Low-Cost Airline Primera Air Collapses After Failing to Secure Funding

Primera Air, a low-cost carrier, has ceased operations and announced it will close as of October 2 after it failed to secure financing, the Financial Times reported. In an announcement on its website, the Latvian-based airline said: “On behalf of Primera Air team, we would like to thank you for your loyalty. On this sad day we are saying goodbye to all of you.” The airline flew nine Boeing aircraft from bases in countries including Iceland, Denmark, Sweden and Finland. It offered transatlantic flights from Birmingham and Stansted airports in the UK. A statement from the board said the airline had “no other choice than filing for bankruptcy” when it could not agree bridge financing with its bank. It said “several unforeseen events” had cost it significant amounts of money, including €10m to repair a plane suffering from corrosion and €20m to lease aeroplanes with crew after the late delivery of new aircraft. Read more. (Subscription required.)