28 Aug, 2010
Mexicana stops flying
Current management received the company in a state of technical bankruptcy seven days ago after it filed for protection under Mexico's insolvency laws
Financial deterioration and lack of agreements force Grupo Mexicana to stop flying
Grupo Mexicana deeply regrets any inconvenience caused to passengers
Nuevo Grupo Aeronáutico, S.A. de C.V. ("Grupo Mexicana") announced this morning that as a result of the group's delicate financial situation when it changed owners a week ago, compounded by failure to reach agreements that would allow for the capitalization of its three airlines, Mexicana Airlines, MexicanaClick and MexicanaLink flights will suspend operations until further notice as of midday (12:00 p.m.) on Saturday, August 28, 2010.
Among the factors that have contributed to this announcement are:
1. Grupo Mexicana's fragile financial situation, which has deteriorated
further over the last four weeks due to the previous management's
decision to suspend ticket sales, forcing the company to continue
operating in the interests of passengers without receiving any revenue.
2. No substantial agreements were reached to give companies in the Group
long-term viability.
3. Lack of effectiveness in the insolvency (Concurso Mercantil) process
intended to protect additional financial resources available to the
company so it could to continue operating.
4. Given the uncertainty of the situation, certain suppliers have begun
demanding advanced payment of services that are essential to the
airlines' operations.
Today's decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company's long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to. We hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding.
If you have bookings or/and have paid for a Grupo Mexicana flight and have a reservation code, we would like to inform you that:
1. All Mexicana, MexicanaLink and MexicanaClick flights will be suspended
until further notice as of midday on Saturday, August 28, 2010. All
flights programmed to depart after this hour will be canceled.
2. Grupo Mexicana deeply regrets any inconvenience this decision may cause
and will continue to assist passengers to the full extent of its
abilities. Passengers who have already flown a leg of their journey and
who are scheduled to fly with a Grupo Mexicana airline after Saturday,
August 28, 2010 are advised to consult the websites or contact us at the
numbers listed below. Priority will be given to minors traveling
unaccompanied, passengers traveling with children under age 3 and
special needs passengers.
3. If you have not yet begun your journey, we recommend you make
alternative travel arrangements.
4. For information on how to apply for a refund, visit www.mexicana.com or
www.cmainforma.com or contact us at any of the numbers listed below:
Mexico City
5448-8634
5998-5998
Elsewhere in Mexico
01 800 837 6150
01 800 801 2010
United States and Canada
1 877 801 2010
1 888 882 9994
17 Aug, 2010
Kiss Flights & Flight Options collapse
News reports state that London-based travel company Flight Options Limited, trading principally as Kiss Flights, ceased trading this evening, and the Civil Aviation Authority (CAA) has stepped in to protect holidaymakers.
The CAA estimates that around 13,000 people are currently overseas – all of them will be able to complete their holidays and return to the UK due to the CAA’s ATOL protection.
Around 60,000 people have forward bookings with the company and should be able to claim a full refund for the ATOL-protected elements of their holiday from the CAA. Because the company has failed at the height of summer, the CAA is also putting in place arrangements to allow people to travel out on their holidays for the next 24 hours, to minimise confusion and protect passengers.
Flight Options sold charter flights to Mediterranean destinations, under ATOL 4233 mainly through travel agents. The CAA will be arranging repatriation for all Flight Options customers in line with the scheduled end of their holiday.
For further information visit:
http://www.caa.co.uk/application.aspx?catid=14&pagetype=65&appid=7&newstype=n&mode=detail&nid=1909
11 Aug, 2010
Theme Park Tickets Direct goes bust
News reports state that ThemeParkTicketsDirect.com, based in central London, ceased trading this week meaning it will not dispatch any more tickets.
It was an agent for attractions worldwide but was particularly popular for those booking Disney days out.
The news will be a particular blow to families with theme park plans during what is now the peak summer holiday period.
However, those who booked tickets that cost over £100 on a credit card, or on a Visa card for any amount, should urgently try and claim a refund.
30 Jul, 2010
Grupo Mexicana de Aviacion critical financial situation
News reports state Grupo Mexicana de Aviacion, Mexico’s biggest airline by passengers, said its financial situation is “critical” and the company will present shareholders with proposals to keep the carrier operating.
Executives and investors held an extraordinary meeting today in Mexico City to review the airline’s “difficult” financial circumstances, and couldn’t decide on whether to file for bankruptcy, said Adolfo Crespo, a Mexicana spokesman.
“The company is analyzing all options and resources,” said Crespo said, who declined to elaborate on the airline’s finances. Mexico City-based Grupo Posadas SAB bought Mexicana from the government in 2005.
The discussions came a day after lessor Air Canada seized two planes in what Mexicana called a misunderstanding. Mexico City’s El Universal newspaper reported yesterday that Mexicana told its pilot and flight attendant unions it was considering bankruptcy, a sale to the labor groups or an operational restructuring plan.
* Cover is excluded under the terms of all IPP's policies for cover effected or tickets issued on or after 30th July 2010.
