German leisure airline Germania has announced that it filed for insolvency on February 4, cancelling all flights that night. The carrier’s sister maintenance company, Germania Technik Brandenburg, has also been affected.
Germania has said that its short-term liquidity need “emerged mainly due to unforeseeable events such as massive increases in fuel prices last summer and the simultaneous weakening of the euro against the US dollar.” It further explained that: “Considerable delays in phasing aircraft into the fleet and an unusually high number of maintenance events that the airline’s aircraft required were major burdens for the company.”
Karsten Balke, the airline’s chief executive, 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. It is of course the impact that this step will have on our employees that we regret the most. All of them as a team always did their best to secure reliable and stable flight operations – even in the stressful weeks behind us. I would like to thank all of them from the bottom of my heart. I apologise to our passengers who now cannot take their Germania flight as planned.”
The company has stated that its Swiss and Bulgarian arms are not affected by the insolvency. Germania Flug, headquartered at Zürich Airport, presently operates two Airbus A319s and an A321 while Sofia-based Bulgarian Eagle flies a pair of A319s.