Originally Posted by
CaptainProp
Management released update last night that short term financing has been secured and things seem to be ok for for now. I say “for now” as the question remains, why are they in this financial situation after an over all busy summer (for all airlines)? Business model not working? What happens when / if oil goes up towards $85-90 and stays there?
CP
Once again its all about fuel costs and efficiencies of the fleet/operations both in terms of fuel burn and technical support - The 737-700's it mentions are costly to maintain plus they had a ground collision with an El Al 767 in TLV and the tail was badly damaged on the Germania 737 - who's fault I do not know who picked up the bill.
Seems Germania pulled out of the UK bases in most despite being popular with pax and tour operators alike. Seems alot of UK work has gone to Polish Enter Air.
As for business model again a foremost charter holiday airline fights to now compete with Lo-co operators - they have also split the company into Swiss and Bulgaria operations with separate company names Germania Flug AG and Bulgarian Eagle,