20 Jul, 2010
Air Pacific loses big
News reports state that Qantas' hopes to sell its Air Pacific shares have been dampened as the Fijian carrier announced last financial year as the worst in its history.
Air Pacific reported last week a net loss of FJD65.3 million for the year to March, a marked contrast to the FJD12.5 million loss from a year earlier.
"While much of the 2009/10 losses were due to lower fares caused by increased competition, the impact of the global financial crisis and fuel hedging losses, last year's results are clearly unacceptable," Air Pacific chief executive Dave Pflieger said.
02 Jun, 2010
Fly Direct placed into liquidation
News reports state that Fly Direct Ltd, a company which heavily marketed direct flights to Wanaka from Christchurch and Wellington for the ski season, has collapsed before it got off the ground.
Companies Office records show the company has been placed in liquidation. Damien Grant of Waterstone Insolvency is handling the liquidation. A message on the company's website also advises of the liquidation.
27 May, 2010
Iraqi Airways to be closed following bankruptcy
News reports statet that Iraq has blamed Kuwait for its flag-carrier's failure. The Iraqi government has said it will close the state-owned Iraqi Airways after declaring it bankrupt.
Iraq's transportation ministry told reporters the airline would be closed following a damaging dispute with Kuwait over war reparations.
Kuwait Airways says the Iraqi flag carrier owes it about $1.2bn for aircraft and plane parts taken during the Iraqi invasion of Kuwait in 1990.
All scheduled Iraqi Airways flights have been cancelled.
14 May, 2010
Ghana International Airlines (GIA) shuts down
News reports reaching Asempa News indicate that workers of Ghana International Airlines (GIA) have been asked to go home until further notice.
This is the latest after a series of flights were cancelled owing to contractual agreements between GIA and its partners in the United Kingdom and the recent volcanic eruption in the Iceland.
The Ghana International Airlines has been in the news in recent times for the bad reasons – it has been grounded on a number of occasions, as well as its former officials been hauled to court for roles they played in managing the airline.
There was confusion at the offices of the GIA Friday morning when passengers of the airlines who were billed to travel this week had their flight postponed indefinitely.
Sources say passengers threw stones at officials of the airlines.
A staff of the GIA who spoke to Asempa News on condition of anonymity said they are yet to be told when to report to work.
Meanwhile, an insider tells Asempa News government has taken over the beleaguered airlines.
Moreover, the Managing Director of GIA Mrs. Gifty Annan-Myrs is said to have been summoned by the Minister of Transportation Mike Hammah over the latest development.
At the time of filing this report, the meeting was underway at the ministry.
13 May, 2010
Cyprus Turkish Airlines faces bankruptcy
News reports state THE NORTH’S Cyprus Turkish Airlines (KTHY), faces possible bankruptcy after the company that maintains its aircraft sent in bailiffs to seize US$12 million worth of outstanding debts.
The move came on Monday, when Turkish Technics, a Turkish-based maintenance company linked to the Turkish national carrier Turkish Airlines (THY), called in a long-standing debt, affectively freezing KTHY’s assets.
27 Apr, 2010
Ritz-Carlton hotel at Lake Tahoe goes into default
News reports state that The new Ritz-Carlton luxury hotel at Lake Tahoe has gone into default, the latest sign of trouble for the lake economy and one of its top developers.
The default notice is the first step toward possible foreclosure. It was filed against the Northstar-area hotel March 31, about a month after its developer, East West Resort Development of Avon, Colo., put nearly $1 billion worth of Northstar real estate development into bankruptcy reorganization.
22 Apr, 2010
Airline financial pressures due to Volcanic Ash
News reports state that with air traffic beginning to return to normalcy in Europe, airlines are tallying the bill for the six-day disruption in service caused by volcanic ash, with IATA estimating cumulative lost revenue at $1.7 billion.
Almost all European airspace was available for commercial flights Wednesday, with more than 75% of scheduled flights expected to take place, the first day more than half had operated since April 14 Air France, for example, confirmed it was able to operate a "nearly" normal flight schedule. The one airline still seriously affected was Finnair owing to heavy concentrations of ash in airspace above southern Finland.
IATA said the brunt of the revenue hit was borne by Europe's carriers. British Airways estimated that lost passenger and cargo revenue combined with costs incurred supporting stranded passengers amounted to £15 million ($23 million)-£20 million per day. Ryanair said it expects it lost €6 million ($8.1 million) per day April 15-22.
At the peak of cancellations over the weekend and Monday, airlines were losing $400 million in revenue daily, IATA said. DG and CEO Giovanni Bisignani said the airspace closures "impacted 29% of global aviation and affected 1.2 million passengers a day. The scale of the crisis eclipsed 9/11 when US airspace was closed for three days."
14 Mar, 2010
Varsity Express: Baby Branson’s bogus business
News reports state that a young aviation entrepreneur, who styled himself “Baby Branson” when he set up an airline at 19, has admitted his latest venture, which collapsed last week, was based on false claims and little more than thin air.
On March 1, Martin Halstead, 23, launched Varsity Express, an airline operating daily return flights between Oxford and Edinburgh. When it came to grief after just a few days, there was widespread sympathy for a plucky young man.
