February 6, 2019 - 10:44 AMT
PanARMENIAN.Net - Holiday airline Germania collapsed on Tuesday, February 5 and cancelled all flights, including those to Armenia, the latest to succumb to turbulence in the European airline industry as it failed to secure financing to navigate a short-term cash squeeze, Reuters reports.
The insolvency of the German company, which carried about 4 million passengers a year, followed the failure of Germany’s second-biggest carrier, Air Berlin, in 2017.
Britain’s Monarch Airlines and Alitalia also filed for insolvency in 2017. German charter carrier Small Planet Airlines hit financial trouble last year after an expansion drive.
Germania cited rising fuel prices, a stronger dollar, delays in integrating new aircraft into its fleet and high maintenance costs.
“Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion,” Chief Executive Officer Karsten Balke said in a statement.
The carrier’s 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. The Berlin-based company, founded in 1986, also offered flights to less conventional destinations including Iran, Iraq and Armenia.
It said all flights had been halted overnight after it filed for bankruptcy late on Monday.