Germania, German airline based in Berlin that was founded in 1978, on Monday filed for insolvency and ceased all operations.
The airline that started its operations mostly as a charter airline had expended to scheduled operations in recent years and had 37 airplanes at the time of collapse.
Here’s an excerpt from DW (access their piece here):
Berlin-based Germania airline has stopped all flights and applied for bankruptcy after failing to cover a “short-term liquidity problem.” The carrier had been transporting over four million passengers a year.
The Berlin-based company cancelled all flights and advised passengers to contact their travel agents about alternative arrangements.
The mid-market airline ran flights to around 60 destinations in Europe, Africa, and the Middle East, transporting more than four million passengers per year.
After boasting of a monetary windfall of over €15 million ($17.16 million) in January, the company said last week that their staff had not received their salaries for the entire month of January.
Here’s the announcement from the airline (access their website here):
BERLIN – 05 February 2019 – Germania Fluggesellschaft mbH, its sister maintenance company Germania Technik Brandenburg GmbH as well as Germania Flugdienste GmbH filed for insolvency at Amtsgericht Berlin-Charlottenburg on Monday, February 4, 2019. Flight operations will be terminated in the night from February 4 to February 5. Germania’s employees have been informed. Swiss airline Germania Flug AG and Bulgarian Eagle are not affected by this step.
Karsten Balke, CEO Germania Fluggesellschaft mbH, said: “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.”
Those Passengers affected by the suspension of flight operations who booked their Germania flight as part of a package holiday can contact their respective tour operator in order to organize substitute carriage. For passengers who have booked directly with Germania, there is unfortunately no entitlement to substitute carriage.
Germania’s short-term liquidity need emerged mainly due to unforeseeable events such as massive increases in fuel prices last summer and the simultaneous weakening of the euro against the US dollar, considerable delays in phasing aircraft into the fleet and an unusually high number of maintenance events that the airline’s aircraft required were major burdens for the company.
Let’s see if there are more casualties in European aviation this year. Airberlin, Monarch, Cobalt and Primera have all collapsed in the past 18 months.
This is a good reminder that you should ALWAYS pay for airline tickets using a credit card just in case. Those that paid using debit cards, cash or direct debits/bank transfers (popular in Germany) are basically unsecured creditors and unlikely to recover anything.