The economic structure of the airline industry may contribute to airline bankruptcies as … This was notable for the fact that Adria was the national flag carrier of Slovenia. If you’re stranded, the best you could hope for is repatriation organized by your country’s CAA. Other times, you may not be so lucky, as it happened when WOW Air collapsed and repatriation tickets were offered at a measly 25% off. However, 2019 doesn’t seem to be better. They may be set by us or by third party providers whose services we have added to our pages. On 8 October 2019, the airline announced it would be filing for bankruptcy. A lot of policies in the US don’t cover airline collapse, so you have to be really careful when choosing your policy. It filed for bankruptcy on 30 September. Increased competitiveness, cost pressures, Brexit uncertainty and high fuel prices are the most common causes of airline bankruptcy according IBA Consulting. Cargo airline; Airline bankruptcies in the United States; External links. It declared bankruptcy on 4 February 2019, and ceased operations on 5 February 2019. 0 0 2 minutes read. Wikimedia Commons has media related to Defunct airlines. Airline Bankruptcies. At the start of October, we saw the bankruptcy of Primera Air. Courtesy Norwegian Norwegian Air Shuttle is once again facing a … These cookies are used by advertising companies to serve ads that are relevant to your interests. On this year’s bankruptcy of Jet Airways, Professor Loizos Heracleous […] However, other airlines may not be so lucky. By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Service. So how does an airline go bust – and what can you do in those circumstances? Airline bankruptcies in 2019 Thomas Cook’s bankruptcy had the greatest impact on passengers. We have already seen as many airline bankruptcies as the entire 2018 – and the year isn’t over yet! This may not always be easy, as many airlines function until the moment they don’t. Insel Air served as the national airline of Curaçao, flying to five destinations across the Caribbean and South America. Considering travelling by plane soon? And when it fell, it made its passengers suffer probably the biggest fallout of all recent bankruptcies. Air Berlin, which operated flights to and from Berlin Tegel, went bankrupt in 2017, Lithuanian airline Small Planet filed for insolvency at the end of 2018, The airline ceased operations in October 2017, Antwerp-based VLM went bankrupt in September 2018, German airline Germania filed for insolvency in February 2019, Founded in 2005 ceased flying in October 2012, Cobalt, based in Larnaca, Cyprus, stopped flying in October 2018, An airline that had been in operation since 1921, went bust in August 2010. This was a small Iraqi airline based in Baghdad, with scheduled domestic services to Middle Eastern destinations, the most frequent being to Damascus in Syria. The airline owes Rs 8.74 crore to Shaman Wheels and Rs 53 lakh to Gaggar Enterprises. Let’s look at the more recent examples. The Argentinian subsidiary of the Colombian group also didn’t make it through the year. The most recent airline bankruptcies were German low-cost airline Germania and UK regional airline FlyBMI. This Armenian airline operated scheduled and charter flights from Shirak International Airport and Zvartnots International Airport, with a focus on transporting passengers from Georgia to Russia via Armenia following Russian President Vladimir Putin’s order to suspend direct flights between Russia and Georgia in July. Want to bookmark your favourite articles and stories to read or reference later? Major airline bankruptcies – and what happened Thomas Cook (UK) – 23rd September 2019 The UK’s oldest travel agent ceased all operations in early autumn, leaving an estimated 600,000 travelers stranded abroad, 150,000 of them from the UK. Other airlines that have folded in 2019 include France’s Aigle Azur and XL Airways, Germania, Flybmi and Adria of Slovenia, which filed for bankruptcy this … Germania, first crippled by rising fuel prices, high fleet maintenance costs and compensations they had to pay for the disruptions in the summer of 2018, failed to attract investor interest. These are the carriers that have ceased flying (so far): Little known outside Germany, Germania, officially known as ‘Germania Fluggesellschaft mbH’, was a well-established, privately owned German airline based in Berlin that flew to more than 40 destinations. Although the aviation industry is growing, there are always businesses that fall by the wayside. Other airlines that have folded in 2019 include France's Aigle Azur and XL Airways, Germania, Flybmi and Adria of Slovenia, which filed for bankruptcy this week. Grounded: It’s been a record-breaking year for airline insolvency, Find your bookmarks in your Independent Premium section, under my profile. The group ceased trading as of 23 September; tens of thousands of customers are still awaiting refunds. Atlasglobal (Turkey) This airline already made a temporary appearance in the 2019 Airline Bankruptcy list, only to resume flights just before the end of the year. Other airlines that have folded in 2019 include France’s Aigle Azur and XL Airways, Germania, Flybmi and Adria of Slovenia, which filed for bankruptcy this … Increased competitiveness, cost pressures, Brexit uncertainty and high fuel prices are