Storm clouds gather for ailing SkyEurope

The future of SkyEurope remains in doubt after the continental low-cost carrier was forced to file for bankruptcy protection from its creditors last week.

Followings months of declining passenger numbers, the Slovakia-based airline has sought protection from a Bratislava District Court in an effort to restructure its debt.

Though four of its 14 planes had already been grounded, the low-cost carrier continues to operate services and is actively seeking new investors.

Despite the last-ditch effort, however, financial protection firm ProtectMyHoliday.com has warned that the airline will struggle to recover from administration.

"Companies such as SkyEurope just cannot continue to haemorrhage money," spokesman Paul McLean told The Telegraph. "Airlines and other sectors of the travel industry simply cannot continue with the spiralling events affecting their business."

Around 50 airlines have failed since 2008, including XL Airways and Zoom. The International Air Transport Association predicts a further 20 bankruptcies this year, and Virgin boss Sir Richard Branson has said a major US carrier will be among the casualties.

SkyEurope posted a net loss of 18.9 million euros (£16 million) in 2008, coming on the heels of a 15.7 million euro loss in the previous fiscal year.

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Comments

[roman]

I think that even if SkyEurope manage to fully reorganise its structure, it's always bad to have that kind of advertising...

[r. w. d]

I have made over 50 flights with SKY and they have been good.... until last week, when I had a 6 hour delay. This was accompanied by very poor information and doubt that we would fly at all. The losses over the last 2 years look ominous... this year will be more difficult plus they are losing the confidence of customers.

It is a great shame but perhaps only a takeover will solve their problem. However, the vultures will probably wait for the collapse and then pick over the routes and the planes.

[Tony W]

They owe me 200 euros from a flight they cancelled last November and claim the refund is still being processed. Zero customer service = I now fly Ryanair instead.

[roman]

Ouch that hurts! €200 is a lot for a LCC's flight, especially if you didn't fly. But take care Tony, I just read that in Ireland: "Ryanair was the airline with the most complaints, 62, ahead of Aer Lingus, which received 45."

http://www.irishtimes.com/newspaper/ireland/2009/0702/1224249908490.html