SkyEurope

[cesare.caldi]

SkyEurope introduces pre-assigned seating. Now everyone can choose his preferred seat when booking a flight.

10. 08. 2006

SkyEurope, the leading low-cost, low-fare airline in Central and Eastern Europe, is introducing a new service allowing passengers to pre-select their preferred seat while booking their flights at skyeurope.com.
Some low fare airlines rely on free seating, meaning that passengers have to fight for their seats, as no seats get assigned to individual passengers. With SkyEurope there is no need to fight. Every pasenger will get when checking in a boarding pass with a dedicated seat assignment – on a first come first serve basis.
Many passengers would like to get a window seat, or want to sit in exit rows where maximum leg room is provided, or do want to take the front row in the aircraft allowing them to deboard first when the plane arrives at the destination.
From today onwards passengers are able to book at the moment of reserving their flights their preferred seat. During the flight booking process customers can select directly in the displayed aircraft seating plan the seat they want to prebook.
Price for the new service will be 5 € one way per pre-booked seat and will be charged if selected together with the flight.
This service is available both for on-line bookers at skyeurope.com as well as customers calling SkyEurope’s central reservation centre.
"We are happy to introduce again a new innovative service that will provide our passengers with another great reason to fly with skyeurope.com. Now we enable our passengers to individually select their prefered seat in the plane, if they wish to do so. We focus on customer satisfaction and aim to deliver a product that contributes to an enjoyable travel experience“, said Ralph Preclik, Chief Product Officer of SkyEurope Airlines.
edited for advertising

[Charlie Roy]

They're following the example of Virgin Express then, who tuned into to all this seating preference malarky ages ago ;)

[Aussie]

Sounds like jetstar in Aus!

Should be good.

Aussie

[Charlie Roy]

2 aircraft and 16 destinations for starters. Bratislava base and Vienna base will operate side by side. Sky Europe aiming for a greater market share in the region as a whole.

Amsterdam 1234567
Barcelona -2---67
Brussels 1234567
Paris / Orly 1234567
Nice 1-3-5--
Venice/Treviso 1-3-5--
Florence -2-4-6-
Rimini ---4--7
Bucharest Banesa 1234567
Sofia 123456-
Athen 3xweekly
Thessaloniki 2xweekly
Larnaca 2xweekly
Zadar -2---6-
Dubrovnik --3--6-
Split -2---6-

[en2r]

Any hope of Vienna-Cork?

[Charlie Roy]

Slovak airlines went bust this week :sad: (Article (http://www.aero-news.net/index.cfm?ContentBlockID=9540b1a5-84b5-4bcd-86d1-4bb9c93229d6&))
No doubt Sky Europe are rubbing their hands with glee :E

Knowing that Ryanair said that they were considering a Bratislava base (Article (http://wiadomosci.onet.pl/1464354,10,1,0,120,686,item.html)), but not in 2007, I wonder will they now move fast and bring forward their plans for Bratislava?

Also, there has been no more news about Wizz's plans for Bratislava (Article (http://hnonline.sk/1-10138500-18904830-k0S000_detail-34)), possibly we'll hear more soon?

[johnnychips]

Just to note that the first and third linked articles in CharlieRoy's post are available and very interesting, but the second (which should be about Ryanair possibly developing a base in Bratislava) redirects you to a site in Polish which doesn't seem relevant.

[Charlie Roy]

Indeed it seems that that article is no longer on line.

Here's a summary:

Ryanair plan to target Wizz Air this year and become bigger than them in Poland
Ryanair plan to double their number of Polish passengers in 2007 compared to 2006
Ryanair have no significant plans for Warsaw in 2007, and will instead wait until a new low cost airport is built
Ryanair are in negotiations with Katowice airport
An Eastern European base is not a priority for Ryanair in 2007, but under consideration are Riga, Bratislava, Poland.

[Buster the Bear]

SkyEurope, the first budget airline to move into Poland, is considering closing down its operations centre in Poland. Jason Bitter, the new CEO, plans to withdraw from Eastern Europe and move the Budapest and Cracow hubs to Western Europe.

[OltonPete]

Buster & all

An article in atwonline mentions 2 more 73G's for Vienna by 28/10/07
with 12 new destinations plus increases to Amsterdam & Sofia.

Also the first (or so they claim) inter Austrian lo-cost route - Vienna to
Innsbruck.

I dare say that MAN and BHX will be hoping for Vienna to make up for
the loss of the BA/BACON service.

It is mentioned that Bratislava will remain their base.

Pete

[TOM1977]

Can you provide any more news on the rumour SkyEurope are going to operate four new services from LTN this winter?

[LGS6753]

Their website is showing UK flights moving from Stansted to Luton from end-October 2007. They currently service only Bratislava and Poprad from STN, but will be adding Kosice and Prague from November.

25 rotations per week, in excess of 250,000 passengers a year - assuming a reasonable degree of success.

[Charlie Roy]

Can anyone read Polish??

http://www.rzeczpospolita.pl/gazeta/...omia_a_21.html (http://www.rzeczpospolita.pl/gazeta/wydanie_070829/ekonomia/ekonomia_a_21.html)

Słowacki Sky Europe opuszcza Kraków

Does it mean that Sky Europe plan to reduce operations in Krakow in favour of operations in Vienna (Wiednia)?
Sorry if I'm totally off the ball.

[eu01]

Does it mean that Sky Europe plan to reduce operations in KrakowIt has been a public secret there, only now it became official. Sky Europe leaves Krakow in favour of Vienna. The operational base in Poland will be terminated with thicker purses (living in Vienna, apparently)]. Not much new in this article, the airport's chief is optimistic, and so on.

To my mind, the Sky's cost structure is to blame, not Krakow Airport (and passengers) alone. The article's interpretation is pretty naive: the carrier's load factor has been 87% only. Is it the reason? I think this is pretty good, actually. Once again: Sky is maybe a low-price carrier, but when the low-cost issue is being imperfect (and it's true), the debt rises. Avoiding of Ryanair by the retreat to Vienna might be not enough to save them.

What the article doesn't say is that the number of routes from KRK will be reduced VERY drastically. From about 20 to... maybe one or two.

Unofficially, there were many expectations that an other LCC would fill the gap instantly, such were rumours in Krakow. There were the negotiations with Norwegian to create a base there, it's not imminent, however. After some positive talks with Ryanair, it could have been them, it's been almost a certainty a month ago. But most recently the atmosphere worsened a bit, it seems that some conditions weren't fulfilled on the both sides and the one to replace Sky in this beautiful Polish city will be Centralwings, not FR. Still waiting for more official news, however.

Hey, where is Ryanair's Boeing with "Good bye, Sky Europe" inscription? Is it still flying?

[ryan2000]

The aircraft EI-DLF is currently based in Cork ironically one of Skyeuropes latests new destinations. Maybe it should read Welcome Skyeurope since Ryanair doesn't seem too bothered about competition there as long as its not Easyjet!

[eu01]

Jason Bitter, SkyEurope's new CEO, has sent a letter to his firm's employees yesterday in which he explains his motives behind the radical shift in the carrier's policy and abandoning the bases in Krakow and Budapest. As the complete text you can easily find on the internet right now, there should be no issue with citing it here as well.
Dear fellow SkyEuropeans,

Today is a difficult day as we have to inform you that we have made our decision to close our bases in both Krakow and Budapest effective with the winter schedule (October 28). This decision was not taken lightly and was debated within the board right up until the final decision was made this week. Our People team is putting together offers for those of you who wish to re-locate to one of our other bases. We have also spoken with other companies who are interested in employing some of our staff, particularly cabin crew. We will be providing further information on this quickly. This decision in no way reflects on the efforts of our people in Budapest or Krakow as you have all been delivering an excellent product we are all proud of; this is strictly an economic decision and is one of many being made to allow us to reach our mission of profitability.

I will now explain why we made this decision and what this means for our staff currently located in these bases.

1.) With our current fleet of 14 aircraft it is inefficient for us to be spread thinly across our region with small bases and we have made a strategic decision that it is better to be strong in a few places rather than weak in many places;

2.) We see a lot of progress being made in our performance in the past 5 months as we have improved significantly over last year in both revenues and costs, but we still need more;

3.) We have identified multiple ways we will save costs by simplifying our operation by reducing the number of bases and the number of companies we have. Our operation has been too complex and these complexities add cost. By eliminating complexities, we will reduce our cost base and also make our operation run more smoothly as it becomes more concentrated;

4.) We have decided after much research that our best chance of achieving long-term success is to build our operation around Slovakia, the Czech Republic, and Vienna. The short and long-term potential of these markets is significant and we know we have a superior cost base and product than our main competitors in Prague and Vienna. These markets have a good mix of both leisure and business traffic and are growing rapidly with very healthy national economies and most importantly, they have a less pronounced seasonality as their winter season is not as poor as in Krakow and Budapest.

5.) Prague and Bratislava/Vienna are also better located physically than Budapest and Krakow. For example our flight time from Prague to Amsterdam is approximately 1 hour less than from Budapest, yet the fare people are willing to pay is similar. We can achieve more production in these bases as there are more short-sector possibilities than in Krakow or Budapest where the sectors are longer and we can only fly 6 sectors a day, while in others we can do 8. These extra 2 sectors per day make a significant difference in revenue generation. Moreover, we will be able to have a much more stable and consistent roster for our crews with the new schedules we have developed for these bases;

6.) One of the major problems we have experienced with both Krakow and Budapest is the strong effect of seasonality. We do very well in these markets in the summer months and at Christmas time, while the rest of the year the market is weak. Simply put: it is difficult to make up the money lost in 40 weeks in the 12 weeks when the traffic is strong.

7.) There are other problems associated specifically with Budapest surrounding the economic conditions in Hungary. Our current passenger mix has very few Hungarians flying. This is the same for every airline flying in Budapest. Our primary market on Budapest flights has become incoming traffic and we cannot sustain this. We have clearly seen a reduction in Hungarian passengers as the economic condition in Hungary has continued to get worse. The excessive taxation in Hungary has left Hungarians with low disposable income to be able to afford a trip abroad when compared to the people in Czech Republic, Slovakia and especially Austria where disposable income is rising significantly. We know that if the economy in Hungary were different, our results in Budapest would be different. The tax regime in Hungary also makes it difficult to compete with our cost base as a Slovak company where the taxes are much lower.

8.) In Krakow we have many problems that negatively effect our operation that we cannot afford any longer. The airport is significantly below an operational readiness stage for a commercial airline base. There is only a Category 1 runway in one direction, the airport is built in an area where fog and strong tailwinds are common thus causing a lot of diversions every winter, there is no hangar at all for maintenance and most importantly the costs are far too high for such an airport.

There are many more reasons why we have taken this decision. One of these is our cost base at these airports in relation to our other bases. For example, our costs per departure in Krakow are more than 30% higher than in Prague and 52% higher than in Bratislava!!! To put this in perspective, it is cheaper to operate in Barcelona, Rome, and Milan than in Krakow. We tried to negotiate a reduction in charges in Krakow in order to remain with a base there. Unfortunately the offer we received was not enough to make a difference to overcome all of the costs and issues we have in staying in Krakow.

In Budapest, although cheaper than Krakow, we encountered a similar problem where we tried unsuccessfully to lower our costs. As with Krakow, the offer made by the airport was too low for us to be able to remain in Budapest and still realistically have a chance of reaching our target of profitability in our next fiscal year.

We believe that our agreements and locked-in low-cost base in Bratislava, Prague and Vienna ensures that we will be able to grow significantly in these bases without sacrificing profitability. Moreover, we firmly believe in the philosophy that we are better served to be a major player in fewer markets as we can benefit from the scale we can achieve this way.

We are not ruling out a return to these bases and will continue to serve Krakow this winter with flights from Vienna. We would dearly like to fly from Budapest, but under the current economic conditions, this does not work for us. When things change in Hungary, we will evaluate a return, but we have decided that we cannot continue to invest in markets that cannot be profitable for us in the short and even medium-term.

I hope many people choose to relocate and continue to be a part of the SkyEurope team in another base.

Sincerely,

Jason BitterWell, an interesting piece of reading. I think Krakow should reconsider its policy concerning the charges and fees. Surely, it's a very attractive destination for tourists from all over Europe, but being greedy doesn't pay. They could have lured one of the major players to create a base there to fill the gap, but if they weren't able to make any real concessions while negotiating with, say, Ryanair, they didn't have a real chance, unfortunately.

[Charlie Roy]

Since the announcement last week that Sky Europe were dismantling their Krakow base, the following replacement routes have been announced:

Centralwings

Barcelona Girona
Dublin
Athens
ManchesterRyanair

Milano Bergamo
Budapest hasn't announced any new routes since, but most of Sky Europe's routes were already competing with Malev and Wizz and the other carriers.

[LGS6753]

A report in today's 'Flight International' states that Sky Europe are trying to re-negotiate the terms of the covenants on their aircraft leases, as the current covenants have been breached.
Although not apparently viewed as critical by GECAS (the lessor), breaching of any covenant is bad news for a public company. Sky's fourth quarter results looked favourable, at least according to the spin they released them with, so hopefully this is a blip rather than an omen.
They have also decided to sell the two aircraft they currently own.

[eu01]

Sky Europe "first premium low-cost airline in Central and Eastern Europe"....
Where are you going? The corporate propaganda claiming themselves to be one of the most successfull carriers. What's the reality? Reading the Austrian economical news one could notice: "[in Dezember] Der Ladefaktor belief sich auf 67,7 (November: 69,6) Prozent, um 8,7 Prozentpunkte weniger als vor einem Jahr." The LF in December 67.7% ONLY. Less than in November, 8.7% less than in December last year. Oh, the retreat from East to West did not work? Or was it just an other kind of problems in question that would have required somewhat different remedia?
Finally, was MOL right in calculating the Sky's chances as close to nonexistent?