the most common causes of airline bankruptcy according to IBA consulting company [1]. Want an ad-free experience?Subscribe to Independent Premium. It went into administration on 16 February. Asian Express Airline was a Tajikistani carrier based in Dushanbe, operating domestic and international flights (although, as of 2016, all international routes were to and from Russia. Gone under in 2019. California Pacific This small regional US airline barely got off the ground (excuse the pun). UK’s “Operation Matterhorn,” organized to bring back people stranded by Thomas Cook’s collapse, is the biggest peacetime repatriation effort. We have already seen as many airline bankruptcies as the entire 2018 – and the year isn’t over yet! Turn your delayed, cancelled or overbooked flight into a compensation up to €600! European (+10.2%) and North America (+9.7%), which As of November 2019, there were at least 18 airline bankruptcies … Unfortunately, airline bankruptcies and insolvencies are an event that there is to stay. Again, this isn’t guaranteed to work every time, but it’s something. Facebook Twitter Google+ LinkedIn Pinterest WhatsApp Share via Email Print . Sometimes, the planes are still in the air. Thomas Cook Group started out in 1841 with the aim of carrying temperance supporters by railway between Leicester, Nottingham, Derby and Birmingham. It officially failed on 29 March 2019. However, asking the airline for flight compensation isn’t the easiest of tasks on even the best of days (otherwise Skycop would have no raison d’etre) – and trying to claim flight compensation from a bankrupt airline or its administration is nearly impossible. Headquartered in Ljubljana, the now defunct airline carried 1.2 million passengers in 2018 – the same number as Ryanair flies in three days – to 23 destinations in Europe. The airline faced stiff competition in Northern Europe and had to compete with settled companies like Norwegian for transatlantic flights. Airlines canceled some outstanding aircraft orders and the first A-380 was scrapped in 2019. Small US domestic regional airline Via had six Embraer jets and, by the tail-end of its tenure, was only operating flights between Orlando-Sanford International Airport and Jackson, Mississippi. It also doesn’t help that airlines don’t disclose their flight compensation debts in statements to their shareholders, making themselves look more profitable. This small regional US airline barely got off the ground (excuse the pun). It became unable to pay out salaries in January before closing doors a month later. It went under on 14 November. These cookies are necessary to enable the basic features of this site to function. To improve your experience, we use cookies to remember log-in details and provide secure log-in, collect statistics to optimize site functionality, and deliver content tailored to your interests. This means not only taking out travel insurance but also checking out how the airline is doing. It shut up shop for good on 16 April. With up to €600 in compensation on the line, there’s no reason not to do it. Around a half-dozen European airlines have closed in 2019, and several more ceased operations in 2017 and 2018. WOW air, founded in 2011, spent the last six months before its closure looking for a buyer – but failed to find one. Many airlines had gone bust in 2018. UPDATED (31/12/19): Airline bankruptcies 2019 list (finally!) Air Philip was a South Korean airline operating domestic and international routes. • Equity market performance varied among the regions. Taron Avia had already suspended operations once in 2018, and in November 2019 was stripped of its operational licence after failing regulatory inspections. Traveling this spring could pay off more: here’s why, Redrawing an epidemiological map: new requirements for entering Lithuania. “We have previously stated that Regulation (EC) 261/2004 is not enough for dealing with regular flight disruptions. Now you can add airline bankruptcies to its list of blindspots.”. However, regulatory bodies aren’t even playing catch up,” said Lukas Raščiauskas, CEO of Skycop. And when Aigle Azur went bust, at least one woman was stuck in Sao Paulo, unable to afford the ticket to Paris that cost between €750 and €1750. The company is currently undergoing insolvency proceedings. Make sure to find out if your bank hasn’t dropped it and maybe seek a new card. Thomas Cook’s demise was one of 2019’s most shocking failures, but plenty of smaller brands have also gone under, including Flybmi and WOW Air. The last measure you can take is being careful while ordering a flight. A more familiar name than some of the other entries, WOW was an Icelandic low-cost carrier founded in 2011 that flew to destinations in Europe, North America and Asia. Currently, WOW air is being resurrected as WOW 2, with flights between Keflavik and Washington Dulles to start mid-October. These cookies enable the website to provide enhanced functionality and personalisation. If there was ever a place to look for a global slowdown, it is in the airline sector. An Irish family on a delayed flight from Detroit to Dublin even had pizza delivered (as airlines are required to feed passengers on extended delays) and promised a flight in 15 minutes immediately before the airline ceased operating. There’s also Regulation (EC) 261/2004 and its