10 Mar, 2010
Additional layoffs ahead as Aer Lingus plunges to loss
News reports state that Aer Lingus Group reported a loss before taxes and exceptional items of €66.2 million ($90.4 million) in 2009, reversed from an €18.8 million profit in 2008, and a quadrupling of its operating loss to €81 million from €20 million.
03 Mar, 2010
Air Slovakia ceases operations
News reports state that Air Slovakia ceased operations Tuesday owing to financial troubles and unpaid debts. It is the third Slovakian airline to shut down in the past six months following SkyEurope Airlines and Seagle Air.
12 Feb, 2010
Blue Wings announces its insolvent, services suspended
News reports state that Blue Wings announced that it was insolvent yesterday, a month after suspending service. The Dusseldorf-based carrier said that "insolvency has become unavoidable since our principal Russian investor [48% shareholder Alexander Lebedev] has not kept his financial promises over the past several months." There is no indication that the carrier may resume flights, and no information was available regarding CEO Jorn Hellwig's effort to purchase Lebedev's stake. Hellwig owns 26% of Blue Wings
05 Feb, 2010
BA makes record losses
News reports state that British Airways posted its worst ever financial performance and scrapped its dividend today as high fuel prices and a collapse in business travel forced the airline into a loss of £401m.
BA swung from a record profit last year to its biggest deficit since privatisation in 1987 after it was hit by a near-£3bn fuel bill, the weak pound and the sudden deterioration in its most important market, transatlantic business customers, due to the banking crisis.
In a grimly pessimistic set of annual results, Heathrow airport's largest airline declined to offer investors new guidance for this year because of the dire state of the airline market.
Willie Walsh, BA's chief executive, confirmed that no upturn was in sight. "I don't think the economic environment will improve. We don't see any signs of recovery, nothing, right across the globe in all the markets we operate in," he told Guardian.co.uk.
Shares in the flag carrier fell 6.6% to 152p in early trading as Walsh added that, despite signs of the downturn bottoming out in the US, he saw "no green shoots".
19 Jan, 2010
JAL files for bankruptcy administration
News reports state that Japan Airlines Corp said on Tuesday it had filed for bankruptcy administration with 2.3 trillion yen ($25.4 billion) in debt as of the end of September, as it seeks to revive itself under a state-backed restructuring plan.
The Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms, has said it will support the carrier.
23 Dec, 2009
Spanish Air Comet collapses as administrators impound planes
News reports state that Spanish low cost carrier Air Comet has gone bust, cancelling all services and leaving thousands of passengers stranded after all of the airline’s aircraft were impounded by creditors on Tuesday.
Air Comet largely operates services out of Madrid to destinations in Latin America including daily services to Argentina Ecuador and Peru, and with its collapse left thousands stranded days before Christmas.
16 Dec, 2009
Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration
News reports state that Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration this evening.
Last year the airline, which employs 600 staff, carried more than 1.5m passengers and operated 12,000 flights.
A statement is expected soon from PricewaterhouseCoopers, (PWC) which has been appointed as administrator.
The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today.
Many of those flying with the airline booked online or direct with the company and not through a registered travel agent, leaving them potentially out-of-pocket.
Flights booked this way will not be reimbursed, though those who booked with a credit card or had arranged their own insurance may be covered.
Ryanair has said it will launch a Flyglobespan "rescue fare" to and from Edinburgh and Prestwick airports for any passengers affected.
The Ryanair offer applies to flights into and out of Prestwick to Alicante, Faro, Gran Canaria, Lanzarote, Malaga, Palma and Tenerife, and into and out of Edinburgh to Alicante, Gran Canaria, Lanzarote, Malaga and Tenerife.
10 Dec, 2009
Serbia's Jat Aiways seen facing reform or demise
News reports state that Serbia's state airline Jat Airways is seen having to become more competitive or fade away after the European Union relaxed travel between Belgrade and the bloc, prompting rivals to step up penetration of its home market.
After years of bolstering by the government and protection against outside competitors, the stakes have increased dramatically for Jat following the EU's decision allowing Serbs, FYR Macedonians and Montenegrins to travel visa-free to the EU.
27 Nov, 2009
WizzAir suffers €9.5 million in losses
News reports state that the low-cost Budapest-based airline company WizzAir recorded group-level losses of €9.5 million in the business year ended in March 2009, while the company has so far said it is profitable, the business daily Napi Gazdaság reported on Friday, quoting the on-line issue of the Czech newspaper Mlada Fronta Dnes.
15 Nov, 2009
Flyglobespan stave off collapse with last minute cash injection
News reporst state that Flyglobespan, Scotland's biggest airline, is believed to have staved off collapse with a last-ditch cash injection on Friday evening.
Administrators were lined up to handle the airline's collapse but directors at Globespan Group managed to secure new funding at the 11th hour. But it is not known whether the additional cash has secured the long-term future of the airline.
It's believed that the Civil Aviation Authority, the industry regulator, was informed about the possible collapse of "an airline". Contingency plans to repatriate thousands of passengers who would have been left stranded by a collapse are thought to have been drafted.