[Nightfire]

SkyEurope is finished. They have just received another 15 Million Euros from an investor, since otherwise they would have had to stop operations.
The shares of SkyEurope at the Vienna stock Exchange reflect the financial situation of the company quite well.

Jason Bitter has been sending ridiculous proposals all the time since he became CEO, but has been unable to do anything about the constant decline. It has been obvious for a long time, however, that it was a sinking ship.
Closing Budapest and Krakow bases was like admitting defeat; since then, everybody knew what the reality looked like.

I give them no more than a couple of months from now. They've sold their two own aircraft already, now they have those mentioned 15m to use up; after that, the lights will go out.

:{

[GLENO]

Wonder who will pick up the Ng's then?......IF they do go under..

[Captivep]

Can't comment about the financials but did fly with them from Manchester to Bratislava last week and it was a much nicer experience than any other loco I've been on (the rather naff uniforms notwithstanding...)

[OltonPete]

Quote

"Time for Ryanair to jump in and take over ?"

Or easy, they keep mentioning European expansion, they operate
NG's (for a few more years) and although very soon after GB they
would get a couple of ready-made bases, some crews, reasonable
aircraft and it would not take them long to sort the route structure.

Mind you it is probably a lot cheaper to watch them go then jump in!

Pete

[eu01]

Sky Europe reported a January load factor of 58,4 percent. Oops, fallen again!

[compton3bravo]

Hang on a minute, there has been an over 50 per cent increase in capacity so you cannot expect a high load factor on new routes. I think nearly 60 per cent over the expanded network isn’t too bad, the reckoning will come in the next few months, so hold your horses as we say in the UK.

[kingston_toon]

So... with this in mind... are they likely still to be flying on March 17th? :) I've booked a one-way with them from Bratislava to Luton, but have the possibility of also booking a Ryanair "insurance" flight for a fiver the next day from Balaton, just in case. Will the Euro15m tide them over until then?

On another note, all being well, how likely am I to get two seats together by checking in at the airport? Being a cheapskate, I skipped the seat selection during the booking process.

Cheers

Steve M (first post)

[LGS6753]

A very downbeat report from Sky Europe's CEO is reported on ATW:

SkyEurope Airlines conceded that it will not be profitable this financial year, which ends Sept. 30. Management told a shareholders meeting in Vienna last week that the LCC is working on maintaining its financial viability. CFO Nick Manoudakis said it will continue to work on cutting costs and has asked pilots to reduce aircraft speed to save fuel. SkyEurope also is open to investment from other carriers, he said. Asked by shareholders to reveal how much cash remained from a €15 million ($21.9 million) loan from investor York Global Finance, he revealed that €9 million had been spent on aircraft orders and cabin interiors. "We still have some cash left," he said.

[Buster the Bear]

Fly slower! They must be deep in the stuff that bears do in the woods!

[toledoashley]

and you say SilverJet is going bankrupt??? How much longer for skyeurope - somebody needs to put them out thier misery - they have never been settled, routes opened and closed all over the place.

[eu01]

Look at WizzAir, they have been operating precisely around the same area of the CE-Europe. Wizz seems just to have much lower operational costs and is thriving!

[Charlie Roy]

they have never been settled, routes opened and closed all over the place.

Central wings are the same! Poor guys...

[befree]

Done selectively this is not a bad plan, even for airlines that have money left. The same applies to driving. If you are late then some may race down the M1 at 85 mph. If however you do not need to be at luton so soon then keeping it down to 70 will save a fourtune. It is very non-linear with a large saving on fuel for only a small reduction in speed.

The more an airline spends on Fuel the less is remains to spend on staff.

[eu01]

they have never been settled, routes opened and closed all over the place.
Central wings are the same! Poor guys...
Centralwings (C0) are somewhat fragile nowadays, they tend to disappear or abandon some routes as soon as the competition is too near. Mostly because they have too expensive tickets to fight side by side with the competition (real lccs).

Hence, you can call them e.g. CentralZero or CancelWings, if you wish [some do just that] :E

[The SSK]

Done selectively this is not a bad plan, even for airlines that have money left. The same applies to driving. If you are late then some may race down the M1 at 85 mph. If however you do not need to be at luton so soon then keeping it down to 70 will save a fourtune. It is very non-linear with a large saving on fuel for only a small reduction in speed.


It doesn't quite work that way. Every aircraft type has a most efficient cruise speed and a most efficient cruise altitude. You may file a flight plan which includes both but it is up to air traffic control (specifically Eurocontrol Central Flow Management Unit) whether you still have that flight plan when you get your departure slot, and it's up to the controllers enroute whether you're allowed to stick to it once you're airborne.

[befree]

most efficient cruise speed

It depends on what you are tring to be efficent with as to the best speed. Overall costs are changed by flying slow so the most efficent speed in terms of money will drop as fuel costs rise. There was a big report I read from either Boeing or Airbus that explained the calculations. Getting it correct could save an airline from going under. It is very complex.

[The SSK]

You don't want to fly too slow. If you have to drop her down into third while going uphill it can play havoc with your fuel consumption.

[Nightfire]

And to reduce the cruise speed is just a drop in the ocean. It is a way to tweak the optimum performance of an aircraft, but if things are going that bad, the next thing might be to compromise the safety standards, for example saving on maintenance costs.

SkyEurope survived the past winter season by selling two aircraft and with a 15 million Euro credit, which will be due as from March 2008, otherwise York will have the right to take over all the remaining capital.

Nick Manoudakis had no explanations to give on the shareholder's meeting. His hopes are that "the worst is over", and that the summer season, which usually works a little bit better, will save them. That was also where he mentioned "cutting costs" as another factor.
Well, who knows; perhaps they really will survive yet another season. But the time will come when they will find no more naive money-donors anymore. It's a wonder they made it this far - staying alive since 2002 wasting millions, without any clear goals and without any success on the records.

[anna_list]

On Friday SkyEurope announced their 07/08 Q1 results (for October to December). They managed a net loss of EUR 11.3 M, compared to EUR 13.8 M last year.

This comes on top of losses of EUR 20M for the full year 04/05, EUR 57M for 05/06 and EUR 24M for 06/07.

The company has about EUR 20M cash in hand / under the mattress.

Full details in the Investor Relations section of the SkyEurope website.

[eu01]

Wow, I also want to have a good uncle to credit my account with millions of euros, if needed. Otherwise, a cost reduction programme could be a solution. But then, the base development in VIE doesn't really look like a cost reduction measure... :8

[Giams]

Hi Guys,
I'm a little worried after reading your posts. I'm going to have soon an interview with skyeurope and, if everithing goes well, leave my job to go with them.
Can anybody flying as pilot give me some impressions from inside the company?
Pay rate, roster, benefit informacion will be appreciate.
Thanks
Giams

[IRISHPILOT]

Don't do it. Don't leave a job for Sky Europe, unless it is worse. Or if it is your first flying job. - Chances are that they fold before your bond is up, so you are free to go after gaining a couple of hours...

If you are looking for something seasonal though, then go to Sky Europe through Parc. - An FO will make 5000 Euro and a Captain 7000 (all plus accommodation, transport, etc).

[Giams]

Thank you IrishPilot.
Loud and clear.
I'm going to stay were I am.
Cheers
Giams

[zapzap]

Reading these posts a couple of months ago nearly put me off booking. I'm glad I went ahead. Flights from Luton-Kosice & return were on time, nice aircraft and pretty good leg room. vitrually full both ways. Only down side was the rip off carparking at Luton. £50 for 4 days booked on line. over double the cost for LGW. :D

[Shamrogue]

SkyEurope seeks additional funding 19 September, 2008


Euopean low fares carrier Sky Europe is seeking additional finance after securing a 10 million euro loan.



The bridging loan was made available by 29.9% shareholder York Global Finance to help it operate through the winter.



But the airline, which operates from Austria, Czech Republic and Slovakia, is also looking for additional finance, believed to be up to 30 million euros.



International investment bank Rothschild has been appointed “to explore strategic and financing alternatives in order to secure the long term future and success of the airline,” a company statement said.



Sky Europe, established seven years ago, said the loan facility “will help support ongoing working capital and cash flow requirements for the winter flying season”.



The loan demonstrated York’s “continued confidence in SkyEurope’s long-term prospects as the leading low cost airline in central and eastern Europe with strong growing and strategic positions in Bratislava, Vienna and Prague”.



The airline operates 15 Boeing 737-700s on 76 routes to 41 destinations in 19 countries. It carried 3.7 million passengers in the past year. SkyEurope has flights from Birmingham, Luton and Manchester as well as Dublin and Cork.

[akerosid]

Apparently a major investor in SkyEurope - Yorks Capital - has pulled out of the airline, which leaves it needing a significant capital injection (estimated at about €70m).

Apologies for the link in German; will try and find another:

SkyEurope: Investor York will jetzt aussteigen | boerse-express.com (http://www.boerse-express.com/pages/707310)

Anyone want to make a stab at a translation, go right ahead ...

JetPhotos.Net Photo » OM-NGF (CN: 32680) SkyEurope Airlines Boeing 737-76N by John Fitzpatrick (http://jetphotos.net/viewphoto.php?id=6347613&nseq=2)

[A330-300]

Well it basically states, that the situation concerning SkyEurope is getting more and more serious concerning their financial situation. That the airlines has trouble paying their bills and the Investor "York" who recently supported them with a loan wants to pull out of the airline.

Potential investors were asked by the Rothschild Bank to make an offer until Tuesday this week to either take over the airline or buy a part of it. However, the newspaper (Kurier) states that chances are slim and that an investor would need to throw in an additional 70 Million Euros, on top of the money to buy SkyEurope.

Doesn't look good I suppose. Sorry for my poor english, I'm just a lil tired. Hope it helps.

Best Regards

[SVoa]

Apparently because the Sky Europe's share price fell significantly, this investor (holding 29.9%) want to pull out, if they can find a replacement. There are a few interested investors but nothing is for sure. Thats as much as I understand. Hope it helps.

SVoa

[goaroundnow]

....

"SkyEurope CEO insists main investor still committed to carrier



Eastern European budget operator SkyEurope (http://www.skyeurope.com/)Airlines is insisting that its central investor, York Capital, has not indicated any intention to withdraw funding from the airline and is still committed to the carrier.
SkyEurope chief executive Jason Bitter tells ATI, flightglobal.com's sister premium news source (http://www.rati.com/), that "every indication" from York - which agreed a €10 million loan to the airline last month - is that the company is "still very much engaged".
"They want to see this through," he says, suggesting that York would not have agreed further funding if it was intending to withdraw it.
An Austrian press report claims today, without citing sources, that York is seeking an exit.
Bitter points out that, as previously stated by the carrier, York's latest funding amounts to a bridging loan and that, as such, it will be "bridging to something".
Investment bank Rothschild has been called in to assess potential financing alternatives, but Bitter declines to disclose any specific options under consideration.
While he concedes that the airline's business has had a "rough go", notably as a result of fuel prices and credit-card processing issues, he insists that SkyEurope has "no problems" with its lessors - notably its main source of aircraft, GECAS.
York Capital could not immediately be reached for comment."

from FlightGlobal

[goaroundnow]

I totally agreee. This newspaper article was factless and spiteful. Clearly influenced by another Austrain carrier - my guess would be Niki, given the Austrians' obsession by a "national hero." There was nothing new or substantiated in it. Everybody in the "know" is aware that Sky needs cash as do a lot of airlines - nothing special or terminal (at this stage.) Some of the quotes and incidents mentioned are old news and do not tell the whole story (i.e. the aircarft kept in the UK.)

Maybe FlyNiki (who I bet are behind this) should start worrying about problems closer to home. This is to say that they have very close financial ties with AirBerlin who do not exactly have the sun shining out of their backsides at the moment!!

[Buster the Bear]

Good Luck chaps. the road ahead for all airlines is going to be turbulent!

[zapzap]

Good luck. Iv'e only flown with you once ( only been to Slovakia once , so that's 100% ).Very impessive operation from a SLF perspective. Hopefully you will survive the tough times and come out OK.

[goaroundnow]

SkyEurope Holding AG in discussions with shareholder York Global Finance II S.a.r.l for 100% sale of Operating Subsidiary
Bratislava/Vienna 14 October 2008 – As announced on 18 September, SkyEurope Holding AG ("SkyEurope" or "the Company") appointed Rothschild to explore strategic and financing alternatives in order to secure the future and success of the airline. The focus of Rothschild’s work has been and continues to be to search for an investor in or purchaser of the airline. To date, Rothschild has received several preliminary expressions of interest but only one concrete proposal, from SkyEurope's largest shareholder York Global Finance II S.à.r.l. ("York"). York has proposed acquiring for a nominal purchase price all the shares in SkyEurope's operating company, SkyEurope Airlines a.s., and a 3 % share in SkyEurope Hungary Asset Management Limited Liability Company. York will also assume SkyEurope Airlines a.s.' liabilities and certain liabilities of the Company. While Rothschild and the Company will continue to look for alternative investors who might ascribe a higher value to the Company's airline business, the board of SkyEurope has decided that the future of the airline is best served by entering into negotiations with York on the basis of its proposal whilst remaining open for negotiations based on any other concrete proposals in the best interest of the Company. Once completed, the transaction would be followed by a significant capital injection by York to satisfy SkyEurope Airline a.s.’ liquidity needs. The transaction is subject to negotiation, corporate approvals (a notice for an Extraordinary General Meeting will be sent to shareholders shortly) and regulatory approvals.

