Berlin-based airline shutters with immediate effect after cash-flow problems
The Berlin-based airline Germania has filed for bankruptcy and halted all operations with immediate effect.
After facing a “short-term liquidity problem”, the carrier’s CEO, Karsten Balke, said that there was “no other option” while apologising to both passengers and staff.
All flights due to be operated by the airline were grounded early on Tuesday morning.
A statement issued by the airline said that those passengers who had booked directly with the airline were not entitled to change their arrangements.
Passengers who made bookings through travel agents should be able to make alternative plans.
Last week, it was reported that Germania staff had not been paid for the month of January, despite the carrier’s claims that it had received a windfall of more than $17.16 million (€15 million).
The statement said that Germania’s cash-flow problems were down to fuel increases, the weakening of the euro against the dollar, delays in new aircraft and a high number of required repairs.
Germania flew more than four million passengers a year and had been operating for over 30 years. It operated out of 18 airports to 60 different destinations.
Swiss airline Germania Flug and Bulgarian Eagle are not affected.
Balke said in the statement: “Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion.
“We very much regret that consequently, our only option was to file for insolvency.
“It is of course the impact that this step will have on our employees that we regret the most.
“All of them as a team always did their best to secure reliable and stable flight operations — even in the stressful weeks behind us.
“I would like to thank all of them from the bottom of my heart.
“I apologise to our passengers who now cannot take their Germania flight as planned.”