The low-cost start-up airline, which declared insolvency in September, stopped operations on October 31 after its last remaining contracts with tour operators came to an end and without a new investor in sight. Some 400 employees have lost their job.

Managing directors Andreas Wobig and Oliver Pawel had held talks with Dutch-based SMS Aviation, the former investors in Belgian carrier VLM, but failed to reach an agreement.

Small Planet flew this summer with six A320s under contracts with various tour operators, including TUI, Thomas Cook, DER Touristik and FTI. These ran until the end of the school autumn holidays in October. But the airline had no contracts for the winter 2018/19 season after declaring insolvency and as tour operators switched capacity to other airlines.

The airline, 80% owned by Lithuania-based Small Planet Airlines, filed for insolvency in September following several months of troubled operations, including numerous well-publicised lengthy flight delays and cancellations this summer. Wobig and Pawel blamed the insolvency on the financial impact of these problems, which obliged the airline to pay out large sums to passengers in compensation for flight delays and cancellations, while also organising replacement aircraft at additional cost.

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

© 2019 Time Business Magazine

Log in with your credentials

Forgot your details?