The troubled group also operates baggage and check-in facilities for rival budget airline FlyBe at Glasgow and Edinburgh airports. And last year the company won contracts from the Ministry of Defence to fly to the
06 Nov, 2009
British Aiways record £292 million loss
News reports state British Airways has plunged to a record pre-tax loss of £292m over the past six months, traditionally its most profitable trading period, as the airline fights to stave off Christmas strike action that will deepen its financial woes.
British Airways chief executive, Willie Walsh, warned BA's 38,690 staff that the airline's worst first half results since privatisation made further cost reductions "essential".
09 Oct, 2009
Kingfisher yet to settle fuel dues with BPCL
News reports state that - The state-owned Bharat Petroleum Corporation (BPCL) and the Vijay Mallya-controlled Kingfisher Airlines have not been able to reach common
ground on the settling of dues that Kingfisher owes to the oil marketing company.
Kingfisher counsel Navroz Seervai disputing the claim of insolvency, argued that the airline was paying about Rs 130 crore to another petroleum major for the monthly supplies. He also said the airline could not pay anything more than Rs 10 crore a month, bringing to the court’s notice that in view of the economic downturn, all major airlines were going through a bad patch
28 Sep, 2009
Japan minister says JAL won't be liquidated
News reports state that Japan's transport minister said Sunday he will not force the struggling Japan Airlines, Asia's biggest airline, into bankruptcy.
"We will not crush and liquidate (the airline)," Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show. "It's just impossible."
A team of government-appointed corporate turnaround experts was set up Friday to create a restructuring plan for the airline, whose own draft reconstruction plan Maehara called "insufficient."
The team will make a recommendation to the transport minister by late October or early November.
Officials from the airline and the transport ministry were not available for comment Sunday.
The airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June, and has forecast a net loss of 63 billion yen ($701 million) for the current fiscal year to March 2010. JAL was privatized in 1987.
JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen ($668 million) in loans from the government-owned Development Bank of Japan in June.
In his meeting Thursday with the transport minister, JAL President Haruka Nishimatsu revealed that the airline is short 450 billion yen ($5 billion) through March 2011, money that is needed for debt repayment, according to media reports. Nishimatsu reportedly told Maehara that JAL was planning to cover part of the payment by selling off its in-flight meal catering unit and reviewing company pension plans.
JAL's original restructuring scheme also included 6,800 job cuts, or around 14 percent of its workers.
The airline has reportedly been in talks on financial tie-ups with several top airlines including Delta Air Lines Inc., the world's biggest airline operator, its rival American Airlines Inc. and Air France-KLM, Europe's biggest airline group.
25 Sep, 2009
JAL (Japan Airlines) on the brink of collapse
News reports state that Japan Airlines is teetering on the brink of collapse as the government refused calls to save it from a $15 billion debt pile yesterday (September 24).
A Japanese government task force has now been formed which may split the carrier into “good” and “bad” parts. It will report back at the end of November.
The request for the bail out was made by JAL president Haruka Nishimatsu at a meeting with Japan’s new transport minister, Seiji Maehara, as reported yesterday.
02 Sep, 2009
IATA: Second-quarter losses plunge past $2 billion
News reports state that IATA said 54 airlines that have reported second-quarter financial results have lost a combined $2.02 billion, a figure signifying a "further deterioration" the organization said is troubling considering that carriers "usually make 50% of their profits in this seasonally strong quarter."
The reporting carriers lost $926 million in the year-ago period and approximately $4 billion in the 2009 first quarter, IATA said in an Airlines Financial Monitor released yesterday. The industry's second-quarter operating loss of $468 million compared to a $2.3 billion profit in the 2008 second quarter.
Twenty North American airlines lost a combed $134 million last quarter, narrowed 68% from $419 million in the year-ago period. Twelve European carriers suffered a $1.1 billion loss, reversed from a $439 million profit, while 16 Asia/Pacific airlines lost $1.29 billion, widened 34.7% year-over-year.
01 Sep, 2009
SkyEurope collapses, thousands stranded abroad
News reports state that Slovakia-based no-frills airline SkyEurope has suspended all its operations because of what it described as a “lack of suffucient interim funding”.The airline has been in bankruptcy protection since June but said it had found investors to secure its future.However, it suspended all flights earlier today, and trading in its shares was suspended on the Vienna stock market.
SkyEurope one of Europe's largest airlines flew mainly in eastern Europe but operated five routes from Luton, including Vienna and Prague.
30 Jun, 2009
Airlines being financially squeezed
News reporst state that the world's airlines lost more than $3 billion in the first quarter of 2009, the International Air Transport Association (IATA) said on Tuesday, maintaining its estimate for full-year losses of $9 billion.
In its latest snapshot on the industry, the Geneva-based lobby said weak travel demand and lower freight volumes in the global recession had bled revenues for major carriers, in "a significant deterioration from last year."
"This deterioration was before the recent rise in fuel prices," IATA said, warning the 30 percent increase in oil and jet fuel prices since early May would squeeze airline cash flows further in coming months.
