Monday, August 3, 2020

Airlines bankrupted due to Covid 19 as at July 2020

  • On 11 February 2020, Air Italy ceased its own operations. This decision was made following the shareholders' meeting of Air Italy (Alisarda and Qatar Airways through AQA Holdings spa). According to the airline, its flights were operated by other carriers according to the original schedule between 11 and 25 February. On 19 February, Air Italy reopened ticket sales for two public service obligation (PSO) routes, Milan Linate-Olbia and Rome-Fiumicino-Olbia, and planned to operate them between 14 March and 16 April 2020, the date of PSO contract expiry. The airline operated the routes until 3 February 2020, when the Olbia Costa Smeralda Airport closed due to maintenance works for 40 days.
  • The Turkish airline AtlasGlobal collapsed on 12 February 2020.
  • British airline Flybe, already struggling financially prior to the virus outbreak, entered administration on 5 March 2020 due to the effects of coronavirus.
  • Charter airline Miami Air International filed for Chapter 11 bankruptcy on 24 March and ceased all operations on 8 May.
  • Trans States Airlines, the sister company of Compass Airlines, which is also on this list. On March 17, 2020, CEO Rick Leach sent a memo to employees stating that due to the impact of the 2019–20 coronavirus pandemic on travel demand, the airline would cease operations on April 1, 2020
  • The Italian airline Ernest Airlines collapsed on 5 April 2020.
  • Compass Airlines, a United States regional carrier that operated some flights for American Eagle and Delta Connection, permanently ceased operations.
  • BRA Braathens Regional Airlines.
  • CityJet
  • Virgin Australia reduced 8,000 out of 10,000 employees (redundancies and temporary layoff). The airline formally applied for voluntary administration on 21 April 2020, however as of that date, flights are still operating and talks about the future of the airline are continuing. On June 26, 2020 administrators Deloitte announced they had agreed to sell Virgin Australia to American Private equity firm Bain Capital. This has yet to be approved by creditors as bondholders, Singaporean hedge fund Broad Peak and Hong Kong investor Tor themselves want to put a bid in to buy the airline. 
  • Air Mauritius entered voluntary administration to safeguard the interests of the company and its stakeholders after coronavirus-related disruptions made it impossible for the airline to meet its financial obligations. The airline was seeking to change its business model to address preexisting financial problems when the pandemic had a major impact on its revenue. The airline plans to continue operating.
  • In April 2020, German Airways filed for insolvency with plans to restructure due to the cancellation of Eurowings' wetlease contract for their entire Bombardier DHC-8-400 fleet in the wake of the COVID-19 pandemic.
  • Comair
  • Avianca, the second largest airline in Latin America, filed for Chapter 11 bankruptcy in New York City and liquidated its subsidiary Avianca Peru on 11 May 2020.
  • Thai Airways announced plans to restructure the company under a bankruptcy court. Thai Prime Minister Prayut Chan-o-cha announced that the Thai Government, which owns a majority stake in the airline, would not allow the airline to declare bankruptcy formally.
  • On May 20, 2020, the Ecuadorian government decided to liquidate TAME and ceased all operations. The airline, which had been struggling for several years, claimed that its difficulties were compounded by the impact of the COVID-19 pandemic.
  • LATAM Airlines Group filed for Chapter 11 bankruptcy in the United States for the company and its subsidiaries in Chile, the US, Ecuador, Colombia and Peru on 26 May 2020.On June 17, 2020 LATAM Airlines Group announced it would cease operations of its subsidiary, LATAM Argentina, with all aircraft returned to lessors and all employees laid off immediately.
  • On 18 June 2020, Level Europe announced that it would cease business operations with immediate effect and enter insolvency.
  • On 23 June 2020 SunExpress announced SunExpress Deutschland would cease operations in 2020 and will be orderly liquidated. Its route network would be partially taken over by SunExpress and Eurowings.
  • One Airlines announced on June 24, 2020, that it has ceased operations due to the hard financial situation caused by the current COVID-19 crisis. The owner and Chairman, Claudio Fischer Llop, blamed the competition from SKY, JetSMART, and LATAM, which are offering charters at prices that ONE cannot compete with, and the lack of financial support from the Chilean government, making ONE’s operation non-viable during the present and near future.
  • NokScoot went out of business 26th June 2020 as it couldn't recover from coronavirus pandemic impact. The board of directors decided on Friday to liquidate the airline, which left 450 staff members unemployed. NokScoot return three aircraft from the five-jet fleet to the parent company in Singapore by the end of June.
  • On 27 June 2020, the Prime Minister of Antigua and Barbuda announced that LIAT would be liquidated following a series of unsuccessful months due to COVID-19. The airline will be formed into a new entity that will provide vital connections between the Caribbean islands.
  • The sale process of Italy's flag carrier Alitalia was accelerated, and the Italian government cut deadlines for interested investors to submit offers from 31 May to 18 March. Between the weeks of 2 and 9 March – when the Italian government announced a national lockdown – Alitalia's capacity in international flights fell by 22 percent.
  • South African Airways received several billion rand in government aid in early 2020, but the airline had already been under voluntary business rescue since 5 December 2019; stricken by preexisting debts and pandemic-related revenue losses, analysts commented that the airline had effectively "already collapsed" when the government rejected a request for another R10 billion in aid in mid-April. Business rescue practitioners gave the airline's unions a 24 April deadline to agree to a plan to wind down the company, stating that liquidation would commence if no agreement was reached.
  • On 21 July 2020 Jet Time announced it had filed for bankruptcy, after having discharged most of its employees in June due to Covid-19. However, the owner expects and is preparing for a reconstruction in the new company Jettime, to resume operations after the pandemic. The Jet Time CEO, a number of key employees, and five of Jet Time's Boeing 737 airplanes are being transferred to Jettime

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