From skyeurope.com

[First segment]

The best thing would be if Mr.Bitter resignes. He must write here what he is paid for but people working hard inside the company are really scared of future. Just wondering:
-salaries on time?
-full amount?
-any idea how many pilots already applied elswhere?
I just hope for them the situation will be solved soon and company sold but it is still harder to believe right now.

[goaroundnow]

If you work for SkyEurope you should know the answers to your questions (except about Bitter.) If you do not work for them, you should mind your own business!!

[davidjohnson6]

SkyEurope has made a formal announcement about when 2 loans fall due.
10 mn euros falls due on 5 November, and another 15 mn euros falls due on 22 November. Both loans come from York Global Finance

DJ EURO ADHOC: SKYEUROPE HOLDING OTHER SKYEUROPE ANNOUNCES THAT THE EUR 15 MILLION LOAN BECOMES DUE AND PAYABLE ON 22 NOVEMBER 2008 (http://www.ad-hoc-news.de/DJ-euro-adhoc-SkyEurope-Holding-other-SkyEurope--/de/Unternehmensnachrichten/19807969)

or

Presseportal: SkyEurope Holding - euro adhoc: SkyEurope Holding / other / SkyEurope announces that the EUR 15 million loan becomes due and payable on 22 November 2008. (http://www.presseportal.de/pm/59627/1293048/skyeurope_holding)

I'm surprised that the loan of 10 mn euros which was initially described in mid-Sept this year as being a bridging loan to help the airline through the winter falls due in early November.

Exactly why the company felt the need to make a formal announcement puzzles me - possibly some rule on the Vienna stock exchange, or possibly something else.

I'm not that familiar with the situation regarding York Global Finance (they own 29.9% of equity - do they want to take full control of the company, or not ?) but I'm guessing that 10 Nov or 22 Nov might be significant dates regarding control of the shares. My guess is that when the loan was granted, York saw this as a cheap and quick way of taking control of the airline without having to pay off the other shareholders. Whether this has any effect on flights, I don't know.

If anyone with more knowledge of the situation would like to comment...

[davidjohnson6]

York Global Finance have given SkyEurope one extra week to find the 10 mn euros to repay a loan. SkyEurope therefore need to find the money by 12 November.

No mention has been made of the other 15mn euros which needs to be paid on 22 November.

Presseportal: SkyEurope Holding - euro adhoc: SkyEurope Holding / other / SkyEurope announces that the EUR 10 million loan becomes due and payable on 12 November 2008. (http://www.presseportal.de/pm/59627/1295529/skyeurope_holding)

[BAladdy]

I hate to say it but I will. It is looking bad for Sky Europe. I take it if the don't come up with the cash by the 12th. The lender will end up seizing there assets to cover the cost of the loan.

Does anyone know if NE owes money at any airport they fly to for ground services, ATC, fuel etc. Also are the keeping up with the payments on their GECAS leased aircraft. One of which, OM-NGH was put into storage last month.

[davidjohnson6]

It is not impossible that York are simply following this strategy as a way of gaining 100% of the shares on the cheap. York are essentially a hedge fund - their website says they have US$16 bn under management. The York Global Finance fund which is involved here will have a significantly smaller amount of capital to play with.

On numerous European stock exchanges (I don't know about Vienna) if one purchases more than 30% of the shares of a company in a relatively short period of time - e.g. one year - one is obliged to make a formal offer for ALL the shares of the company. Those owning the other 70% of shares are of course free to decline your offer to purchase the shares.

York currently own 29.9% of the shares, and the airline has borrowed 25 mn euros from York. If SkyEurope are unable to pay the loan, York can then require the company be put into administration. They can then buy the company from the administrators without having pay a cent to the other shareholders.

For existing senior management and all shareholders apart from York, they have probably lost out. For York, it's time to decide - do they want to seize control of the company and make it profitable before selling it on in 2 years time, or do they want to walk away and just get back perhaps 50% of the value of the loans from bankruptcy proceedings ?

[Charlie Roy]

But aren't Sky Europe owed loads of money by some credit card company?

[Wiggly Bob]

Rumoured to be interested in Olympic. Not sure whether this would be the case in their current predicament.

Greece says 13 groups express interest in Olympic Air | Reuters (http://www.reuters.com/article/rbssAirlines/idUSL549609620081105)

Edit - I see the link no longer says "Sky Europe" but "York Capital".

[eu01]

SkyEurope has announced that two loans granted them by York Global Finance (EUR 15 million loan granted in December 2007 and the EUR 10 million loan from September 2008), have been extended to 15 December 2008. In accordance with the loan agreements, both loans were previously due for repayment on 22 November 2008.

[eu01]

SkyEurope reported Friday that its net loss for its business year running until the end of September more than doubled to 59.4 million euros, as results were affected by high fuel prices. As of September 30, the budget carrier's cash reserves amounted to 1.3 million euros, down from 11.6 million euros in 2007. Operating losses widened to 56.1 million euros, from a loss of 20.9 million euros in the previous business year. Sales increased by 10.5 per cent to 260.9 million euros, but SkyEurope paid 67.1 per cent more for its fuel in the business year, ending in September, than in the previous accounting period.

Now by December 15th they'll have to re-pay EUR 25 million... will York Global Finance take over control?

[racedo]

Given their route structure they would fit nicely into Ryanair.

[eu01]

Don't count your chickens before they are hatched, give SkyEurope a chance.

Anyway, I do not believe FR were keen to take NE over with its planes and debts. They might wait for a vacuum in CE Europe to fill it themselves. The airports (like Bratislava) having lost the important carrier are also more inclined to negotiate, passengers are searching the replacement for their routes... that's what Ryanair is certainly expecting.

[racedo]

I hope they survive but given the current state of the market and funding there has to be a real risk. In Ryanair's case there is the opportunity to pick up routes / services and people so they might do it......they did with Buzz.

[davidjohnson6]

SkyEurope isn't over until York play their hand. If York decide they want to own an airline and can get the regulatory aspect arranged, SkyEurope will survive.

The loan from York lasts to 15 December - and one imagines that flying is profitable over Xmas. It seems unlikely flying would stop before Monday 5 January. As to post 5 Jan, I guess it's up to York to decide.

Apart from Bratislava, NE's 2 biggest bases are Prague and Vienna. I doubt that Prague will offer MOL cheap fees (could Pardubice ever become Prague-East ?), and I'm even more doubtful that Vienna will offer the cheap fess that MOL so craves.

[eu01]

flying is profitable over XmasActually, nothing is profitable any more if you run out of cash. By December 15th most of Xmas flights are already sold and they sell flights for January - February, a low-price season.

[Bearpit]

Racedo,

Given number of new a/c Ryanair have on order, no earthly reason for them to have to buy up ailing airlines - you just wait until replacement opportunities come along, and they're coming thick and fast at present.

[morroccomole]

Back in the summer we booked flights with Sky Europe to go from LTN to BTS in Feb '09. At the time they were offering 3 flights per day and we chose the early flight. In October they cancelled that flight and transferred us onto lunch time flight. Today they have cancelled the lunch flight and offered us the bed time flight. In October they offered a money back deal, if they offer it again I think I will take it!

[racedo]

Bearpit

I agree but if you buy an ailing airline you get access to their bookings and while probably not that substantial you can also email every single person who ever flew with them and do a seamless transition with aircraft handed back to the lease company.

Additionally in the case of Ryanair as they are in the longer term market for new planes then having some A319/320's to fool around with ensure Boeing play ball on price especially when Ryanair engineers are making the right noises about how wonderful the airbus products are everytime a Boeing rep is visiting.

[captplaystation]

I posted on terms & endearments that it has been reported on ppjn.com that flight crew not paid for 3 months. Another contributor said as far as he knew this was true of Air Slovakia but that SE had paid last month albeit late. You can't really run a company using unpaid salaries as working capital, so I hope the posting on ppjn was just a disgruntled late paid employee rather than an accurate statement of the situation. With this magnitude of loss, cutting and running is not a very sensible long term investment, but picking up the bill will not be too tempting either. A would be a shame to go under now that oil (for however long) has come down to the current level.

I heard a story a while back that they tried to sell out to Ryanair & that the response had predictably been
" nah, we will just wait for you to go bust then move in & take over your business" :=. I can see no earthly reason for a softening of that attitude, quite the contrary.

[Cyrano]

I agree but if you buy an ailing airline you get access to their bookings and while probably not that substantial you can also email every single person who ever flew with them and do a seamless transition with aircraft handed back to the lease company.

Additionally in the case of Ryanair as they are in the longer term market for new planes then having some A319/320's to fool around with ensure Boeing play ball on price especially when Ryanair engineers are making the right noises about how wonderful the airbus products are everytime a Boeing rep is visiting.

Sorry, but with respect, racedo, I have to disagree. There is no earthly reason for Ryanair to buy a competitor in the situation of SE. Access to their bookings? O'Leary has been doing his best to talk down "shaky airlines" and minimise their bookings. The forward bookings SE is likely to have will be limited and at low yields. Why would Ryanair not just wait for a competitor like SE to close and then start whatever routes they want, with fares they set themselves?

And some A319s/A320s to fool around with? Please! You think Ryanair didn't already get a good enough deal from Boeing for the foreseeable future? Are you suggesting that a few inherited A319s will somehow make Boeing "play ball on price" but the prospect of losing a further hypothetical Ryanair order to a very motivated and aggressive Airbus Industrie (as happened a few years back with easyJet, until then a dyed-in-the-wool 737 operator) won't? :confused:

[eu01]

@racedo, Cyrano

Actually, SkyEurope operates Boeing 737-700's, in the region WizzAir has Airbus fleet, not Sky.

[davidjohnson6]

Anyone heard any recent developments on this ? Google and the company website seem rather quiet. 15 Dec is not far off now...

[GnRdL]

Anybody knows how many aircrafts are in every SkyEurope Hub?

Thxs!

[TartinTon]

Latest numbers don't make for good reading:

SkyEurope’s November passenger numbers declined by 22.8% to 219,590, following a 21.4% cut in capacity, while load factor was down 1.2pp at 68.4%. On a rolling 12-month basis passenger numbers increased by 4.8% to 3.67m, but load factor dropped 7.6pp to 73%.

Those are poor numbers compared to virtually all other locos.

[racedo]

I agree they do look depressing and given the move Eastwards of their destinations over last 2 years they look like they seeking a market to survive it.

Wish them luck but Pax number don't look good.

[compton3bravo]

I agree the numbers are not very impressive but remember it is not how many passengers you fly it is what they paid for their tickets. Let us hope like you that they succeed because it is not good for competition for just four or five low cost airlines in the whole of Europe.

[eu01]

SkyEurope did not move Eastwards over the recent years. Looking geographically, they moved more to South-West, e.g. CEO Jason Bitter has terminated the base in Krakow and shifted its planes to Vienna.

Two airlines get easily confused. It's Wizz that started flights to e.g. Ukraine and Bulgaria. Sky tried to seek other solutions, but it didn't work. Concerning the fares, they are very low nowadays.

[racedo]

SkyEurope did not move Eastwards over the recent years.

Guess its all relative.

SkyEurope had lots of flights from UK and Ireland pulled back very quickly from that hence my Eastwards comment but agree saying South West may have been better:)

[RoyHudd]

Good luck Sky Europe. Slovakia needs you, and so do we. Good airline!:ok:

[davidjohnson6]

Looks like SkyEurope have found EUR 10 million for the time being:

SkyEurope Holding AG announces that its 100% subsidiary SkyEurope Airlines a.s. has agreed with Longstock SAPO Limited, a limited liability company with itsregistered offices in Gibraltar, on a bridge loan facility of EUR 10 million inits favour in light of a possible future equity injection into SkyEurope HoldingAG by Longstock SAPO Limited.

Google on Longstock SAPO doesn't throw up anything relevant without referring to this loan. Possibly a different company has set up Longstock just for the purpose of its loan to SkyEurope - if anyone knows who is actually behind Longstock.... do tell

If SkyEurope are losing as much money as they have been in the past, they need some kind of transformative action to take place soon - insted of trying to simply stave off bankruptcy

[racedo]

Sounds like a deal to buy them some time. Got to be lots of security for it as nobody would offer a loan that size without at least double value in security.

[davidjohnson6]

Both loans (EUR 10m and EUR 15m) from York have been extended until 15 January

[maxrpm]

Looka like YORK trying to get them over the winter

[PeterPaul]

Longstock SAPO Limited is a new company with partners Longstock of Lisbon and SAPO International of Athens. The new company will seek to control, with management consenting, the airline, and provide additional necessary capital for a restructuring. Longstock is an old airline business and SAPO is in yacht leasing, backed by Dubai funds.

It seems that a firm and lasting plan is in place.

[rolibkk]

Have heared that GEACS pulled back 3 737 last week and another 6 today, plus schedules are completely messy today with a lot of flights not operating out of VIE and others delayed for hours. Is this the end of SkyEurope or is my source unreliable?

[davidjohnson6]

rolibkk - your source seems to have at least some good information

http://www.flightglobal.com/articles/2009/01/09/320876/gecas-terminates-lease-on-six-skyeurope-aircraft.html

SkyEurope's side of the story...
EURO ADHOC: SKYEUROPE HOLDING OTHER LEASES FOR GECAS AIRCRAFT TERMINATED, DEADLINE FOR THE LONGSTOCK SAPO BRIDGE FINANCING EXTENDED AND LIQUIDITY ENHANCED THROUGH RELEASE OF FUNDS FROM CREDIT CARD SALES :: WIRTSCHAFT & BÖRSE (http://www.ad-hoc-news.de/euro-adhoc-skyeurope-holding-other-leases-for--/de/Wirtschaft-Boerse/Marktberichte/19968460)

[davidjohnson6]

I know that having airframes seized is a bad sign of the health of an airline, but can any of the financial bods out there tell me how bad this actually is ?

