in the European airlines industry.

Britain's Monarch Airlines and Alitalia have also filed for insolvency in recent years. Germania, founded in 1986, blamed rising fuel prices, a stronger dollar, delays in integrating new aircraft into its fleet as well as a high number of maintenance services for the cash shortage.

"Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion," Chief Executive Karsten Balke said in a statement. Germania's 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. It said all flights had been halted overnight after it filed for bankruptcy late on Monday.

Balke thanked the airline's staff and apologised to passengers who had booked directly with the airline who it said would not be entitled to alternative flights. "The horror for German air travellers continues," said Klaus Mueller, head of the Federation of German Consumer Organisations.

The Federal Association of the German Aviation Industry said airlines, including those belonging to the Lufthansa Group , TUIfly and Condor, would offer stranded Germania passengers special rates to return to Germany. Europe's largest budget airline Ryanair, which posted its first quarterly loss since 2014 on Monday, said it expected further consolidation in the industry over the next 12-18 months due to overcapacity.

It predicted a further rise in oil prices would put the squeeze on smaller airlines that can't afford to increase their oil price hedging. Germania's own financial problems emerged at the start of January when it said it was examining several financing options to secure its short-term liquidity needs.

It said on Jan. 19 it had received a commitment for 15 million euros ($17 million) in funding that would secure its medium and long-term future, but at the end of last week it confirmed media reports that it had delayed paying wages. Air Berlin, which served around 30 million passengers a year filed for insolvency in 2017 and ceased operations. Many of its aircraft were absorbed by bigger rival Lufthansa. ($1 = 0.8763 euros) (Editing by Keith Weir)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Sustainable Fashion: UNDP wants you to wear properly to reduce Global Warming 

The experts have estimated that the amount of water used to prepare one pair of jeans and a T shirt is sufficient for a person to drink for 13 years....

World Economic Forum suggests 8 Education Models for Future Schools

In a report released on January 14, the World Economic Forum WEF has also picked two examples for each model from throughout the world. The WEF has emphasized that these schools systems would be crucial for Forth Industrial Revolution.&#160...

Videos

Latest News

Owaisi attacksMohan Bhagwat over reported remarks on two-

Slamming RSS chief Mohan Bhagwat over his reported statement proposing a law making two-child norm mandatory in the country, AIMIM President Asaduddin Owaisi has alleged that the NDA government failed to even address the employment problem ...

Bodies of Ukrainian victims of downed plane repatriated from Iran

Kiev, Jan 19 AFP The flag-draped coffins of the 11 Ukrainians who died in a plane mistakenly shot down by Iran amid heightened tensions with Washington arrived in Kiev on Sunday. President Volodymyr Zelensky, Prime Minister Oleksiy Goncharu...

UPDATE 1-UK government considers moving House of Lords to York - Conservative chairman

Moving Britains upper house of parliament to the northern English city of York is one of a range of things the government is looking at to level up different parts of Britain, Conservative chairman James Cleverly said on Sunday. In last mon...

Mumbai Marathon: 64-year-old runner dies of heart attack

A 64-year-old man died after suffering a heart attack while running in the Tata Mumbai Marathon 2020 on Sunday morning, officials said. Gajendra Manjalkar, a resident of Nalasopara in neighbouring Palghar district who had been participatin...

Give Feedback