22 Jun, 2009
Lufthansa's financial outlook deteriorates
News reports state that Lufthansa's forecast of a "distinctly positive" full-year operating profit is in jeopardy, it said Friday, and it now is focused on "avert[ing] an operating loss in the current financial year."
Chairman and CEO Wolfgang Mayrhuber confirmed two weeks ago that the company expected a 10% drop in passengers and a 20% fall in revenue this year. It reported a €256 million first-quarter net loss and a €44 million deficit on the operating level.
21 Jun, 2009
JAL looks set for $1 billion government loan
News reports state that the Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said.
Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.
02 Jun, 2009
British Airways Faces 'Fight For Survival' Says CEO
News reports state that British Airways is facing a "fight for survival," its chief executive said. "It's critical that we all recognize that the diagnosis for our airline is now critical," Willie Walsh wrote in the airline's staff newspaper.
He said the crisis facing the aviation industry "has never been more serious."
"There has been a significant shift in consumer attitude, with people wanting more and paying less. And things are getting worse. We haven't yet reached the bottom and everything points towards a protracted downturn," he said.
Walsh said some areas of the business had made progress on pay and productivity negotiations but elsewhere change "has been slow."
20 May, 2009
Travel plans in disarray as OzJet grounded
News reports state that Passengers at Perth Airport are furious after their travel plans were thrown into disarray today. The effective grounding of OzJet’s operations in Perth over unpaid airport charges has affected thousands of Bali holiday makers. The grounding of the airline, which operates to Derby and twice weekly Bali charters for IndoJet, is due to unpaid airport charges. Perth Airport chief executive Brad Geatches told thewest.com.au that it would not process its passengers because the airport was owed more than $200,000 in back payments.
15 May, 2009
Air Fiji closed down
News reports state that the government and the representatives of the Tuvalu government are yet to meet to discuss the future of Air Fiji Limited which has closed all its offices in the country. The Tuvalu government which has 51% shares in Air Fiji has not given any reason for the closure of Air Fiji and has said that its representatives will meet with the Fiji government to discuss the matter.
* In conjunction with the terms of our policy cover is therefore excluded for this airline with immediate effect
17 Mar, 2009
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
SkyAirWorld collapses
News reports state that collapsed Australian regional carrier SkyAirWorld looks unlikely to return to the skies without a major cash injection from an angle investor.
The airline ceased operations after its five leased Embraer jets were repossessed back on Friday, March 13. It reportedly owes $10 million in payments.
Liquidators have been appointed, PA Lucas & Co, and they are assessing the unlikely potential for the carrier to continue trading.
** Under the terms of IPP's policies, cover is excluded for policies or tickets boughts on or after 13th March 2009.
30 Jan, 2009
Australia's MacAir leaves passengers stranded
News reports state MacAir's sudden move into receivership has meant thousands of its passengers are now left stranded.
All of today's flights were suspended, says an official at MacAir who wishes to remain anonymous.
She says the airline is offering passengers a full refund on tickets.
The official was unable to say when flights will resume because the carrier is now in administration and receivership.
MacAir late yesterday appointed Jonathan McLeod as administrator. He is principal of Brisbane-based corporate restructuring and insolvency firm McLeod & Partners.
One of the airline's largest creditors, Australian banking giant Suncorp-Metway, also earlier today appointed Justin Walsh as receiver and manager. He is from the Brisbane office of accounting firm Ernst & Young.
The state's transport minister John Mickel says in a statement today that it was the receiver that grounded the airline's entire fleet.
He says: "The director-general of Queensland Transport met today with the receivers ...and the receiver advised that it would seek to have flights resume as soon as possible".
** Under the terms of IPP's insurance policies cover is excluded for policies or tickets bought from today
25 Jan, 2009
Nordic Airways looses license due to financial problems
News reports state that Nordic Airways, a Stockholm-based airline that launched its first commercial flights between western Europe and Baghdad earlier this month, has had its operating license revoked due to financial troubles, a Swedish Transport Agency official said Saturday.
Agency spokesman Anders Lundblad said the license was pulled Friday after the Stockholm County Court rejected the company's request for an extension to restructure itself.
Lundblad said passengers could be stranded because the fleet was grounded with immediate effect.
"It's very possible, since they can't fly back with them," he said.
Nordic Airway officials did not immediately return calls seeking comment.
In its decision, the agency cited the airline's ailing finances, saying it could "no longer fulfill its commitments and obligations toward its passengers."
Nordic Airways launched its Copenhagen-Baghdad route in the beginning of January with flights planned once a week between the Danish and Iraqi capitals.
The company had its permanent license replaced with a time-restricted temporary permit in October after it had applied for reconstruction due to financial difficulties. That license was due to expire on Feb. 15.
17 Jan, 2009
FlyLAL grounded stranding passengers
News reports stat that Lithuania's national carrier, FlyLAL-Lithuanian Airlines, had its operating certificate revoked Friday over fears that its financial troubles could affect flight safety.
As a result of the move, which was announced by the Lithuanian Civil Aviation Administration (LCAA), all FlyLAL-Lithuanian Airlines flights will be grounded indefinitely from Saturday.
