SkyEurope

[guiser]

My wife is Slovak (and we often fly Skyeurope from LTN to Kosice/Poprad). One of her friends is a SE cabin crew and she told us last week that staff have only been paid 1/8 of their salary for the last 3 months. They are closing the Kosice office, relocating staff to Bratislava. In the next month or so the flights to Poprad from LTN are likely to be be scrapped. They are however expecting their new (!?) planes in by the end of March, apparently from an ex Soviet country and a big improvement on what they have been using lately.

She thinks the company will survive until at least the summer, but after that there is a huge question mark.

[eu01]

After leasing companies withdrew seven new Boeings from loss-making low-cost airline SkyEurope in January 2009, complaints by passengers have risen, the Slovak financial daily reported on March 18.

Several customers have expressed surprise at the older planes and staff from Bulgaria or Croatia, the paper reported.

SkyEurope sold fewer than 161,000 tickets in February, a fall of more than a third compared to last February.

Meanwhile, Sapo International has offered to buy all the shares of SkyEurope possessed by York Global Finance II. In order to make it happen they have to get the approval of the Austrian financial supervisor (as the amount of shares owned by them would exceed 29.9 percent of total).

[legendz]

I'm really anxious since I have a really important travell with SE for next October.

Lisbon --> Prague
Vienna --> Lisbon

I'm afraid of booking with hotels and loose the entire investment, the airliner's fairs and hotel rates... I'm freaking with this. I would ask for a refund and book with another airliner if I could, now it's too late

[legendz]

I have 2 really important flights booked with them for next October and I'm really anxious about them due to the current financial status of SE. I haven't booked with hotels to see if they sort it out but this doesn't seem to come to an end.

Lisbon --> Prague
Vienna -> Lisbon

I'm afraid that I'll loose the airliners fairs and also the hotel's rates. What to do?...

[davidjohnson6]

legendz - I hate to say this as I'd like to see SkyEurope pull through and survive or merge with another airline (it's good for competition and helps the consumer), but I would have serious concerns 7 months in advance as to whether your tickets for these 2 flights in October would be honoured.

If a vaccuum appears in the market, it is often filled pretty quickly. When Sterling who had a large base in Copenhagen ceased operations, other airlines moved in to replace them in a matter of weeks - and you will now see Cimber, Transavia and Norwegian offering many routes from Denmark. Should SkyEurope cease operations or close routes, one might see the likes of Wizzair and niki increasing the number of routes they fly from Prague and Vienna. Alternatively, Easyjet may open a Lisbon-Prague route.

It does however all depend on how important that trip is to you, and how much it would cost to buy a ticket with the likes of other airlines. You might wish to look into purchasing a ticket which is substantially (but not completely) refundable from a major airline like Lufthansa as an insurance policy - if SkyEurope are still around, you just claim the refund from Lufty, but if not you are guaranteed to be able to make your trip

[legendz]

That's a really good advice and I'll look into it, gonna check TAP's policy regarding this for instance. I did had the hope that they'd survive with the Summer coming and all but even them being one of the best flying to that part of Europe I'm starting to loose hope on them.

Regards.

[PeterPaul]

Hello captplaystation,

Are you one of the staff Ryanair admitted were paid to post in Twitter and other blogs against competitors?


legendz,
Do you know how many MILLION people profited from flying with SkyEurope, since some of the guys posting in this forum, predicted that it will soon stop operating? If you bought a SkyEurope ticket, you will certainly be one of the next millions. If not, you will be one of the few who believed the mudding, and lost money and service.


Hey anti-SkyEuropeans, what's wrong with the leased planes? Are they worse than the ones used by your favorite airline? I have flown with them several times, and found them very-very good. People are content with them, I assure you. I can also testify honestly to that, I have never seen so full planes lately.

[seventhreedriver]

Cool... Feels like a PR message...

[Bubba_]

PeterPaul, without any offense could you tell me why do you see NE so bright and shiny? Don't you remember what and how happend with HSK? All the top managemant including J.B telling lies into the eyes of the whole staff.. and at the end those who didn't accept the base change and moving away from home were kept in contract with low salaries, so were not able to start a full time job at another place. Being forced to terminate their contracts and miss the compensation. And these are just few from many..
Seems less and less millions share your oppinion regarding the planes and positive expirience, just have a look on skytrax. And not to mension those guys who "voluntarily" offered their huge part of the salaries. For how long was it, two months? and still...
I admit for a long time I have been expecting Sky to go down, but those above are facts. Nothing personal, once again no offense, I am just curious what do you see what we don't.

