Slovak-Based Airline SkyEurope Files for Bankruptcy

Slovakia-based low-cost airline SkyEurope Holding AG, which was struggling to restructure its debts, has filed for bankruptcy, according to an announcement on the Vienna bourse Web site on Tuesday, Reuters reported. The airline, which had started its operations in 2001 and flew its first passenger in February 2002, obtained a three-month creditor protection in Slovakia in June and was since trying to restructure and pay its outstanding debt. Earlier on Monday the company cancelled all flights from Slovakia until midnight on Monday, facing a suspension in flights from the Czech capital of Prague starting on Tuesday due to outstanding bills. The economic slowdown has hit the airline hard and its financial problems have added to the woes as it lost even more passengers because of concerns it may go insolvent. In July, passenger traffic declined by 37 percent year-on-year. Read more.