protections of air passenger rights. However, if your flight was disrupted by something less earth-shattering, we can help! As the cash crisis worsened and lenders refused any lifeline to the airline under promoter chairman Goyal, who was forced to give up control on March 25, when lenders had in … The Dutch Caribbean airline ceased all operations on 16 February 2019. We talked to three former employees of Trump Shuttle. It ceased operating on 7 June. U.S. Claim flight compensation for delayed, cancelled or overbooked flights via Skycop! All flights were cancelled from 7 September and the company ceased all business activities on 27 September. Though times for passengers, airlines and its employees as already in September alone the wings of four airlines have been clipped. At its peak, Colombian regional airline Aerolínea de Antioquia operated scheduled domestic services from Medellín to more than 20 destinations. Airline Bankruptcies Many lay observers broadly equate bankruptcy with going out of business. All flights were grounded as of August this year, while the company forfeited its entire fleet in October – effectively ceasing all operations. A small French carrier operating scheduled flights to mainly long-haul destinations in Africa, the Middle East, the United States and the Caribbean, XL was wound up on 23 September. Click Agree and Proceed to accept cookies and go directly to the site or click on View Cookie Settings to see detailed descriptions of the types of cookies and choose whether to accept certain cookies while on the site. Based in Lima, this small airline operating mainly domestic flights wrapped up on 2 October. December 11, 2019. flight compensation for delayed, cancelled or overbooked flights, Longing for a winter trip? Meanwhile, as airlines are competing with slashing prices, it’s not easy to add more revenue (even if they try doing it via ancillary revenues). Fierce competition and higher fuel prices are weeding out the weak performers. Germania, a Berlin-based airline once known as SAT (Special Air Transport), announced on 8 January 2019 that it may have to liquidate “short-term” unless a buyer is found due to having accumulated heavy losses for every operating year starting in 2013 and being short on liquidity. However, 2019 doesn’t seem to be better. But, no surprises, this February news are that it is ceasing operations for the second (and possibly definitive) time. This sizable Indian airline was struggling for a few years before being grounded on 17 April this year – a move which it said was “temporary”. It declared bankruptcy on 4 February 2019, and ceased operations on 5 February 2019. AIRLINE BANKRUPTCIES IN 2019. Another benefit is that credit card holders can request charge-back as the bankrupt airline has clearly failed to prove the agreed-upon services. Fuel prices have been increasing over the years – and the costs grow even higher when you factor in the attack on Saudi oil fields. It was founded in 2016, but had ceased operation as of 13 March 2019. As the parent travel company Thomas Cook Group went under, so did the airline. In 2019 alone, 23 carriers have stopped flying, making it a record breaking year for airline bankruptcies. Start your Independent Premium subscription today. Following this, just weeks later saw the demise of Cobalt, with Flybe almost following. Brazilian carrier Avianca Brasil, a subsidiary of Colombian airline group Avianca, never officially announced its bankruptcy, but stopped trading on 24 June. It closed doors abruptly, with German airlines offering discount flights for stranded passengers. Flybmi, a British regional airline, and Germania, a budget airline based in Berlin, filed for bankruptcy in February. Last year was very rough for the aviation industry. Transporte Aéreo Militar (TAM) was an airline based in La Paz, Bolivia, owned by the Bolivian Air Force and set up to serve rural communities. If the airline goes belly up, most airfares to Europe would get more expensive. Last year was very rough for the aviation industry. It actually turned out well for some passengers, as Britons holidaying in Spain and Baleares got the rare chance to fly back home on an Airbus A380 jumbo. So that’s the terrible world of airline bankruptcies. Norwegian has currently won some reprieve by postponing debt repayment for two years (it owes $380 million). A Thai international airline focusing on flights from Thailand to China, New Gen flew to 30 Chinese destinations on its 11-strong fleet of Boeing 737s. Air Link: Based in Dubbo, Australia, the airline was 47 years old when it closed in September. Since your flight was km and you had a flight with 0 passengers, compensation amount depends on various criteria you may be entitled to a compensation of. “With the accelerating pace of airline bankruptcy, something has to be done to protect the air passengers. By Jessica Pucket t. September 4, 2019. A strong dollar doesn’t help, as it’s the currency used to pay for both fuel and plain leases. Germania was launched in 1978 and stopped its operations on February 5 2019. Thomas Cook Airlines came to be in 2001. Thomas Cook Goes Bankrupt, Stranding 600K, Adria Airways Will Operate At Least For Another Week, WOW Air Financial Crisis Causing More Flight Disruptions, 11 most outrageous things that airlines don’t want you to know, 5 Longest Operating Airlines in the World. Flight compensation company GIVT has compiled a list of all the airlines that have been grounded. 