Germania Collapse Hits Passengers, Tour Operators And Airports

Despite recent claims that it had filled a €15 million liquidity gap, the privately-owned German airline was forced to file for insolvency late on Monday and stopped flights early yesterday. The move leaves some 1,700 employees, who reportedly have not been paid for January, facing the loss of their jobs. Germania, with a fleet of 37 planes, flew more than four million passengers a year from regional German airports to 60 destinations in Europe, North Africa and the Middle East. Owner and CEO Karsten Balke said: “Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion. We very much regret that consequently our only option was to file for insolvency.” Germania repeated its earlier explanation that its short-term liquidity need emerged mainly to the financial impact of unforeseeable events such as massive increases in fuel prices last summer and the simultaneous weakening of the euro against the US dollar, considerable delays in phasing aircraft into the fleet and an unusually high number of maintenance incidents affecting its aircraft. Read more

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