Ignoring the USA (where they just wave a magic wand, recite the spell 'Chapter 11', and all is well again), is leased airframe seizure one of the last things that happens before flying ceases completely, or do airlines sometimes still carry on for an extended period of time after this ?

SkyEurope are up a creek - but do they have a paddle ?

[beaucaire]

Nobody should forget that Skyeurope has burned millions of taxpayers money,since the founding was financed by the European Bank for Construction-which is a tax-based finance-institution financing economic projects in the eastblock..

[compton3bravo]

Just like you French then!

[AlphaDeltaFlyer]

SkyEurope 737 lease termination prompts flight delays
Simon Warburton, London (09Jan09, 16:59 GMT, 238 words)


SkyEurope Airlines is experiencing delays at its central European bases after six of its 14 Boeing 737-700s were taken back by the lessor.

The aircraft have gone back to US supplier GE Commercial Aviation Services (GECAS), which terminated the leases yesterday.

SkyEurope Airlines chief financial officer Nick Manoudakis tells ATI: "Nobody has been left stranded, [but] there are some delayed flights. What we have done is replace some of our missing units with support capacity, primarily on a wet-lease basis.

"Unfortunately, we did not have a whole lot of time, so that caused some delays. The wet-leases have come from various operators, but mainly Air Slovakia."

Manoudakis declines to comment on the circumstances surrounding the return of the 737s to GECAS, stating only that it was "contractual".

Hinting that current market conditions could make the acquisition of replacement aircraft easier, Manoudakis says: "The market is a bit softer now, so we will just sit down and look at it as an opportunity."

He concedes that "a couple of people are a bit edgy", but insists that as long as "nobody panics" SkyEurope will weather the storm.

"It is not an easy situation but as far as I know it is business as usual," says Manoudakis. "The biggest risk we thought might be reactions from other suppliers, but that seems to be okay. The company is looking for investment, but I am confident this particular incident can be contained."


Source: Air Transport Intelligence news

[hatters united]

Well said that man :D

[racedo]

but can any of the financial bods out there tell me how bad this actually is ?


Think you could start becoming the equivalent of a subprime mortgage with assistance of a lender of last resort.

You will get leases but you will have to pay up front and at a premium.

Additionally you may find that airports require you to pay fees up front for landing fees and fuel and potentially seize aircraft where these are unpaid.

Bottom line is you need a good line of credit who will support you while you get a decent business plan or investor on board.

Hopefully they will survive but it will be tight for a couple of months.

[LTN ATCO]

I wondered why they operated today with a plain white 752 and a SEAGLE 737!
Now i know.

[Buster the Bear]

Datamonitor - SkyEurope December passenger numbers down 13% - News (http://www.datamonitor.com/industries/news/article/?pid=DEFE2F78-6DB5-4A23-A700-3EAF3476F89D&type=NewsWire)

[cumulo-granite]

Wizz have just announced they will open a base in PRG this summer. I think they plan to start flying to PRG earlier than that. That's not going to help Sky.

[racedo]

Peter Paul

I didn't bring up the issue of Skyeurope failing as that was posted by someone else regarding their issues with loans that were due in Dec. I suggested perhaps FR may take them over but that theory was quickly shot down which I accepted. Think I have wished them well a few time and hoped they survive.

It was asked by DavidJohnson6 on 9th jan how bad it could be financially following aircraft being seized and I responded with some of the implications for any airline......this is pretty generic to any airline.

Now you may think thats thrashing them but again can you answer these questions.

1.) Do you believe a lease company will give an airline that appears to have cash problems a lease of favourable terms with lots of credit.
2.) Do you believe that an Airport will give an airline similar.

Lets get out of the personal stuff and look at the way the industry will behave.

[LGS6753]

Sky Europe have continued to operate using a mixture of sub-chartered aircraft from Dubrovnik Airline, Seagle Air, Air Slovakia and at least two others.
Obviously Sky have managed to convince these sub-charterers that they will be paid, or they have the resources to pay up-front.

[eu01]

Now tell me that using these sub-chartered machines can be profitable for the low-cost airline during the low season and will not worsen its debt-haunted economy?! Must be just cash burning, nothing else! Who's paying for that?

[kingston_toon]

Any updates? I have four flights booked with SkyEurope in March [London - Bratislava - Istanbul (-train-) Sofia - Vienna (-train-) Bratislava - London] and having travelled with them before and consider them a decent airline, have my fingers crossed they survive! Is Thursday likely to be D-Day regarding the loan repayments?

Checking their arrivals at PRG, VIE and BTS over the last day or two, they seem to have covered just about their entire flying programme with fewer delays than you might expect (albeit with a few huge ones).

Also, my Sofia - Vienna flight has today been changed for the *fourth* time, although the new time is the most convenient yet! This suggests they are reducing / re-arranging their schedule over the coming months to accommodate the smaller fleet.

Thoughts?

[easyland]

They use also 2 B733 from Bulgaria air : LZ-BOW and BOR...

[neiltodd]

I was on Manchester - Bratislava on Weds and returned on Thurs 15 Jan, four and a half hours late into Bratislava and three and a half hours late into Manchester. Sky Europe has put on a 757 and combined the Luton and Manchester routes to make a cicular route, passengers get on and off at each airport......Bratislava - Luton - Manchester -Bratislava. Theres no way I would have booked the flight if I'd known...never again

[davidjohnson6]

SkyEurope's loans from York have been extended from 15 Jan to 15 Feb. You have to marvel at how NE manage to carry on in the face of adversity

[PeterPaul]

neiltodd,
You must be one of the very few most unlucky. Sorry to hear.


davidjohnson6,
It seems this is one strong point others cannot match. And they do have many paddles, don't worry.

The other strong point must be quality of service, which in the worst of cases, such as mid January neiltodd mentioned, is what other airlines consider as their business as usual.

Skytrax quality awards, are not given away, you know. I had the best of flying experience, with SkyEurope. Did you?

[zapzap]

My Nephew married a young Lady from slovakia and Sky Europe is used by both families for visits to/from Cochise I've only used them once, but the families use the airline regularly. I have nothing but praise for their quality as do both families. I wish them the very best of luck. :D

[TBSC]

Down to 4 a/c now:

"Chishima Real Estate Co., Ltd has terminated the lease of OM-NGQ SkyEurope (http://www.planes.cz/en/photo/1034011/b737-7gl-om-ngq-skyeurope-esk-ne-prague-ruzyne-prg-lkpr/) Boeing 737-700. The aircraft left to Bournemouth today, remaining only 4 aircrafts in SkyEurope fleet: OM-NGG,NGJ,NGN and NGP."
[ www. P L A N E S .cz ] (http://www.planes.cz/en/?win_res=1024)

[davidjohnson6]

Terminator or SkyEurope ?

Listen, and understand. SkyEurope is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until it is dead.

SkyEurope never gives up !

:}

[PeterPaul]

davidjohnson6
Maybe you are not well informed. How about that

Return the aircraft was planned, introduced the speakers, and therefore in his indication that the company had any problems. He added that it is economically advantageous for the company. Rent aircraft from the competition as a substitute for returning the machine is under Kika only a temporary solution and the company will expand the fleet again.

SkyEurope má už jen ètyøi letadla | Ekonomika.iHNed.cz - (http://ekonomika.ihned.cz/c1-33435380-skyeurope-ma-uz-jen-ctyri-letadla)

[davidjohnson6]

PeterPaul - I'm not quite sure what you're trying to say. My altered quotation from the Terminator film was to express admiration and astonishment that despite all its problems and troubles, SkyEurope still manages to keep on flying something close to a full schedule - the airline just seems to refuse to give up !

[PeterPaul]

despite your asking to? Dismayed?

[TBSC]

SkyEurope still manages to keep on flying something close to a full schedule


36 revenue legs (today) is nowhere close to a full schedule (16 of them with wet-leased a/c).

[iwhak]

How could it possibly be 'economically advantageous' to wet lease in to cover your schedule. Paying somebody elses fixed overheads, plus a margin, in addition to your own overheads.........hmmm

[PeterPaul]

Did you post your concerns about other airlines, or just for SkyEurope?

[eu01]

PeterPaul, this situation does not require any snidy remarks from anybody, I think it is a real concern. SkyEurope might be very sympathetic, pax- and staff friendly airline, but it's an enterprise and it's a business that should earn money. Any business has to be profitable simple to preserve its credibility. Sky has never been profitable so far. If my charming neighbour notoriously asks for money, borrowing many times from anyone unable to pay back, he becomes not so charming for all involved.

SkyEurope has made some very fundamental mistakes, the carrier's troubles are worsening and it's about time to ask is this airline still reliable? As davidjohnson6 writes "SkyEurope still manages to keep on flying something close to a full schedule - the airline just seems to refuse to give up" - but does it actually have sense any more? Look at the fate of some investors over there. On Vienna stock market the shares of SkyEurope were sold for as much as 6.35€ three years ago. Today the share price has oscillated between 0.18-0.21€. What does it tell about the status quo? And what if the aviation authorities became on the issue critical enough to revoke the license? One should be concerned for real, no implied meaning needed.

[PeterPaul]

PeterPaul, this situation does not require any snidy remarks from anybody,
But your remarks are just that. aren't they?

Your "arguments" have been answered again and again, and you only try to recycle them again and again.

Please, please, please, do understand. You are not convincing anyone. Everyone is convinced that all this you are doing is nothing but deliberate hypocrisy. Only to benefit competitors.

That is the reason nobody cares to answer you anymore. Everybody is answering with theier wallets. They keep buying tickets of SkyEurope. You very well know that load factors are actually increasing. Don't you? While others' are decreasing. Don't you? Even when routes are decreased, people is buying more tickets. How can you explain this?

These are the facts and the rest you mention is just recycled garbage. Now even the revoking of the licence. It is just a garbage drawn from the dust bin, where it was thrown 2 (TWO) years ago. And you know this also, it is a years-old garbage. People doing this mud-slinging connot convince anyone. It just invokes yawn.

Why don't you go to sleep?

[TBSC]

Share price down to zero, 70% of the fleet disappeared, a fortune payed for wet-leases, no salary for staff but hey: load factor is increasing. :D

Flights merged and flown with B-757s and 3 hrs long Manchaster flights operated with Y70 ATR-72. A great way to make your LF go up and prove that your business is better than ever. :rolleyes: :ugh:

[Copenhagen]

PeterPaul,


I understand that it is hard to remain positive in the face of adversity, constant bad news and negative rumours, and I applaud your strength, but your agression in this thread is simply astonishing. You consistently attack the person, and not the arguement.

You have to admit that the cards are stacked against SkyEurope at present.

[eu01]

@PeterPaul.

If you are not related to SkyEurope, I could wish any airline so fierce backers as you seem to be. If you are involved, you might be not quite objective, though.

Anyway, I wish NE well. I flown with them once, nothing to complain about. If only the economical issues were solved (and the route I could use introduced), I would undoubtedly fly again.
Why don't you go to sleep?Just doing that. Goodnight! :ok:

[davidjohnson6]

PeterPaul - I do not work for Ryanair, Wizz, Austrian, CSA, Niki or their suppliers, or any of SkyEurope's major rivals.

However, I know 3 things:
1) The accounts show for the last few years:
12 months ending 30-Sep-04 - loss of 10 million euros
12 months ending 30-Sep-05 - loss of 28.6 million euros
12 months ending 30-Sep-06 - loss of 57.2 million euros
12 months ending 30-Sep-07 - loss of 24 million euros
12 months ending 30-Sep-08 - loss of 59.4 million euros

2) The latest annual accounts show a negative equity of 61 million euros. The company has said they are seeking a significant recapitalisation. A recession is not a great time to go seek fresh equity.

3) Gecas served a notice of default on lease payments in autumn 2008. Of 14 737s, 10 have been returned to lessor in the last 3 weeks. Maybe this was economically advantageous, but it is unusual to replace dry leased aircraft with wet leases, since at the very least one ends up effectively paying two sets of salaries.

Yes, the load factor has increased, but is there any data on the average ticket price paid as well ? People are still buying tickets, but are they booking 3-6 months in advance thus providing extra working capital, or just 1 month in advance ? I don't know. Provided the brand is well known, relatively few people consider an airline's financial health before buying a ticket.

It really would be nice to see SkyEurope survive, or merge with an airline like Wizz or Blue Air to provide a strong counterbalance against Ryanair, Easyjet and Air Berlin. Maybe they will find a way to pull through but I just know it will not be easy.

[hatters united]

Are Skyeurope still operational ?

I did not see any flight arrivals or departure info on the Luton Airport web site this morning.

[davidjohnson6]

hatters - Bratislava and Prague airport websites are showing NE traffic.

[Ondras]

of course, still flying

[jetsetwilly]

No Sky's are planned on Tues AM for the rest of the W08 season.

JSW.

[PeterPaul]

I had a very pleasant flight on Staurday, arriving 10 minutes earlier in Vienna than planned.

Also I had a very smooth flight today with SkyEurope too. Arrival was 15 minutes early.

Maybe is the early arrivals that cause some trouble?

I would suggest that you people fly more frequently with SkyEurope.

It is a real fun !