2019 saw 31 airlines calling it quits. It ceased operation on 31 March 2019. Like many other collapsing companies, it tried operating flights till the last possible second. On 1 November 2018 it launched its first flight – but it barely lasted two months, officially ceasing operations on 17 January 2019. This was a horrible year for airlines to stay in business. It was permanently grounded in January 2019. These are some of the biggest airline bankruptcies in 2019: 5) Adria Airways – bankrupt on September 30, 2019 The Slovenian airline abruptly stopped operations on September 30, 2019, after temporarily suspending flights twice the week before. When Thomas Cook went bankrupt, some passengers accused airlines like Jet2 of price gouging. It stranded 600,000 travellers worldwide, with British CAA organizing repatriation flights for UK citizens as well as working to reassure hotels that it will reimburse them the money the tour operator owed them. This page was last edited on 14 December 2019, at 14:13 (UTC). So, what happens if you find yourself with tickets to a flight operated by a bankrupt airline? Please choose whether this site may use Functional and/or Advertising cookies, as described below. Now, WOW Air joins the list as a … In September 2019, the airline suspended all operations. In a READ MORE… Credit card holders may be privileged in this case, as some of them have premium travel protection. Airline bankruptcies surge, leaving rivals vying for planes. Now, 2020 is off to a rocky start. For those travellers that don’t have such protection offered at the state level (such as passengers from the US), the best hope is travel insurance, which should be ensured before you fly. 2019 has been a troubling year for aviation. Air Costa Rica: A San Jose airline, closed in July at just two years old. Slovenian airline Adria Airways filed for bankruptcy and cancelled all flights on Sept. 30, 2019, after grounding most of its flights in the previous week. Aigle Azur was a French airline based out of Paris Orly Airport and flying to 21 destinations across Europe, Africa and the Middle East. Astra Airlines was a Greek regional airline headquartered in Thessaloniki with a fleet of just four jets. Read our full mailing list consent terms here. closed One month and a half into 2019 and we have the first, but surely not the last, airline demise of the year: Germania (of Germany, as it is obvious from the name) ceased operations on Feb 5th. Flybmi, based at East Midlands airport, flew from regional UK airports (Aberdeen, Bristol, East Midlands and Newcastle) to Continental and Scandinavian destinations including Brussels, Dusseldorf, Frankfurt, Hamburg, Munich, Oslo, Paris and Stavanger. By. Review our policy. This was the most high-profile failure of 2019 – no one thought the UK’s third biggest tour operator could go under, but go under it did (including its profitable airline). It stopped trading on 28 March this year. Experts say, it is safer than you think, Allow us to redirect you to certain parts of our site, Allow us to provide live customer service, Allows us to show embedded content for you, Allows us to recognize your device, browser, Allows us to collect information about how you use our site. However, the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are complex, affording companies different means of addressing their financial plights. How does an airline go bankrupt? In 1988, Donald Trump bought an airline, but within 18 months, it lost over $125 million. Travel data company, Cirium, found that 43 commercial airlines have failed since January this year, compared to 46 in the whole of 2019 and 56 in all of 2018. This one-aircraft operation flew from (you guessed it) Jamaica to Guyana, Georgetown; New York in the US; and Toronto, Canada. Which Airline are not flying anymore? The flight cannot be claimed because arrival and/or departure airports are not within countries where EC 261/2004 or other regulations are applied. Bin Air: Based in Cologne, Germany, Bin Air closed down in October after 12 years of service. When it comes to getting your money back, passengers from the UK are probably the luckiest, as ATOL and associated Air Travel Trust Fund exist to cover reimbursement and repatriation for travellers affected by the bankruptcy of an ATOL member. Cookies are important to the proper functioning of a site. It was Mexico's largest airline, Icelandic Wow Air ceased operation in March 2019, Primera, known for its cheap transatlantic fares, went bust in October 2018, A privately-owened airline founded in Russia, 1990 lasted until October 2015, After 66 years, Hungary's national airline went stopped flying in 2012, Flybmi was a former subsidiary of British Midland International, which was once based at Heathrow Airport, Turbulence ahead: Jet Airways has cancelled all international flights, Inside 'Operation Matterhorn' the Thomas Cook rescue mission to repatriate stuck travellers, {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}, The 23 airlines that have stopped flying in 2019, currently undergoing insolvency proceedings, thousands of customers are still awaiting refunds.

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