Skyfall: Another budget airline goes down as sector struggles

phys.org | 2/5/2019 | Staff
LordLord (Posted by) Level 4
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Budget airline Germania filed for bankruptcy on Tuesday, becoming the latest low-cost carrier to go under after the highly competitive industry suffered from rising fuel prices last year.

Here is some background on the challenges plaguing the sector.

Airlines - Belgium - VLM - Airlines - Denmark

Almost 10 low-cost airlines collapsed in 2018, including Belgium's VLM Airlines, Denmark's Primera Air and Cyprus' Cobalt Air.

This year has not started much better with Germania, which transported more than four million passengers a year, not only filing for bankruptcy but cancelling all flights with immediate effect.

Airline - Mediterranean - North - African - Middle

The Berlin-based airline, which flew mainly Mediterranean, North African and Middle Eastern holiday routes for German sun-seekers on package trips, said it "ultimately failed to successfully complete our financing efforts to meet short-term liquidity needs".

Other ailing airlines have only narrowly escaped folding this year, such as the British Flybe, which a consortium led by Virgin Atlantic is bidding to buy for just one pence per share.

Budget - Airline - Ryanair—the - Industry - Leader—has

Even the Irish budget airline Ryanair—the industry leader—has felt the pressure, revealing on Monday it would restructure after a net loss of 20 million euros ($22 million) in the last three months of 2018, its first quarterly loss since 2014.

'Unrestrained competition'

Competition - Flights - Europe - Airlines - Drop

Competition is fierce for short-haul flights in Europe as airlines drop prices hoping to win over thrifty holiday seekers, pushing their profit margins lower.

The average cost of a Ryanair flight, for example, is now below 30 euros.

Olivier - Fainsilber - Aviation - Analyst - Consultancy

Olivier Fainsilber, aviation analyst at consultancy Oliver Wyman, said it was a time of "unrestrained competition" after...
(Excerpt) Read more at: phys.org
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