[Nightfire]

PeterPaul, without any offense could you tell me why do you see NE so bright and shiny? Don't you remember what and how happend with HSK? All the top managemant including J.B telling lies into the eyes of the whole staff.. and at the end those who didn't accept the base change and moving away from home were kept in contract with low salaries, so were not able to start a full time job at another place. Being forced to terminate their contracts and miss the compensation. And these are just few from many..
Seems less and less millions share your oppinion regarding the planes and positive expirience, just have a look on skytrax. And not to mension those guys who "voluntarily" offered their huge part of the salaries. For how long was it, two months? and still...
I admit for a long time I have been expecting Sky to go down, but those above are facts. Nothing personal, once again no offense, I am just curious what do you see what we don't.

Being an ex-HSK guy myself, I also expected SkyEurope to go down long ago. fortunately for the people working there, it is still going on, and I certainly don't wish anything bad to anybody.
I had a great time in Budapest, and it was certainly the most pleasant company I had ever worked for; but that is all history.

The truth with Skyeurope is, they just never improved themselves. They never matured out of the "new startup"-stage, where you'd patiently excuse them all sorts of mistakes. Other airlines either devellop themselves, or go under after a certain period of time. But SkyEurope was bailed out many times by investors, and perhaps will be once more even this time.

But it has no future.

The management wasted too many opportunities in the past, had no long-term plan (they changed their strategy every year), and kept on making stupid and obvious mistakes. Everyone with a sense of reality could see that - just not the management, which instead kept on producing powerpoint-presentations about SkyEuropes brilliance.

I hate to see it dying, because it was a cool place. But every party has to end at some time. And SkyEurope is nothing more than a party.

[seventhreedriver]

Bubba, you SkyEurope hating b.tch... :-) You work for Ryanair, or what?... :-)

[johnnychips]

Offensive?

Any need for above post Mr Moderator?

[Bubba_]

No, but I would, if I could participate in the new calendar by making the pictures

[johnnychips]

I work teaching English to students from abroad and quite often they don't realise the strength of the word 'hate' when perhaps they mean 'dislike strongly'.

But calling anyone a 'bitch' is both sexist and offensive.

Let's stick to the subject.

[barclay]

Skyeurope: York looks to sell out; Greek and Chinese bidders circle, source says
mergermarket

Story York Capital is looking to sell both the debt and its 29% equity, it has in listed Skyeurope, a source
familiar with the matter told this news service. The value of the shares has been “virtually wiped out,” the source
said. The loans from York to the Bratislava headquartered low cost carrier comprise one bond of EUR 13m and
two loans of 15m and 11.5m a piece, he noted. It is understood that York is willing to take a loss on its investment.

Also, the value of the loans, whilst worth considerably more than the equity, are only worth 45% of their face value
if sold on the market, he said.

“We have been trying to get an investor to come in and buy out York's interest as well as inject some fresh capital,” the source said.
The buyer would not have to make a public offer but could gain a “restructuring privilege” as an exemption to a public offer, he said.

A source close to York said that there are a number of challenging issues issues at Sky - including the attitudes of both
minority investors and management. "The next few weeks are critical; as were the last few," the source added.

Rothschild has been engaged to seek an investor for Sky, the source noted. Some bidders were earlier lined up in a consortium
but the two parties had a major difference of opinion and the consortium split up. “Neither party was strong enough to bid alone
and inject new equity,” he said.

“Currently Sky is engaged in non-exclusive talks with a Greek shipping player as well as a group from China, he said, declining to
name them and adding that there is nothing firm yet and that it may not necessarily pan out with either. The source said that Sky
would welcome hearing from other potential investors who could buy out York as well as inject new capital. The routes out of Sky’s
additional bases in Prague and Vienna are profitable, he said, and the Athens route has taken off and has a lot of growth potential, he said.

The source thought that the monthly renewal period of the loans does not help to inject stability into the market view of the company
and that a longer period each time would cause less anxiety for investors. He said that York automatically renews them every month,
so a longer period would have been better.

A second source close to the situation confirmed that SkyEurope was continuing talks with two serious parties but said that at
this stage it was difficult to predict when something could be agreed. "I think it is a matter more of when and not if," he said.

This source said the interest in SkyEurope was from financial investors. It would be difficult to attract another airline to invest into
SkyEurope in the current difficult climate in the sector. There were no meaningful talks taking place with any other airline, he said.
The current difficult times did not make it easy trying to attract an investor, he said.