'The certificate has been suspended due to the poor financial condition of FlyLAL,' said Kestutis Auryla of the LCAA.
Under the terms of IPP policies cover is no longer available for insurance or tickets issued with immediate effect
11 Jan, 2009
Zambian Airways suspends operations
News reports state that Zambia's privately-owned carrier Zambian Airways said on Saturday it had suspended operations with immediate effect, citing high fuel costs over the last year-and-a-half and the need to restructure its operations.
The airline said in a notice to passengers at Lusaka airport that it had experienced difficulties after jet fuel rose 100 percent in the last 18 months, increasing its operational costs by 50 percent.
"This created a lot of problems for Zambian Airways as a growing business. In the interest of our stakeholders and our employees, we have decided with immediate effect to suspend all our operations until further notice," it said.
Dozens of passengers flying to South Africa were left stranded, eye witnesses said.
09 Dec, 2008
Advantage Rent A Car files for bankruptcy
News reports state that Advantage Rent A Car has filed for reorganization under Chapter 11 in the bankruptcy court of Minnesota.
The San Antonio, Texas-based company said it is exploring options such as reorganization, a sale or a merger. As a result of financial strain, Advantage said that it is immediately consolidating its network of rental locations to focus efforts on the most profitable, highest volume sites.
* Under the terms of the ProtectMyHoliday policy cover will be excluded for this company in respect of policies issued from 9th December 2008
05 Dec, 2008
Flightline collapses
News reports state that Flightline Ltd, the Southend airport-based airline, went into administration yesterday.
10 Nov, 2008
Alma de Mexico Airlines files for Bankruptcy
News reports state that Alma de Mexico suspended operations and filed for bankruptcy last Friday, citing the "crisis" in the industry and global economy.
29 Oct, 2008
Sterling European Airlines to File for Bankruptcy Protection Today
News reports state that Sterling Airlines A/S will file for bankruptcy today after its Icelandic owner ran out of capital to support the business and after the company was unable to enter a deal to divest itself.
``Negotiations have been conducted with several potential investors, but it was impossible to make ends meet,'' the company said in a statement on its Web site today. ``The inevitable result is that Sterling Airlines has no option but to file for bankruptcy.''
Sterling's owner Palmi Haraldsson had sought to find a partner for the airline, after rising fuel costs and less demand for air travel reduced the company's profitability. Haraldsson's plans to inject enough capital in the company to keep it liquid until 2009 were undermined by the collapse of the Icelandic financial system, Sterling said. Iceland on Oct. 24 secured a $2.1 billion loan from the International Monetary Fund.
``Over a three- to four-week period, the whole financial system melted down, and that resulted in our shareholder being unable to continue his support to the company,'' Sterling said.
Sterling customers who bought their tickets on the company's Web site won't be refunded, according to the statement.
17 Oct, 2008
Lte International Airways ceases operations
Their website staets
"Lte International Airways S.A. wish to inform you that due to the financial situation of the company, that make it difficult to meet the operational expenses in the next days, we have had to suspend our charter and scheduled operations.
Lte is doing everything to minimize the impact of this suspension of services on its clients and providers. After 20 years operating with maximum dedication to our clients it just was not possible to avoid this situation given world events lately.
We apologize for the inconvenience this may cause to our passengers, clients and suppliers.
Lte International Airways S.A."
01 Oct, 2008
AIRUnion shuts down
News reports state that AiRUnion, the failed Russian airline alliance that comprised five carriers, ceased to exist Tuesday as the management company shut down.
The Russian government intended to replace AiRUnion with a state-owned grouping of nine airlines, but AiRUnion COO Gustav Baldauf said that "we are still working on a concept for a follow-up company" and that decisions on how the replacement alliance would function "will take some time."
Talks with the government are on hold and Atlant-Soyuz Airlines, the Moscow-owned carrier that was supposed to take over AiRUnion's flights, still is awaiting certification to do so.
19 Sep, 2008
Alitalia 'on the edge of an abyss'
News reports state that Berlusconi: Alitalia 'on the edge of an abyss' after CAI withdraws rescue offer.
Alitalia's future is in serious doubt after Italian investment group CAI yesterday withdrew its €1 billion ($1.4 billion) offer to rescue the airline.
"I received confirmation from CAI that it has withdrawn its offer," Prime Minister Silvio Berlusconi told reporters. "We could be on the edge of an abyss." He previously had warned AZ's workers that there was "no alternative" to CAI's plan and all 20,000 employees would lose their jobs if talks between labor and the investment consortium collapsed.
Six of the carrier's nine unions, including pilots and flight attendants, refused to accept concessions contained in the CAI proposal. A deadline set by the consortium passed yesterday without labor groups' agreement to the rescue plan and CAI issued a statement saying its members had "unanimously" voted to withdraw their offer.
While the airline's aircraft were expected to fly today, AZ Administrator Augusto Fantozzi said earlier this week that money needed to keep the airline operating was "about to run out."