[TBSC]

I had a very smooth flight today with SkyEurope
Which airline it was? Air Slovakia or Bulgarian Air?

[PeterPaul]

It was Skyeurope for sure. To your pique and fury! Millions who travel, know it, why don't you try too? You miss much you know.

If you try once, you will get addicted. Like millions who did. Don't be afraid.

[TBSC]

Their 3 own aircraft still flying (OM-NGG/J/P - OM-NGN is on C-check) were nowhere close to LTN yesterday therefore it might have been a SkyEurope-like fantasy.

[PeterPaul]

I told you I was on SkyEurope flights.

Reality is hard, I know.

Do you feel well? I hear weather is getting worse. You must look after yourself.

[jetsetwilly]

No SkyEurope 700's will be appearing in LTN for a while. Air Slovakia & Bulgarian Air will continue to operate with Sky Cabin Crew mixing with the other crew.

JSW.

[captplaystation]

PeterPaul is like the guy in Monty Pythons Flying Circus who has his arms then legs cut off, but still his torso writhes around on the ground hurling abuse at the one who cut off the arms & legs.
Yes Sky may indeed survive, but it will take some "special" financial dealings for them to do so, and their survival does indeed defy conventional business logic.
You are however wasting your time pointing out (as davidjohnson6 did above ) the facts. All this results in is a fresh invective from Greece telling us what a wonderful airline they are & how we should risk our money booking with them , even if we justifiably worry whether they will be around to operate our booked flight. Of course, as far as he is concerned, we all work for their competitors and have an alternative agenda by posting here, I have been through all this bullsh@t on another thread, even though I emphasised that the last thing I wanted to see was more Boeing pilots on the market :=
You are wasting your time guys, PeterPaul has a magic crystal ball, and unshakeable faith that financial miracles happen.
He refuses to believe it, but I do actually hope he is right, I am just unfortunately more rational & realistic in my expectations than he appears to be. :hmm:

[PeterPaul]

Captplaystation,

You try to revive your "arguements" so well answered in another thread, as you said. I don't think proper to counter your personal attacks also in this topic. And repeat old answers.

I implore you, do not worry that much for the future of SkyEurope. Just live in peace, so others can live in peace also. I believe there is nothing SkyEurope did to merit such nasty feelings from you (Monty Pythons etc). No room for revenge. PLEASE go to sleep.

[S78]

PeterPaul,

2 Sky Europe flights diverted into BHX today - using Air Slovakia and Bulgaria Air aircraft.

Is the cost of wet leasing in other airlines to cover your low cost schedules not something to worry about?


Sounds like there's some financial witchcraft going on at Sky Europe:suspect:


S78

[retrosgone]

It is very expensive to lease aircraft in. And that does not take account of paying the salaries of those pilots who used to fly the 737s that have been returned to their lessors. It can't be a comfortable time at Sky - and normal accounting rules as they would be applied in much of Europe must have been "adjusted".

Good luck to them, and to the benefactors who are committing their money to keep them afloat.

[Nightfire]

On the other hand, SkyEurope keeps on getting some more cash from somewhere. Everytime it's gone, some new investor appears and puts in some more. It has been like that for several years; the company never made money, let alone profit, from selling coffee or peanuts onboard.
And yet, Sky is still alive, despite all predictions.

I don't understand the details behind it, but I'm sure that no investor would do that if there were no reason behind it.

[eu01]

Nightfire, I'm having very similar thoughts to yours. SkyEurope keep losing money, no radical improvement in sight, load factors worsen, the business obviously limps. Not only for them, but all around getting the loans is becoming increasingly difficult, yet the airline... has the money to pay for the wet-lease, to keep flying! Amazing, isn't it? Where's the wellspring of money and the reason for that?

[Nightfire]

I don't know. But as long as it keeps on going... :cool:

[STATSMAN]

79 pax on NE190 inbound to MAN tonight.

[captplaystation]

PeterPaul,
No nasty feelings, just amazement (AS USUAL PLEASE READ WHAT I WROTE, NOT WHAT YOU THINK I WROTE, OR HAVE DECIDED THAT I WROTE := ).
On a personal note, I wish I had that level of "financial acumen/ creative accounting" available to me.
If so, believe me, I wouldn't be wasting my time here. :rolleyes:

[PeterPaul]

captplaystation:
I wish I had that level of "financial acumen/ creative accounting" available to me. If so, believe me, I wouldn't be wasting my time here.

OK, you have explained things very clearly now.

[hzorglub]

As a very regular user of NE (about 60 flights in 1 year) i found this forum while searching what happens to Sky. All that i can say is since several weeks on the line Paris Bratislava:
- planes are mixed up but mainly from Air Slovakia (one from Seagle also) and no more plane from Sky. Old planes compared to the brand new ones Sky used
- got once a B750 with the first 100 seats filled and the remaining 200 back seats empty after more than 3 hours late. Looks like the plane was unknown till the end
- had twice a free trip to Prague before going to Bratislava (2 hours late)
- had my flight booked for friday feb 20 canceled

I found the forum very interesting so i decided to give these informations. Although I like Slovakia and would like to help it is no longer possible to manage business like this and decided to switch to travel from Vienna via Niki (and taxi to Bratislava). As several other people i used to meet during my numerous flights.

Bratislava airport will be empty if Sky stops. 1 or 2 lines with Ryanair and few flights of Air Slovakia outside. May be this is the reason why they get some help from somewhere to continue.

And thanks for all the interesting informations i read tonight.:)

[pee]

Bratislava airport will be empty if Sky stops. 1 or 2 lines with Ryanair and few flights of Air Slovakia outside. May be this is the reason why they get some help from somewhere to continue.
Generally, the economy tends to fill any "vacuum" in the market very quickly if someone else has to quit, whatever the reason. If Bratislava were a small secondary airport there might be a significant loss of routes, but the airport's location is too good to become deserted. I'm sure many airlines are eyeing the situation very closely, one of them being FR, that's obvious.

SkyEurope didn't have any good news yesterday:Vienna - Ailing low-cost carrier SkyEurope reported Tuesday that passenger numbers dropped by 23.5 per cent in January, compared with the same month of the previous year.

[Boingboingdriver]

Hzorglub,

Sky europe is flying Paris route from Vienna also where most of NGs (the ones you like) are based.
The vienna routes and schedules(on time performance) land within 15 minutes more than 85 perc of time.(check our website).

Sorry to hear you leaving us..

Capt STD:hmm:

[Nightfire]

Well, even those of my ex-colleagues/friends who are still working for SkyEurope meanwhile all agree that the end is coming.
The question is just when. Despite all earlier predictions, SkyEurope always went on and on. I think it might still fly for quite a while, and surprise us all.

[hzorglub]

Hope so.

I will check the advice for the Vienna route. I though the difficulties were everywhere but if it's OK with Sky through Vienna why not.
In 60 trips I never had the least incident with Sky. Everything is perfect while you are in flight. Only negative point is ground service.

[Boingboingdriver]

Glad to hear you are considering our vienna service to Paris.
I am sure you will be satisfied , the ground handling is i believe much better.
If you come around any problems there please PM me with the actual facts and I will forward the problem directly to the person upstairs:E and i will send you the feedback.

In the meanwhile I wish you pleasant flights with us.

Capt STD

[OltonPete]

From flight global quoting ATI I believe.

Potential SkyEurope backer SAPO splits from partner (http://tinyurl.com/acbkq5)

Pete

[TBSC]

NGs gone, Classics will be back: their fleet will grow with an ex-FlyLAL B735 (LY-AWF) soon.

[davidjohnson6]

Due dates on 25m euros of loans from York extended from 15 Feb 2009 to 15 March 2009

Presseportal: SkyEurope Holding - euro adhoc: SkyEurope Holding / other / SkyEurope announces that the deadline for repayment of York loans has been extended to 15 March 2009. (http://www.presseportal.de/meldung/1354012)

[eu01]

Due dates on 25m euros of loans from York extended from 15 Feb 2009 to 15 March 2009How much money will SkyEurope earn inside this time frame... or lose perhaps?

[Nightfire]

How much money will SkyEurope earn inside this time frame... or lose perhaps?

Of course they will earn nothing. This has just bought them yet another one month, that's all.
After that, there will either be yet another extension, or there won't.

Unfortunately, this is how things have become at SkyEurope. :(
Their last chance now is to find some cheap 737 "classics" to rent, and try to resume operations with them.
But I fear that it is probably too late. They just made too many mistakes in the past, and now, finally, the cash has run out.

[Buster the Bear]

SkyEurope`s January passengers drop by 23.5%
16 February 2009

Ailing low-cost carrier Slovakian SkyEurope reported on February 10 that passenger numbers dropped by 23.5 percent in January, compared with the same month of the previous year. The Slovakia-based airline, which is listed on the Vienna stock exchange, has said it would reduce capacity by some 19 per cent during the winter months of 2009. SkyEurope`s operating losses more than doubled to 56.1 million Euro (72.8 million dollars) in the 2007/08 business year running until September, according to preliminary figures published last November.

[eu01]

17.02.2009

SkyEurope Holding AG announces the further postponement of the publication of its annual financial statements for the financial year ended 30 September 2008 as SkyEurope Holding AGs management continues to assess certain material estimates in connection with these annual financial statements.A waiting game?

[davidjohnson6]

eu01 - I thought the 2nd postponement of releasing financial results was to 15 March ?

No idea whether it's a coincidence that this is the same day as the next loan due date

As a *purely specualtive* question, would the formal publication of the accounts for the year as signed off by the auditors showing a large loss necessitate that the relevant aviation regulator take action over the AOC with regards to the airline's financial stability ?

[kingston_toon]

Flew LTN - BTS and BTS - SAW with SkyEurope last week. Both flights were well loaded and on time.

LTN - BTS was on Air Slovakia's OM-ASD with 1 x SkyEurope and 3 x Air Slovakia cabin crew. BTS - SAW was on LY-AWG with a full SkyEurope cabin crew. I assume the latter is from FlyLAL as someone mentioned earlier - does this mean they have two of these now and are they now "owned" by SkyEurope?

Good to see they are still flying... I've always had a soft spot for them.

[anna_list]

Published at the end of last month, covering the period Oct 2008-Dec 2008.

http://www.skyeurope.com/Documents/q1_2009_financial_report_en.pdf

Note in particular the figures for total equity and cash and equivalents, also the comments on page 16 about 'going concern' and the 'post balance sheet events' on page 17, which give details of the redelivery costs incurred.

[racedo]

Position looks bleak unless it can get the extra funding.

Its suppliers have provided extra credit to keep it going and it states there is 10M held by old credit card partner but ultimately a poistion gets reached where suppliers can do no more.

They have a week before finding out what happens to funding.

[davidjohnson6]

Annual audited accounts (previously delayed) and loans both due on Sunday 15 March. It's now the 13 March. AFAIK, the TARGET payment system for euros is open only on weekdays. Further, much of the regulatory apparatus for filing accounts, as well as stock exchange news feeds, go rather quiet at the weekend.

So - anyone heard anything ?

[eu01]

So - anyone heard anything ? Frankly, it's becoming somewhat ridiculous. But here's the answer:15.03.2009

York Global Finance II S.a.r.l. has extended the deadline for the repayment of its EUR 15 million loan granted in December 2007 and its EUR 10 million loan granted in September 2008 to SkyEurope Airlines a.s. to 15 April 2009. Both loans were due for repayment on 15 March 2009 in accordance with the loan agreements as amended.

SkyEurope Holding AG announces the further postponement of the publication of its annual financial statements for the financial year ended 30 September 2008 as SkyEurope Holding AG´s management continues to assess certain material estimates in connection with these annual financial statements. SkyEurope Holding AG's management expects that the audited annual financial statements will be published by 15 April 2009.


Further inquiry note:
SkyEurope Holding AG
Nick Manoudakis, CFO

[captplaystation]

All sounds Greek to me :D : :rolleyes:
standing by for PeterPaul , or should we call you Nick ? :hmm:

[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]

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]

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.

[captplaystation]

Waiting for a robust response ( as usual ) from PeterPaul, but WHY if you had money to invest, would you invest in Sky Europe ? or indeed in ANY airline, WHY ? Beats me. . . :confused:

[Nightfire]

Well, it seemed like a good investment for a couple of years.
A new airline, without any real competitor, offering an attractive product to Central Europe's (at that time) growing middle-class. Starting with a single Embraer 125, going on to an expanding fleet of B.737, and finally with an impressive order of 737-700 aircraft; bases in Poland and in Hungary, it could have really covered quite a network. Motivation among all employees was great, unlike MANY other West-European LowCost-airlines.
Christian Mandl was a young, clever and enthusiastic guy who performed something like the "American Dream" in Slovakia. :ok:

Investing into this company seemed to be a very promising thing to do.

But that was years ago. For a long time now, all that happened was a steady decay of things. They changed their plans so often, even employees couldn't really keep up to date with them.
For example, millions of Euros were invested into Krakow-base, and then they shut it down only a few months later. :ugh:
The people in Budapest-base were promised god and the world - base shut down, despite other announcements.
More often than not, even we pilots were surprised to read a totally new announcement, by coincidence, in a newspaper or on the company's website.

Decisions made by wannabe-trytobe-managers.
Unreliable information from above made it impossible for employees to make any long-term plans for their own lives. Wasting many good opportunities didn't really build up confidence either - there were plenty of suggestions being made by intelligent people, but nobody cared.
Experienced people usually left the company in disappointment after some time, always being replaced by inexperienced new yes-guys. There was one manager, who even quit his job again after less than two weeks - he was then replaced by a lovely sweet young Cabin Attendant. :}
Waste of cash: One example was starting their own ground-handling company and failing badly with it.
Finally the downfall: All they are doing now is to somehow try and make ends meet, looking straight into the abyss.