However, the source said SkyEurope remained an attractive investment and pointed out that it had recently secured two new planes
and two more were being added from April, while a further three were expected to be added from May.

SkyEurope Holding on 16 March announced the further extension of York Global Finance II S.a.r.l. loans had been extended for the
repayment of its EUR 15m loan granted in December 2007 and its EUR 10m loan granted in September 2008 to SkyEurope Airlines
to 15 April 2009. Both loans were due for repayment on 15 March 2009 in accordance with the loan agreements as amended.

One sector banker pointed out that it was a difficult time for any airline, even the most robust ones, to attract new investors given the
difficult conditions across the sector.

Source mergermarket

[barclay]

Skyeurope: York looks to sell out; Greek and Chinese bidders circle, source says
mergermarket

Story York Capital is looking to sell both the debt and its 29% equity, it has in listed Skyeurope, a source
familiar with the matter told this news service. The value of the shares has been “virtually wiped out,” the source
said. The loans from York to the Bratislava headquartered low cost carrier comprise one bond of EUR 13m and
two loans of 15m and 11.5m a piece, he noted. It is understood that York is willing to take a loss on its investment.

Also, the value of the loans, whilst worth considerably more than the equity, are only worth 45% of their face value
if sold on the market, he said.

“We have been trying to get an investor to come in and buy out York's interest as well as inject some fresh capital,” the source said.
The buyer would not have to make a public offer but could gain a “restructuring privilege” as an exemption to a public offer, he said.

A source close to York said that there are a number of challenging issues issues at Sky - including the attitudes of both
minority investors and management. "The next few weeks are critical; as were the last few," the source added.

Rothschild has been engaged to seek an investor for Sky, the source noted. Some bidders were earlier lined up in a consortium
but the two parties had a major difference of opinion and the consortium split up. “Neither party was strong enough to bid alone
and inject new equity,” he said.

“Currently Sky is engaged in non-exclusive talks with a Greek shipping player as well as a group from China, he said, declining to
name them and adding that there is nothing firm yet and that it may not necessarily pan out with either. The source said that Sky
would welcome hearing from other potential investors who could buy out York as well as inject new capital. The routes out of Sky’s
additional bases in Prague and Vienna are profitable, he said, and the Athens route has taken off and has a lot of growth potential, he said.

The source thought that the monthly renewal period of the loans does not help to inject stability into the market view of the company
and that a longer period each time would cause less anxiety for investors. He said that York automatically renews them every month,
so a longer period would have been better.

A second source close to the situation confirmed that SkyEurope was continuing talks with two serious parties but said that at
this stage it was difficult to predict when something could be agreed. "I think it is a matter more of when and not if," he said.

This source said the interest in SkyEurope was from financial investors. It would be difficult to attract another airline to invest into
SkyEurope in the current difficult climate in the sector. There were no meaningful talks taking place with any other airline, he said.
The current difficult times did not make it easy trying to attract an investor, he said.

However, the source said SkyEurope remained an attractive investment and pointed out that it had recently secured two new planes
and two more were being added from April, while a further three were expected to be added from May.

SkyEurope Holding on 16 March announced the further extension of York Global Finance II S.a.r.l. loans had been extended for the
repayment of its EUR 15m loan granted in December 2007 and its EUR 10m loan granted in September 2008 to SkyEurope Airlines
to 15 April 2009. Both loans were due for repayment on 15 March 2009 in accordance with the loan agreements as amended.

One sector banker pointed out that it was a difficult time for any airline, even the most robust ones, to attract new investors given the
difficult conditions across the sector.

Source mergermarket

[compton3bravo]

March Passenger Figures

The airline carried a total of 187,655 passengers in March 2009 nearly 40 per cent down on 2008 but the load factor was up 2.7 per cent on March 2008 to 76.3 per cent. According to their press release this was achieved by reducing capacity (obviously) on some routes and concentrating on their core routes which they seem to have done with some success. Also it states that passengers paid more for their seats. A new Chief Commercial Director has also been appointed, the gentleman coming from Malev.

[Nightfire]

What is "fresh capital"? Is there also stale capital?

[ericlday]

'Fresh capital' is 'stale capital' thats been laundered.

[Bubba_]

I was wondering whether the load factor datas were calculated with an average figure on the basis of the 73W or they took the actual figures for the ATR, 757, MD and the rest of the birds which were doing the flights for them.