17 Sep, 2008
Olympic Airways to shut down
News reports state that Olympic Airlines will be shut down and restarted as Pantheon Airways early next year pending European Commission approval of a Greek government plan to rescue the loss-making carrier. Under the plan, Pantheon would be privatized, likely including foreign investment. It would continue operating Olympic's domestic network but would cut back international routes and be about 65% of Olympic's size. Several thousand jobs would be eliminated. Greek Minister of Transport Kostas Chatzidakis said OA is one of Europe's worst performing companies and cannot continue in its current form.
12 Sep, 2008
XL Travel Group (XL Airways) Bust - Thousands Stranded
News reporst state that XL Leisure Group Plc, the U.K.'s third largest tour operator, went into administration early today, leaving tens of thousands of passengers stranded, with the company blaming rising fuel costs and the economic slowdown.
The U.K.'s Civil Aviation Administration said as many as 89,000 people could be stranded overseas with another 200,000 holding advanced bookings with the privately held company and its units.
XL Leisure, XL Airways UK Ltd., Excel Aviation Ltd., Explorer House Ltd., Aspire Holidays Ltd., Freedom Flights Ltd., Freedom Flights (Aviation) Ltd., The Really Great Holiday Company Plc, Medlife Hotels Ltd., Travel City Flights Ltd. and Kosmar Villa Holidays Plc are all in administration, XL said in a statement on its Web site this morning.
``The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding,'' XL said in the statement.
29 Aug, 2008
Alitalia board OKs bankruptcy protection
News reports state that Alitalia's board on Friday formalised a request to seek bankruptcy protection, Corrado Passera, the CEO of the stricken carrier's sale adviser Intesa Sanpaolo said.
29 Aug, 2008
Airline collapse hits thousands
News reports state that hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom.
The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.
22 Aug, 2008
AiRUnion - financial problems impact operations
News reports state that Russian airline alliance AiRUnion is facing significant financial troubles and having trouble paying its bills, to the point where aircraft at Moscow Domodedovo, which controls fuel distribution, are not being fueled on time.
21 Aug, 2008
IATA's Bisignani: 'We are in the perfect storm'
News reports state that "We are a fragile industry and we are in crisis; wait and see is no longer an option," was yesterday's assessment from IATA DG and CEO Giovanni Bisignani, who was addressing the Australian National Aviation Press Club in Sydney.
He claimed that despite the recent reduction in oil prices, commercial aviation remains in need of assistance. "We are in the perfect storm of uncontrollable fuel costs and falling demand. Airlines could lose as much as $6.1 billion this year. Already 25 airlines in our financial system have gone bust--greater than immediately following 9/11--and we are bracing for more," he told the gathering.
01 Aug, 2008
BA Chief warns "airlines will go bust"
News reports state that more airlines will go bankrupt this year as rising fuel costs and weak consumer confidence ravage the industry, the chief executive of British Airways warned today.
Willie Walsh said carriers that struggled to make a profit during the recent sales boom will not survive the "worst ever" trading environment the industry has seen. The downturn has put 25 airlines out of business this year, including Luton-based business carrier Silverjet.
"You are going to see more airlines go bust. If you look around there are a lot of airlines out there that have not been profitable in the past few years. Those guys will not survive," he said.
28 Jul, 2008
Trade Winds Airlines files for Chapter 11
News reports state that TradeWinds Airlines announced Monday that it has filed for Chapter 11 bankruptcy protection, citing "a perfect storm" of adverse market conditions and what it called failed financial commitments.
25 Jul, 2008
Aerocalifornia services suspended
News reports state that Aerocalifornia was suspended again by the Ministry of transport and communicatios of Mexico on 23 July 2008 because of unpayed debts the airline has with airports with a sum of USD$25,900,000. The ministry said they will allow the airline to fly again when the money is paid.
17 Jul, 2008
Report Predicts Airline Bankruptcies, Liquidation in 2009
News reports state that a report released Tuesday by Fitch Ratings on the country's top airlines states that numerous layoffs, grounded flights and price increases, in addition to various cost-cutting measures, may not be enough to aid the struggling airline industry from the escalating effects of high oil prices, CNN reports. The report warns that record fuel costs, as well as meager cash flow, may instigate "multiple bankruptcies and liquidation" for major U.S. airlines in 2009 and that recent economic changes by carriers "are not sufficient to counter the devastating impact of jet fuel prices."
12 Jul, 2008
Airline stocks in tailspin over new record-high oil price
News reports state that a new record high for benchmark oil prices sent airline shares spiraling downward. At last check, the Amex Airline Index had shed 3.4% to 14.31 points with all of its 14 components trading down. Crude for August delivery was up $4.85 to $146.50 a barrel on the New York Mercantile Exchange. Earlier it rallied to an all-time high of $146.90 a barrel in electronic trading on Globex. Network carriers were plunging.
11 Jun, 2008
Oil costs will push some Asian airlines under: analysts
News reports state that Record-high oil prices have sparked the biggest crisis in the Asian airline industry since the SARS scare, and analysts say some carriers are likely to go under if prices do not let up soon.
30 May, 2008
ALMOST 10,000 PASSENGERS HIT BY SILVERJET GROUNDING
New reports state that almost 10,000 passengers have been affected by Silverjet ceasing operations this morning.