New 737-NGs are gone, salaries are slashed, no more glorious powerpoint-presentations, no more parties. Welcome to the hang-over.

And management still makes excuses about why this is so (fuel prices one year ago, general economic downturn, blablabla).

So why would somebody still invest?
Either some new investor is very "optimistic" (to use a friendly expression), or it's just money-laundering of some sort (which happens as well).
We shall see. "Fresh capital" is, has been, and will be, the magic word.

[PeterPaul]

Well, I have good news for SkyEurope. Bad news for some people here, it does answer questions, except for the unprecedented spat of money-laundering (can you mention another airline, ever, with same suspicions you have?), shame on you.

There is perhaps some light at the end of the tunnel for SkyEurope (+13.0%), and it may not be the express train coming in the opposite direction - at least some investors think so. Reporting a small but significant 2.7% load factor improvement in Mar-2009, off a steeply reduced traffic base due to its diminished fleet (pax numbers down 39% for the month, year on year), SkyEurope also announced the arrival of a new CCO.

It doesn't take much to move a share price which has sunk as low as SkyEurope's, but there are still clearly some buyers out there who see there may now be some upside. The carrier is offering a large array of cheap fares over Easter, which should bolster its cash flow, as well as giving management a good idea of how things will go from here.
SAS pays price of selling its soul, SkyEurope sees some light, Air France-KLM rises - SHARE WRAP | Centre for Asia Pacific Aviation (http://www.centreforaviation.com/news/2009/04/09/sas-pays-price-of-selling-its-soul-skyeurope-sees-some-light-air-france-klm-rises---share-wrap/page1)

I have insisted in other topics that SkyEurope will outlive competitors, would you take a bet? Probably not. Others do it, in millions of EUR, or in EUR 23 fares. Time to change your mind? Why not be on the winning side? Be rational, look after your interest man! How many more years do you need to be convinced?

[Nightfire]

Time to change your mind?

Any time man, as soon as I see some reason to change it.

Why not be on the winning side? Be rational, look after your interest man! How many more years do you need to be convinced?

I believe I am on a winning side, although there may be many other winning sides for other guys. But that's beside the point, let us not get personal. I am not looking down on you, and I would never call any SkyEuropean a loser, if that is what you mean.
I have no advantage or disadvantage from whichever side of the razor's blade SkyEurope will tip to. Personally, I hate to see it go down.

Having said that, here is my answer to you.

As I said in one of my previous posts further up, it may well happen once again that somebody comes along to pump a few millions into, and save, SkyEurope once more.
That's not "bad luck" for me at all; as I said, I wish all the best to my friends and ex-colleagues who are still working there.

But I don't share your optimism. Even though I admit that SkyEurope has surprised us all until now, I wonder what makes you assume that things are going to get better just now? A few more passengers (thus raising your load-factor), who are paying "23-Euro fares", as you just said?

The truth is, many tickets were sold long in advance, the money has already been spent, and now Skyeurope is going to have to fly passengers to their destinations without being able to pay for the fuel.
So no matter what the load-factor: unless there comes "fresh capital", SkyEurope is in a problem. Is that not so?

You are pointing at an increased load-factor, although you have just lost most of your planes. How many paying passengers do you have, and how much is the profit from that?

Even if you're about to get a few more leased old planes (which are quite available in times like these, I am sure): It is going to leave the fleet of SkyEurope exactly where it was in 2004 and 2005. Which means not only was it all for nothing, the new logo, new uniforms, new aircraft-interior, new corporate image. It also means SkyEurope has made zero-progress even during the best of times in the recent years.
So if Skyeurope doesn't make profit even when the times are good: What are you going to expect when things are going globally bad, like now?

Supposing SkyEurope really does get another credit, what is going to happen? Let me tell you:
Perhaps some changes in management. A new strategy will be announced. The same old phrases of "increased load-factors", some routes cancelled and others opened, and perhaps another base (VIE, BTS or PRG) suddenly being shut down "to concentrate on our market in...".
Some of the usual speeches about "issues in the past which we hope to improve by doing this-and-that!".
And by the end of the year, the cash will be gone again.
It has always been like that, and it won't change now.

Guess what, I'll be happy to book my next London-/Paris- to -Bratislava flight with SkyEurope again, the next time I'm travelling home. No hard feelings. I'm just telling you my honest opinion, which I seem to be sharing with the majority here.

[Bubba_]

Well said Nightfire:ok:! I absolutly agree with you. And again no offense but having a manager from Malév:)... knowing the past of the company seems just like the step of having a big friendly hug with MyAir.
PeterPaul any comment on my posts? It is nice to be waiting for something, but it was the same with the last two applicants willing to invest. I don't have anything against any competition if it is based on a rational and financially stable background. At this point it seems to me that NE managers are sitting around a big barrel and they are getting warm by burning the money inside. If I am wrong I will be among the first ones to appoligize and to admit it.

[davidjohnson6]

ots.at: EANS-Adhoc: SkyEurope Holding AG announces the further extension of York loans, postponement of the publication of its annual financial statements = (http://www.ots.at/presseaussendung.php?schluessel=OTE_20090415_OTE0006&ch=wirtschaft)

Deadling of loans to York and overdue publication date of audited accounts both extended another month to 15 May.

The loan repayment is one thing - essentially between York and SkyEurope. However the repeated deferral of the publication of audited accounts for a company formally list on a major stock exchange (OK - Vienna is not London or NY, but it's a serious outfit) is rather more cause for concern. Sounds like the auditors and Skyeurope's board of directors may have differing opinions on accountancy principles and what should or should not be signed off as giving a fair representation of the company's state.

[James 1077]

Deadling of loans to York and overdue publication date of audited accounts both extended another month to 15 May.

The loan repayment is one thing - essentially between York and SkyEurope. However the repeated deferral of the publication of audited accounts for a company formally list on a major stock exchange (OK - Vienna is not London or NY, but it's a serious outfit) is rather more cause for concern. Sounds like the auditors and Skyeurope's board of directors may have differing opinions on accountancy principles and what should or should not be signed off as giving a fair representation of the company's state.


The two are probably related - if the loans need to be repaid and Sky Europe can't do it then the auditors won't sign off the accounts on a "Going Concern" basis - which effectively means that the auditors can't see Sky Europe being around for another 12 months. The accounting effect is that all of the assets need to be written down in value to the price they are likely to get for them in a "fire-sale".

If the loans are extended then the auditors may be happier to sign Sky Europe off as a going concern and so assets can be recorded at depreciated historical cost as per normal.

Not being a going concern can have a seriously bad effect on your balance sheet!

[boeing boeing]

What is the current Sky Europe fleet ?
Have they got their own 737-300's or are they still using Air Slovakia etc on lease ?
Anyone know what is operating the LTN/PRG ? I am booked on the 15:00 LTN/PRG next Wed 29/4. I do have a Wizzair flight booked the same day, just in case !

[Seljuk22]

ch-aviation.ch:
3 - B737-300
2 - B737-500
4 - B737-700

[DOOBIE]

The LTN/PRG is currently operated by Travel Service with a mixture of their own B738s and the A320s they have on lease from SmartLynx.

[PeterPaul]

boeing boeing
I do have a Wizzair flight booked the same day
You do very well to buy duplicate tickets.

There is a better chance that Wizzair goes bust first. So you have the SkyEurope flight for sure.

Most likely both airlines will be operating in the coming months. In this case, I agree that you prefer to fly with SkyEurope, and the ticket with Wizzair was only a spare.. SkyEurope is a far better airline. With superior service.

Have a nice flight.

[captplaystation]

" There is a better chance that Wizzair goes bust first" :D :rolleyes:

You seem to have some difficulty to accept, that by all normal parameters, Sky is already bust, they are merely concealing it by A - extending their loans repeatedly. & B - Deferring release of their results repeatedly.
I don't dispute that this may well continue for some time, but by any reasonable assessment they ARE already bust. If not, how come so many aircraft were repossessed by the leasing companies ? couldn't pay the bills no ?
Sounds like a reasonable definition of bust to me, can't pay bills, leased assets removed by owner, Oh, and employees paid late repeatedly, and probably not fully.

[DOOBIE]

Further to my post above, the LTN/PRG yesterday was operated by a Smart Wings B735 and it is a Travel Service (Smart Lynx) A320 today.

[Bubba_]

Fact or Fiction Skyeurope's "superior" service:

Last comment from airlinequality.com..
We had our flight Vienna to Amsterdam cancelled with short notice during our holiday. With few other flight options at times suitable to us, we requested a refund - though SkyEurope was very keen to have us take a voucher, but being based in Australia it is unlikely we will be in Europe again in the near future and would never touch this airline again. We have been waiting three months for our refund, with no response to emails, calls to the reservation centre or letters sent. I would strongly advise anyone thinking of using this airline to reconsider. Their service is terrible.

[davidjohnson6]

Bubba - even on the world's finest airlines, it is always possible for a single passenger for things to just go badly wrong and have a terrible experience. Furthermore, I suspect that those who have a reasonable experience probably do not feel the need to write a review. A conclusive opinion as to the merits (or lack) of an airline probably needs rigorous polling of a large number of passengers on a variety of days.

While SkyEurope has a number of significant issues to deal with in the short-term, it is not possible to draw any conclusions from the experience of just one passenger.

[pee]

Anna-aero has just published the latest passenger development data; perhaps this could serve as a sort of comment.
http://www.anna.aero/wp-content/uploads/2009/04/pass-development.png

[Nightfire]

Well, having 12 bases, a fleet of 20 planes, plus another 70 on order is more than SkyEurope ever had, even during their best of times. So much for your attempt to slash out at Wizz.

But let us not talk about passenger-rants; I agree that SkyEurope's service onboard was always very good, and since I've never travelled with W!zz, I don't know them and can't judge on that.

However, warm smiles from the girls and fresh instant-coffee onboard won't save you. Right now, all you should be concerned about is your delayed financial report. Until we all read it, there is nothing new to be discussed about. You better have something good to say in it, not just a pink-painted picture.

Peter Paul, you suggested in your post from 19.April to have a bet.
Do you remember? Well, I would take it, but first I'd like to know with what you are going to pay me after you lose? with the salary that you didn't get?

[TBSC]

10 bases and 23 a/c (just to be too precise). :)

[letovej]

There is a better chance that Wizzair goes bust first. So you have the SkyEurope flight for sure.

PeterPaul, or should we say Jordan Karatzas, do you really believe it yourself and don't you have better things to do then posting this kind of bull on the forum?

[Nightfire]

Best thing is to just ignore PeterPaul. Not worth fighting and getting upset about that personality-coach-talk. What else can he do in his position, anyway. It shows quite clearly how desperate NE is, if you want to view him as a representative of the company.

PeterPaul, just some advice to you: Don't talk too badly against Wizzair! You never know who reads this, and in a while from now you might have to walk up to them very humbly. Save yourself the embarrassment and us the bullsh**.

[Maxiku]

I agree with Nightfire and Bubba.

PeterPaul is obviously associated with the airline and has delusions about it's customer service, it's ability to make a profit and possibly it's ability to survive.

Like Bubba - I also had Sky cancel one of my flights within 48 hours of departure. Since I'd already paid for hotels, car hire and airport parking I was forced to book (at very short notice) a more expensive alternate flight.
Six weeks later (despite written assurances from the airline) there is still no sign of a refund from them.

Also - When I originally requested my refund they insisted that I e-mailed them (in a totally insecure manner) my name, address, credit card holder's address and credit card number to their customer service e-mail address.

When I first saw that mail I was convinced it was a phishing e-mail from Nigeria but a phonecall to their customer services (in Hungary) confirmed that this is their normal way of doing business. Naturally I refused to hand over this info. They already have it from my orginal booking which at least, was made via a secure connection.

So PeterPaul...
- If you are representing Sky - then please can you arrange for my rebate to finally take place.
- If you are not representing Sky - then perhaps the above may make you reconsider your view on the airline.

PS: My alternate flight was via WizzAir - Good service, friendly cabin crew and no problems whatsoever when dealing with them...Take note, SkyEurope!

[legendz]

I only wish that either they end this bull*** really soon or sort their economical situation.

This situation is a Loose-Loose one hands down. It's bad for them that are unable to gain the confidence of those who might be able to still save them and bad for us customers with our money stuck in there and worst of all not knowing what's gonna happen with our reservations (and not only the airline ones, but also the hotel)

I'm sick and tired of this, really hope that all comes to and end, either a good or bad one.

[Maxiku]

Has the Sky finally fallen?

Is was 13th March when I confirmed to Sky that I wanted a refund for the flight they cancelled.

It was 27th March when Sky e-mailed me to say the refund has been approved and was on it's way to me.

Since then - my weekly requests for an update have all been ignored by Sky.
8 weeks later and still no refund and no replies from Sky.

I've phoned them a couple of times during the early weeks but they told me they would only deal with refund queries in writing. (ie: I need to e-mail them so they can ignore me)

My Credit card company have also tried to reach Sky in the last two weeks and failed?

PeterPaul - Are you still out there?

[lpokijuhyt]

Don't expect your money. Apparently, they pay their pilots several months late as well. :}

[Nightfire]

Maxiku, I'm afraid you'll have to stand in the queue... there are "a few more" parties to which SkyEurope owes quite a lot of money.

