Slovakia's low-cost air carrier, SkyEurope Airlines, has filed for bankruptcy protection from its creditors as the company stated in a Monday morning, June 22, press release that the Bratislava I District Court has granted its petition, the SITA newswire reported.
SkyEurope Airlines is a subsidiary of SkyEurope Holding AG. The bankruptcy approval creates space for the company's management to carry out restructuring of its business. SkyEurope decided to take the step on a voluntary basis as it will give it time for full realization of the potential of its bases and route network, for restructuring its debt and to make itself more attractive for possible new investment, SITA wrote.
During the restructuring process, existing contracts with suppliers must be observed by both parties. Suppliers will be paid for services provided during the restructuring process but the company will be protected against activities aimed at collecting debts from the past. The company says it wants to use bankruptcy protection to secure stronger and financially more stable business.
SkyEurope said that bankruptcy protection was successfully applied several times by airlines, mainly in the United States. The company also said that being in bankruptcy should not influence the activities of the company and that it should continue operating its regular and charter flights according to its flight schedule. The measure will also help the company protect and sustain jobs, SkyEurope’s news release stated.
The company has been facing pressure from creditors over the last several weeks. A Czech company – Beyond Interactive – based in Prague published an ad in the press asking creditors of the low-cost air carrier to proceed jointly in collecting claims towards the airline. According to unofficial information, this pressure allegedly was used to push the company in filing for bankruptcy.
SkyEurope Airlines, based in Bratislava, operates flights from its three bases in Bratislava, Prague and Vienna. Its fleet has decreased from 15 planes to its current eight Boeing 737 aircraft which should increase to ten planes this summer. The company was founded in September 2001. Its share capital is €661,223.
22. Jun 2009 at 10:00 | Compiled by Spectator staff