newswatcher
2nd Jul 2001, 17:44
AFX reports:
"Belgium's City Bird SA airline said it is filing this morning for creditor protection at the Brussels commercial court.
The airline is suffering the financial impact of the end of use by Sabena Belgian World Airlines SA of two MD-11 aircraft as well as uncompetitive conditions on the long-haul charter market, it said.
"The procedure started today and fully supported by Thomas Cook is the best solution to allow City Bird charter flights to take place as scheduled," it said.
"City Bird seeks to restructure its activities and focus on the profitable short and medium-haul," it said.
Thomas Cook operates under the Neckermann, Sunsnacks, Pegase and All Seasons brands, it said.
City Bird lost sales of 2.5 bln bfr per year from the end of the Sabena contract as well as a significant profit, it said.
On long-haul charter, it said that while it has low structural costs it cannot compete with fares offered below cost, and sometimes financed by state aid."
"Belgium's City Bird SA airline said it is filing this morning for creditor protection at the Brussels commercial court.
The airline is suffering the financial impact of the end of use by Sabena Belgian World Airlines SA of two MD-11 aircraft as well as uncompetitive conditions on the long-haul charter market, it said.
"The procedure started today and fully supported by Thomas Cook is the best solution to allow City Bird charter flights to take place as scheduled," it said.
"City Bird seeks to restructure its activities and focus on the profitable short and medium-haul," it said.
Thomas Cook operates under the Neckermann, Sunsnacks, Pegase and All Seasons brands, it said.
City Bird lost sales of 2.5 bln bfr per year from the end of the Sabena contract as well as a significant profit, it said.
On long-haul charter, it said that while it has low structural costs it cannot compete with fares offered below cost, and sometimes financed by state aid."