But I'm sure PeterPaul will reimburse you, since he is so loyal to Skyeurope. :}

[davidjohnson6]

Today is 12 May, and the delayed accounts are due for publication on 15 May. Anyone wanna make a bet that the accounts will be published on 15 May instead of just another 1 month postponement ?

[legendz]

Here we are, again on the 15th ;) Any new on this matter?

[Nightfire]

Well, that was pretty much to be expected. Guess what will happen in June. :hmm:

[davidjohnson6]

For those who missed it, here's the announcement in all its glory...

=> EANS-Adhoc: SkyEurope Holding AG announces the further extension of York loans, postponement of the publication of its annual financial statements <= (http://www.finanznachrichten.de/nachrichten-2009-05/13927386-eans-adhoc-skyeurope-holding-ag-announces-the-further-extension-of-york-loans-postponement-of-the-publication-of-its-annual-financial-statements-007.htm)

[PeterPaul]

legendz
Here we are, again on the 15th Any new on this matter?

No, no news. The fools of this topic have stopped producing
Nightfire
the bullsh**
and
legendz
this bull***


Possibly they are now wiping it off their fa(?)ces, reading the news that passengers are totally ignoring the ugly, and run to book tickets with SkyEurope, while investors continue to back it, adamantly. How pathetic for one or two people writing in a blog with a dozen fake nicknames, all the same couple trying to disguise as a crowd. What a pair of cheaply-bought charlatans.

No news in this topic. The real pilots and passengers have left this topic. Al that remains is...

Don't try to fill in the space below with much more of the above, it is foul-odour.

[captplaystation]

PeterPaul,
Are you familiar with the term we use in English "acting like an Ostrich" ? :rolleyes:
Because you are. :=

[Nightfire]

Peterpaul, I don't know if you're paranoid or something, but I am sure that there are more than "one or two people" who laugh at you. :rolleyes:

[TBSC]

The real pilots and passengers have left this topic.
It is similar like SkyEurope then. :):)

[Telstar]

So Peterpaul, the results? I'm sure there is a reasonable excuse.

[anna_list]

Hi,

You can find the results on the SkyEurope website. Here are a few highlights:

Q2 net loss: EUR 18M (including EUR 3.2M redelivery costs)
Total equity: EUR -97.58M
Cash and cash equivalents: EUR 460,000
Retained losses up to Q2 09: EUR 220.93 M

[F14]

Just read the results, its over. Best of luck to the guys and girls

[racedo]

At the date of these financial statements, material uncertainties exist regarding the Group’s ability to continue as a going concern. These material uncertainties relate to ability of the Group to raise additional financing to meet its short and medium term liquidity needs and to reverse historical operating losses as indicated in the consolidated financial statements.

=======

This little gem pretty much sums up the future.

[davidjohnson6]

Just read the results, its over

F14 - I agree that you would think it's over, but given how NE has been surviving so far, I somehow can't bring myself to admit that the illusion of walking on water has to come to an end.

[Telstar]

How many years can they continue without a profit? They have never made one as far as I know. This seems to be an airline that never needs to make a profit and has been a total commercial failure but always has a willing investor ride in on a White horse at the 11th hour. How can this be?

[ImPlaneCrazy]

So is now the time where we wait for all the creditors to come rushing in and claim back assets?

[strawberriesfield]

PeterPaul has gone awfully quiet :rolleyes:

[davidjohnson6]

PeterPaul has gone awfully quiet

The results came out yesterday - it is possible that PeterPaul has other things to do with his time besides look at PPRuNe... give the guy a few days and he may make another post.

[seventhreedriver]

Welcome back

Mr. Zsolt
B737-300, -500, -700, -800
LTC/TRI/TRE
FOM SkyEurope
God's gift to aviation

All of you guys at SkyEurope, Good luck! You will need it...and this I mean.

[davidjohnson6]

SkyEurope hrozí konkurz | Firmy | ekonomika.sme.sk (http://ekonomika.sme.sk/c/4872087/skyeurope-hrozi-konkurz.html)

Rough summary of the story:
Czech marketing company 'Beyond Interactive' is owed a big pile of cash by NE, and they are now publicly threatening to file a petition for NE's bankruptcy if they don't get paid within a few days. SkyEurope have said they are dealing with the issue.

[captplaystation]

PeterPaul will never believe me, but I find the situation a bit sad and also rather inexplicable. Ryanair and Easy have been very slow to capitalise on the increase in disposable income in the former East (although to be fair Ryanair did go "Polish " when all the Polish who came to the UK could earn big bucks before the pound crashed against the Euro) but the rest of the former East is poorly served.
Wizzair seem to be doing "OK" but not exactly taking over the region, one would have imagined that they, or indeed Sky, had " connections" :hmm: to make more of a go of things ? :confused:

[legendz]

I don't really understand how can they do this bad having in mind that only Wizz is giving them a real competition in this market share.

Just to think that I have 2 importants flights in the 1st week of October:
Lisbon to Prague and Vienna to Lisbon...

In average they warn their customers about flights changing how many days prior to the flight?

[Seljuk22]

May:
passengers: 208,121 -37.5%
load factor: 75.8% +1.0 pp

[Bluebat_CZ]

Hello,

Facts concerning the current situation at Sky Europe:
1) The company still owes its employees some salaries from 09/2008 (now we have 06/2009, so it is over 9 months that the salaries are not fully paid). For the vast majority of flight crews the amounts owed by the company are around 50% from each monthly salary beginning from 09/2008!

2) Salaries for 10/2009 - the same applies as above. To this day the vast majority of the employees have not received the 10/2008 salaries in full (still about 50% owed by the company). The 50% of the 10/2008 salary that was already paid has been paid in the second half of 12/2008.

3) At the initiative of the management, the employees were asked to defer 50% of their 09/2008 and 10/2008 salaries until 03/2009 and 04/2009, respectively. So I have to say, that the employees have voluntarily agreed not to receive the full salaries for 09/2008 and 10/2008 at that time, provided they will receive the deferred amounts in the spring of 2009. Obviously those deferred salaries have not been paid to the employees to this day as agreed. Employees have made the decision (to defer parts of their salaries) back in 2008 when they had absolutely no idea that all of the subsequent salaries will be also deferred against their will and that the deferred payment will not be paid-out to them for as long as 06/2009.

4) Salary for 11/2008 - not paid out at all. Salary for 12/2008 paid in full, sometime at the end of January once the employee unrest and their pressure on the management started to build-up. Hence, we can say that for the months of 11/2008 and 12/2008 on average again only 50% were paid-out.

5) Starting with 01/2009 the company informed its employees that a new payment scheme is being implemented (obviously without even trying to obtain the consent of the employees). The strange scheme consists of the company's attempt to pay-out 50% of the monthly salary of each employee in 4 installments - basically amounting to 1/8th of the salary being paid every week, as the cash flow (passengers pre-paying the tickets for the summer season) permits. The payments arrive on the employee's bank accounts with a relatively high degree of irregularity of +/- several days, sometimes a week is skipped, etc... However, it is true that this scheme allowed a little bit of stabilization and allowed at least a minimum degree of financial predictability in terms of earnings for the employees. Second issue is, that the amounts paid to employees in some cases of the regular cabin-crews amounted to as little as < hundred euros a week.

6) Therefore, those that are hit by the situation the most are the cabin crews, who are forced to live on 1/8th of their salary a week. Payments of per-diems, that form a significant portion of the salaries of the cabin-crews are of course not getting paid for severals moths at a time (last info that I had from last week is that 01/2009 per-diems have not been paid yet).

7) Due to the fact that the company was not fulfilling its financial obligations to its employees many experienced people have left the company, especially the cabin-crews. Unfortunately they had no possibility to take a loan from their parents or the bank to carry-on with their job. The company solved this by hiring new cabin-crews and running them through an accelerated course. Upgrades to Pursers are being made from people, that would otherwise not have a chance to be upgraded considering their relatively loew total experience for a Purser position.

8) Last Wednesday (03-June) the company organized an official ceremonious event here in Prague, during which the latest cabin crew course has been welcomed into the company. I think it is a really nice thing to do for the new employees, but only if it took place for example in the company's office, considering the company's current financial situation. But no, instead it was hosted in one of the most expensive restaurants in Prague's downtown on the Kampa island! So the company claims not to have money to pay the employees, while at the same time it is hosting a party in a very expensive luxury restaurant, sticking to old motto of the CEO (Jason Bitter) "Do not worry, company pays..."...

9) Just to illustrate the level of the salaries issue - some cabin crew employees are owed amounts in the scope of >4.000 Euro/person, while many pilots are owed salaries in the amounts of >30.000 Euso/person! It basically coemes down to the fact, that most of the crews are getting only 50% of their salaries beginning from 09/2008!


Facts concerning the overall situation:
1) Debts wherever one looks. Employee salaries owed for over 9 months of operations; almost 2.5mil Euros owed to the Slovak Government in social security payments the company is required to deduct from the employee salaries; >1mil Euros owed to customers in ticket refunds due to canceled flights and I do not even try to guess the amounts owed to Eurocontrol and to individual airports for the landing and handling fees. Companies that are owed large sums of money by Sky Europe, as well as former employees who are still unpaid, have already started preparing legal steps to send the company into bankruptcy sooner than the management thinks. Articles in the Czech and Slovak media are starting to appear, shedding more light on the company's situation and starting to count the endless amounts of the company's unpaid debts: Veritele uhani SkyEurope, dluzi miliony korun - iDNES.cz / Creditors are hunting-down Sky Europe - being owed millions of Czech Crowns (http://ekonomika.idnes.cz/veritele-uhani-skyeurope-dluzi-miliony-korun-f4k-/ekoakcie.asp?c=A090604_1201519_ekoakcie_pin)

2) The crews are intelligent people, therefore most of them can put 2 and 2 together. Once they did that and open their eyes to the facts and to the behavior of the management, they realize that there is not a chance Sky will survive beyond this summer season without the help of an outside investor. Now tell me who would want to invest in a company with assets of approx. MINUS 100 million Euros. This does not add to the motivation of the crews and the overall mood inside the company is quite dull.

3) I have to admit that the management did a good job in handling the crisis that arose due to the leasing company repossession of 6 NG beginning of this year. However, the airplanes that are slowly replacing the wet-leased ones (following the repossession of 6 NGs by GECAS) are in most cases 20-year old pieces that were scrambled by the company from the desert storage in the US - pieces that were already discarded from the fleet of United Airlines. The company does not even deal with such issues that they still keep the US setup of the on-board systems - everything is in pounds instead in kilograms, including the FMS masses and FUEL gauges. When pilots are used to operate in kilograms on one airplane and in pounds on another one, it does not add to the overall safety levels of operations. Especially with the crews being under s lot of constant stress during the last 9 months of operations - constantly worrying how much of their salary they will receive this time; if they will be able to pay their mortgage; how long will this situation carry on, etc...

4) Mass exodus of qualified crew members - both flight and cabin. In March the company saw a resignation of the PRG Base Chief Captain and the Chief of the Cabin Crews, followed by the resignation of the company's Chief Pilot in April - well, I would not want to have their responsibility for the miss-management of the company on my shoulders either.

[legendz]

Such a nice airline coming down to this, it's really sad and I would only hope that there was anything that a decent management could to to sustain and recover Skyeurope's financial status.

And to do that you'd 1st need to recover the passengers trust, now, how?

[virginblue]

Well, Jason Bitter has some experience clsoing down shop. VBird comes to mind....

[eu01]

Jason Bitter has announced today he would only need some 20 millions euro of a new loan to be able to continue his "success story". Negotiating with three groups of investors, bla bla... Wait and see. Anyway I'm almost sure that the following text:Global Finance II S.a.r.l. has extended the deadline for the repayment of its EUR 15 million loan granted in December 2007 and its EUR 10 million loan granted in September 2008 to SkyEurope Airlines a.s. to 15 June 2009.will be updated once again next Monday, to spread around this message:Global Finance II S.a.r.l. has extended the deadline for the repayment of its EUR 15 million loan granted in December 2007 and its EUR 10 million loan granted in September 2008 to SkyEurope Airlines a.s. to 15 July 2009.

[Nightfire]

It's absolutely incredible, that SkyEurope is even still staggering on.
The old, experienced guys still hanging out there are either heroes, or they are just simply taking it too personal. I must admit that I also loved working for SkyEurope during the better times, often going beyond my obligations, just in order to help.
But we all realize and realized that SkyEurope is not a football-team, to which you may choose to be "loyal until death". In the end, SkyEurope is only a company, by which people earn their money in order to put bread on the table at home.

Management is forsaking all of them now.

In any other company, people would go on strike to demand what is theirs, namely their salaries. Sky-Employees decided to help their company last year, by personally lending money (half a salary) over several months.
I would not even do that for most of my friends! But what happened? They don't even get it paid back, let alone any kind of interest or reward.
"Thankyou, guys. Give more! Or else we all die!"
I'm also deeply disappointed by the safety-breaches from the management. Flying old junk planes, with inexperienced cabin crew and worried pilots (according to the post of Bluebat_CZ) is absolutely crazy.
God prevent SkyEurope literally "going down" in the end!

Maybe it would even be interesting to know, how Mister Fairytale Peterpaul is going to justify all of that. Just for amusement.
Although there is probably nobody laughing anymore. :yuk:

What makes it worse, is that there are no jobs for all the people right now.

Strange situation: No matter what the Sky-pilots decide to do: Anything will only make things worse. Going on strike, sueing the management, or going public, will simply cause everything to collapse. But keeping quiet, praying for a miracle and holding out will not prevent the end either.
You may merely collect a few more stick-hours in the coming weeks (for whatever it's worth).