The Civil Aviation Authority estimates that 7,000 UK and 2,500 overseas passengers have bookings with the business class carrier.
09 May, 2008
EuroManx stops flying
EuroMax Airlines website stated today "It is with great regret that EuroManx have announced today that the company is ceasing operations forthwith with no further flights being operated." News reports state that Euromanx went out of business blaming fuel prices and falling passenger numbers.
04 May, 2008
Sri Lanka's budget airline grounded
News reports state that Sri Lanka's state-run budget carrier has suspended operations indefinitely because of a lack of planes, an aviation official said Sunday.
The budget airline, Mihin Lanka, has been dogged with financial trouble since it began commercial operations last April.
29 Apr, 2008
Nationwide Airlines ceases all flights due to critical cash flow
Nationwide Airlines announced today that they have ceased all flight operations due to critical cash flow following grounding of their aircraft earlier in the year and 30% increased in fuel costs.
27 Apr, 2008
Eos Airlines Files For Bankruptcy
News reports state that Premium class New York to London carrier Eos Airlines on Saturday said it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The company said it could not close on an investment that would have carried it to corporate profitability in 2009.
The petition was filed April 26 in the U.S. Bankruptcy Court in the Southern District of New York. Eos will immediately reduce its workforce, eliminating most of its positions. The carrier will cease operations entirely after April 27.
11 Apr, 2008
Frontier Airlines files for Chapter 11 bankruptcy
News reports state that Frontier Airlines filed for Chapter 11 bankruptcy late Thursday in Manhattan.
10 Apr, 2008
Swazi Express Airways close operations
News reports state that Managing Director Hans Steffan, addressing a press conference at the company premises here yesterday, said operations came to a halt on Friday. Steffan, 39, said he had invested over E10 million into the 12-year old company."Swazi Express Airways has ceased to operate due to unfair competition from the government," he said.
10 Apr, 2008
More than 30,000 passengers hit by Oasis Airlines closure
News reports state that more than 30,000 passengers holding tickets valued at 300 million Hong Kong dollars (38.5 million US dollars) have been affected by the collapse of Hong Kong's first long-haul budget airline, Oasis, travel industry officials said Thursday.
The airline, which offered fares of as little as 1,000 Hong Kong dollars between London and Hong Kong, suspended all flights Wednesday after going into voluntary liquidation.
05 Apr, 2008
Skybus folds
News reports state that Columbus-based airline blames high fuel prices, weak economy -- Surprised fliers find themselves stranded without notice -- 450 lose jobs; failure dims growth prospects for Port Columbus
04 Apr, 2008
ATA Airlines shuts down
News reports state that ATA Airlines, an independent carrier based in Indianapolis, shut down operations yesterday after filing for Chapter 11 bankruptcy protection Wednesday.
30 Mar, 2008
Aloha Airlines Halting Passenger Service
News reports state that Aloha Airlines said Sunday it will halt all passenger service after Monday, signaling the end of an airline that has served Hawaii for more than 60 years.
Aloha, which filed for bankruptcy for Chapter 11 bankruptcy protection on March 20, was a casualty of fierce competition and rising fuel prices. The airline said it will stop taking reservations for flights after Monday.
19 Mar, 2008
Low cost Indonesian airline Adam Air to be shut down
News reports state that Indonesian low-cost carrier Adam Air will no longer be allowed to fly, Indonesian officials said.
31 Jan, 2008
Travel misery after airline closure - City Star Airlines
Travel misery after airline closure
News reports state that Passengers are facing misery after an airline shut down following financial difficulties.
Aberdeen based City Star Airlines on Wednesday said it would cease operations from midnight.
The announcement came after one of the company's planes was impounded at Aberdeen Airport by BAA on Wednesday.
23 Jan, 2008
Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights
News reports statte that Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights, saying it had been stunned by unexpected and unsustainable fourth-quarter losses.
Coast Air was Norway's fourth-largest airline, after SAS Norway, Norwegian Air Shuttle and Wideroe.
18 Jan, 2008
Air Mauritanie liquidated
News reports state that court orderes Air Mauritanie to liquidate assets following ongoing financial crisis.
The Mauritanian court ordered Air Mauritanie liquidate its assets following a financial crisis that has plagued the national air carrier for years, a judicial source said Friday.
26 Dec, 2007
Big Sky Shuts Down Nationwide Operations
News reports state that the airline announced they are ceasing operations nationwide.
The Montana-based airline said they could not make a profit. A spokesperson for the company said that Big Sky is not bankrupt and that all shareholders will be paid. The airline plans to liquidate its assets as quickly as possible.
25 Dec, 2007
Maxjet Airways files for bankruptcy protection
News reports state that Maxjet Airways threw itself onto bankruptcy protection Monday as soaring costs, stiff competition and a deteriorating credit market scuttled the fledgling airline's bid to carve out a niche for itself by catering exclusively to business-class passengers in the trans-Atlantic market.
22 Dec, 2007
FlyWhoosh grounded
News reports state that troubled airine flyWhoosh finally admitted yesterday that its Dundee services have been grounded for good.