Hard to say what I would do in that situation. :sad:

[skyeuropecapt]

Bluebat-CZ,

As a captain for skyeurope myself, and having been employed by our Airline for more than 6 years I cant stay silent on a few points you made.

The fact that you are displaying sensitive information about our salaries to the WWW is somehow understandable since we are all struggling with our finances by the burden of reduced salaries. And the figures you mentioned are CORRECT.
I agree the way it was done by management was unacceptable,and that it does
produce some stress within the crews. This restaurant issue is I understand a very big FAUX-PAS,and i have hard time believing it has actually happened even though it did.

What i CANT ACCEPT is that you are giving FALSE information about our aircrafts. (classics).
Yes some of them were parked in the desert, but not more than 2 months.
It hardly qualifies them as junk aircrafts.As based in Prague you are NOT flying them so you have NO IDEA if they are in poor condition or not.

I have flown them since they first arrived, and believe me all, they were well maintained and are flying well.

YOu mentioned the problem with fuel being in Pounds....thats true but the fuel gauges are themselves in pounds so hardly a problem for the fueller...our loadsheet values are given in KGS and CDU entries in Pounds...so when we get the loadsheet we have to make a simple calculation to convert the ZFW into pounds to enter into the CDU,entry which is verified by the other pilot as its done...then fuel on loadsheet is in kgs we just have to check that it is correct compared to our gauges in LBS.
Hardly a problem so please dont insult your colleagues intelligence....

Concerning the pursers being upgraded early..it has happened before,even before our financial problems...i hardly see it as major problem, it happens in other airlines too depending on need.

We all make choices in life, some decided to leave as soon as the problems arose some after and some now..i wish all my colleagues who left the best in their career because they were all great to fly with , and their choice is respected by all.

If we go down, it would have been a great experience for me,as i enjoy flying with my colleagues and I hope our passengers understand that their SKYEUROPE CREWS will NEVER compromise on their safety.
If we decide to come to work, we are going to perform our work to the best of our abilities.

YOU have decided to be UNFIT, if you decide to leave i wont blame you either but PLEASE dont send unfounded info.

I wish you all the best and remember people still working for sky europe may have issues with their salaries and their management but we are still here,not blind,working SAFELY and waiting to see what life will bring...

Safe flying to all.

[wilbury one]

Come on all you ex-Skyeuropeans and "helpful" colleagues, this is getting ridiculous!


"Flying old junk planes"

Come on give me a break! Are we the only airline in the world operating a mixed fleet of NG:s and 300-500:s? The planes are well kept, from major airlines and really nice inside! It´s true that two 300:s have been brought from storage in Arizona, but they had been there TWO months only! Ex United planes, like new inside.
Pounds system, yes, we double check the numbers all the time, what´s the problem?


"with inexperienced cabin crew and worried pilots"

Nobody is worried about the safty of the flying, only that such rumors will bring us down and cause us to loose our jobs, we have extremly professional SA:s who does a great job training our new FA:s, period.

It sure is a rough time now but the only thing we can do is to do our jobs as good as we possibly can. And just hope that former and present colleagues won´t help the media coming up with false horror stories.
Some of us don´t have any other option, as long as we keep going there is always a chance!

-skyeuropecapt beat me to it, well written!

[Nightfire]

Alright, let me say something to that before this turns into a word-fight.

"Flying old junk planes"

Come on give me a break! Are we the only airline in the world operating a mixed fleet of NG:s and 300-500:s? The planes are well kept, from major airlines and really nice inside! It´s true that two 300:s have been brought from storage in Arizona, but they had been there TWO months only! Ex United planes, like new inside.
Pounds system, yes, we double check the numbers all the time, what´s the problem?

It was me who used the word "junk aircraft" and mentioned "worried pilots" and "Inexperienced crew". Not Bluebat_CZ.

I am a former SkyEurope-employee, who left without any hard feelings. The last thing I wish to do is to insult my former colleagues, so I'll explain those expressions.

The aircraft may be well maintained (I assume so if they come from United). They are very old as I know, but to me it wasn't clear that Bluebat actually never flew them. If Bluebat had been more careful with his description of the "discarded" aircraft, I wouldn't have used that term.
I understand the procedure of converting the ZWF on the loadsheet from KG to LBS, and having the 2nd pilot confirming the numbers before entering them into the CDU. However, this IS definitely a maintenance item, to change the software to work with Kilos. And I consider it to be an unsafe practice: Remember the tailstrike of Emirates in Melbourne? It happened after entering a wrong value into the FMC, resulting in false V-speeds. Nobody got hurt, they only wrecked the plane.
Operating a mixed fleet of classics and NGs is no problem, but with different SOPs applying for different planes?
It is not challenging the intelligence of pilots. I am sure that this kind of procedure would not be the case under normal circumstances, neither at SkyEurope nor any other respectable airline. In this case, management is responsible for an avoidable, potentially dangerous threat.
However, it doesn't qualify the aircraft to be referred to as "junk".

Worried pilots: I really do mean that. Is anyone of you not worried by now? Would you say that nobody arrives into the briefing room in the morning being worried, cynic, frustrated, absent-minded, nervous, unrested, angry or indifferent?
And doesn't this have any effect on individual performance? Answer for yourself:
When you arrive at the aircraft, what do you usually talk about to each other? How many times does the subject of your conversation come to personal company-related matters? How often nowadays do you worry more about your own problems, above anything else that the company might say to you?
What do you think to yourself in the morning, when you sit inside the cockpit, having your first cup of coffee?

I don't consider SkyEurope's pilots and aircraft to be unsafe. I have used them myself as a passenger a couple of times in the past, and would still do so today (well, at least it wouldn't be the safety standards I'd worry about, if I were to book a ticket in advance now).

But I would say that management is to blame for avoidable risks. Not due to negligence maybe, but because of financial meltdown.

[TBSC]

They start beautifully just like a well maintained toyota after 2 months in a garage:-).
Except the one which is AOG in VIE since weeks. ;)

[Bluebat_CZ]

To Skyeuropecapt:

I understand that you may feel unhappy about my previous post. However, I stand very firm behind all of my claims. I have not mentioned a single false piece of information!

1) As you have admitted yourself, the information concerning the salaries is all true.

2) The information posted by me concerning the replacement classics was limited to the statement of several facts. I did not elaborate further than those facts:


the airplanes that are slowly replacing the wet-leased ones (following the repossession of 6 NGs by GECAS) are in most cases 20-year old pieces that were scrambled by the company from the desert storage in the US - pieces that were already discarded from the fleet of United Airlines. The company does not even deal with such issues that they still keep the US setup of the on-board systems - everything is in pounds instead in kilograms, including the FMS masses and FUEL gauges. When pilots are used to operate in kilograms on one airplane and in pounds on another one, it does not add to the overall safety levels of operations. Especially with the crews being under s lot of constant stress during the last 9 months of operations - constantly worrying how much of their salary they will receive this time; if they will be able to pay their mortgage; how long will this situation carry on, etc...


As you can see from my post I have not used the word "junk" or "dangerous" or "unsafe". I have merely said that some of them have been pulled out of the desert storage - is this a false statement in your opinion? The fact if I have flown these airplanes or not is completely irrelevant of the facts that I have stated.

As far as the pound system - did I say that the crews are lost and can not cope with it? Did I say anything false? Again, I do not think so. Since you have been flying commercially for a long time, you must be fully aware of the "swiss cheese" concept when it comes to the causes of aircraft accidents. You can not argue your case with anyone, that the pound system used on some Sky Europe airplanes DOES create another POTENTIAL hole in the concept of the safety of the operations. Of course the crews are intelligent people and will be able to cope with it on everyday basis, but in the overall view it does reduce the safety and it is an issue that can be eliminated should there be sufficient will of the management and sufficient finances. It all simply comes down to the fact that statistically there IS an increased potential for error, leading to a potential more serious issue.

The same goes for my claim that the increased stress on board does not help the safety of operations. Again - I am not saying that an airplane is going to crash tomorrow because of this, but it simply and inarguably creates another hole in the swiss-cheese model, which, if lined up with another hole, brings the flight closer to an incident or accident if other factors are involved.

I do not understand your sentence:
YOU have decided to be UNFIT, if you decide to leave i wont blame you either but PLEASE dont send unfounded info.
I have not decided to be UNFIT - I have decided to leave the company at the end of April. I did my share of flying for free, I did participate on the Sept/Oct concessions. I have simply decided that I do not trust the management that they can lead the company out of the crisis. I have realized that I do not like the way the management behaves towards its own employees when they are the ones who basically allowed the company to survive the winter. I have decided that I have had enough of the management's arrogance and lack of communication, etc etc... I could go on.

With all of the above said it does not mean that I have any hard feelings against the people who have stayed. I have spent several wonderful years with the company and have many nice memories. I wish every Sky employee the best - I wish them that their decision to believe in the competence of the management turned out to be a good one in the long run. I do not want to get involved with the company's internal issues - if the employees are receiving salaries or not is none of my business any more.

But at the same time I can not simply allow the management carry on treating the FORMER employees, including myself, in the same way as they are doing now. It is unacceptable, that the company completely stops paying-out even the small installments of owed salaries to its former employees once they leave the company. Former employees do not care what the company needs to pay first and why. Former employees want to be treated in the same way as the current employees - we have given Sky Europe our share of effort and sacrifice as anybody else. Are we bad because we have decided that enough is enough and we left? Do we not deserve to keep on receiving the small salary installments until the company's moral and legal obligations are repaid to us? I do not know how it is in your base (Bratislava I assume?), but there are simply too many former employees to whom the company stopped re-paying their back-log of salaries on the day they have submitted their resignation. Is this fair?

Are you calling my actions unfair even in spite of the fact that I have personally spoken to Jason and kindly asked him to resume repaying the owed salaries to the former employees - I have even discussed an acceptable re-payment plan over a period of time. But how did Jason respond to such requests and proposals? In his own natural way - he simply put his head into the sand just like an ostrich does and never even responded. When the management shows absolutely no effort to try to come to an agreement concerning its legal obligations and completely ignores us, what do you suggest would be a "fair" treatment then? And do not mention filing a law-suit when everyone is aware of the fact, that without an investor the company is not going to be here within 3 months.

The media attention that Sky Europe is now starting to get is not a result of someone going crazy, but merely a logical consequence of the management's behavior and its absolute lack of interest in dealing with its obligations.

Best Regards,

[skyeuropecapt]

Bluebat,

I understand, it has been and it still is a real bad situation for employees.
I wish you all the best in your work.

Regards.

[eu01]

Just as expected :oh:INVESTOR NEWS

SkyEurope Holding AG announces the further extension of York loans

Bratislava/Vienna 15 June 2009 - York Global Finance II S.a.r.l. has extended the deadline for the repayment of its EUR 15 million loan granted in December 2007 and its EUR 10 million loan granted in September 2008 to SkyEurope Airlines a.s. to 15 July 2009. Both loans were due for repayment on 15 June 2009 in accordance with the loan agreements as amended.

[captplaystation]

Like so many things in life, wouldn't it be absolutely fascinating to know the REAL story.
In the meantime, if they want to launder money or whatever it is they have done ,and wish to continue to do , couldn't they at least have the decency to pay, now and retrospectively, the employees who facilitate them in continuing with this charade? or better to have lavicious parties for new CC and welcoming :hmm: Directors

[Bubba_]

Have some patience, they are now, again, in very serious talks with one of the investors;) it is now only question of time..

[virginblue]

SkyEurope has filed for the Slovak version of Chapter 11 insolvency today:

EANS-Adhoc: SkyEurope Holding / Restrukturierungsverfahren der operativen slowakischen Tochtergesellschaft SkyEurope Airlines a.s. - News - FOCUS Online (http://kurse.focus.de/news/EANS-Adhoc-SkyEurope-Holding_id_news_109894157.html)

Sorry, only in German.

[sickBocks]

Full details on SkyEurope website

[Nightfire]

Oh dear, just read it on the news. :(

[TSR2]

From the press release

And it is good for our
employees because it allows us to preserve and protect jobs.

I bet this statement is some comfort to those employees who have not been paid for a while.

[legendz]

In leigh terms what does this translate into in the next quarter?

[172driver]

Seems like this hasn't been picked up here yet, but it looks like we've got the first (at least to my knowledge) 'Chapter 11' airline in Europe. According to reports in Austrian media and also a msg on their own website (http://www.skyeurope.com/en/about-us/update-on-skyeurope-reorganisation.aspx), they have been offered creditor protection during a 'phase of re-organization' under Slovak law. Sounds like some recent changes in bankruptcy legislation are starting to kick in this side of the pond....

[hetfield]

What about

- OLYMPIC
- ALITALA

:confused:

How are they doing?

[sickBocks]

It's in the Airlines section

[Cyrano]

It's interesting to look back at the reasons for postponement of the publication of the annual results, for example on May 15 (http://www.finanznachrichten.de/nachrichten-2009-05/13927386-eans-adhoc-skyeurope-holding-ag-announces-the-further-extension-of-york-loans-postponement-of-the-publication-of-its-annual-financial-statements-007.htm): SkyEurope Holding AG´s management continues to assess certain material estimates in connection with these annual financial statements (thanks to davidjohnson6's earlier post for the link).

In fact, from the annual report released today (PDF) (http://www.skyeurope.com/Documents/annual_report_sky_2009_EN.pdf), we can see (pages 97-98) that already on 24 April their auditors, KPMG, had issued an adverse audit opinion, stating that there were insufficient grounds for considering the company to be a going concern and that the company's valuation of its assets was unjustifiable.

"Assess certain material estimates" is certainly a vague enough way of describing this...