Germania in financial difficulties
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Joined: Mar 2013
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From: Netherlands
Germania in financial difficulties
According to Aero Telegraph, German airline Germania is in financial difficulties. I quote:
“The European aviation industry has changed in the recent time”: With these words, the latest press release of the German airline Germania, which she released on Tuesday, “current events” begins. This appears in the message, then continue below: Germania needs money in the short term.
As a reason for financial problems is stated in the notice, among other things, the “massive fuel price increases over the summer of last year while depreciation of the Euro against the US Dollar”; it also “significant delays in the Acquisition of aircraft, as well as an exceptionally high number of technical services to our fleet”.
During the flight operation there is, however, no limitations. All Germania flights are held accordingly to plan.
Germania is considering, apparently, also a for sale
As the industry portal “Aero Telegraph” reported, was Germania shortly before the turn of the year in acute financial difficulties. Up to 27. December have used the German airline 20 million euros, to be able to fly further, according to the Portal, relying on several independent and consistent sources.
Therefore, it is no longer just a short-term funding gap: a sale of the whole of the Germania group in part or as a Whole, according to “Aero Telegraph” a current topic. However, the search for new shareholders had been unsuccessful.
“The European aviation industry has changed in the recent time”: With these words, the latest press release of the German airline Germania, which she released on Tuesday, “current events” begins. This appears in the message, then continue below: Germania needs money in the short term.
As a reason for financial problems is stated in the notice, among other things, the “massive fuel price increases over the summer of last year while depreciation of the Euro against the US Dollar”; it also “significant delays in the Acquisition of aircraft, as well as an exceptionally high number of technical services to our fleet”.
During the flight operation there is, however, no limitations. All Germania flights are held accordingly to plan.
Germania is considering, apparently, also a for sale
As the industry portal “Aero Telegraph” reported, was Germania shortly before the turn of the year in acute financial difficulties. Up to 27. December have used the German airline 20 million euros, to be able to fly further, according to the Portal, relying on several independent and consistent sources.
Therefore, it is no longer just a short-term funding gap: a sale of the whole of the Germania group in part or as a Whole, according to “Aero Telegraph” a current topic. However, the search for new shareholders had been unsuccessful.
Joined: Feb 2008
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From: UK
Shame - always thought they were a nice little airline - seems almost all of the venerable and vulnerable older charter airlines are going the same way as Monarch - very sad - hope they survive, thought they were very popular with their niche UK IT flights with some UK bases.
I think Germania is possibly one of the last remaining original private owned IT holiday charter airline left in Europe (they has been around for over 40 years)
They expanded in recent years into Switzerland and Bulgaria ops plus Germania decided to sell its Boeing 737s and rely on an "all Airbus" fleet, the Boeing 737-700 will be replaced by the end summer 2019
In 2016, Germania had ordered 25 A320 Neo and secured an option for another ten aircraft of the same type. First services due for 2020.
I think Germania is possibly one of the last remaining original private owned IT holiday charter airline left in Europe (they has been around for over 40 years)
They expanded in recent years into Switzerland and Bulgaria ops plus Germania decided to sell its Boeing 737s and rely on an "all Airbus" fleet, the Boeing 737-700 will be replaced by the end summer 2019
In 2016, Germania had ordered 25 A320 Neo and secured an option for another ten aircraft of the same type. First services due for 2020.
Joined: Aug 2002
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From: Up north
Management released update last night that short term financing has been secured and things seem to be ok for for now. I say “for now” as the question remains, why are they in this financial situation after an over all busy summer (for all airlines)? Business model not working? What happens when / if oil goes up towards $85-90 and stays there?
CP
CP
Joined: Feb 2008
Posts: 881
Likes: 68
From: UK
Management released update last night that short term financing has been secured and things seem to be ok for for now. I say “for now” as the question remains, why are they in this financial situation after an over all busy summer (for all airlines)? Business model not working? What happens when / if oil goes up towards $85-90 and stays there?
CP
CP
Seems Germania pulled out of the UK bases in most despite being popular with pax and tour operators alike. Seems alot of UK work has gone to Polish Enter Air.
As for business model again a foremost charter holiday airline fights to now compete with Lo-co operators - they have also split the company into Swiss and Bulgaria operations with separate company names Germania Flug AG and Bulgarian Eagle,
Joined: Feb 2001
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From: Europe
I suggest you tell this to Southwest who operating just 513 (Five Hundred and Thirteen) 737-700s and consistently have one of the highest profit margins in aviation. With Germania it is all about half of the fleet parked during the winter generating no revenue and competition with large Locos causing low ticket prices.
Joined: Feb 2008
Posts: 881
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From: UK
I suggest you tell this to Southwest who operating just 513 (Five Hundred and Thirteen) 737-700s and consistently have one of the highest profit margins in aviation. With Germania it is all about half of the fleet parked during the winter generating no revenue and competition with large Locos causing low ticket prices.
To have winter 'lows' has always been the bug bear of the IT flight industry - make hay in the summers whilst you can was the old adage
As for the 737-700 - GMI is not SW
So to have an older somewhat orphan fleet in between more economical Airbus 319/321 will of course create higher costs in both MX/crewing and ops - hence these are all going this year
Joined: May 2004
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From: Somewhere in time
Joined: Mar 2004
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From: schermoney and left front seat
Only half a speed-brake
Joined: Apr 2003
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From: Commuting not home
Pay to upgrade as well. The customers are clueless, though admittedly the brand had a nice zing to it at some places.
https://aviation-safety.net/wikibase/wiki.php?id=203097
https://aviation-safety.net/wikibase/wiki.php?id=203097
Joined: Feb 2008
Posts: 881
Likes: 68
From: UK
So Germany's last private long established holiday airline future looks bleak, started life in the 70's as SAT with Caravelles -
Is there any one else now left in Europe?
Monarch was the last in the UK....We have Titan but not quite the same although they do quite a few IT flights of their own
Is there any one else now left in Europe?
Monarch was the last in the UK....We have Titan but not quite the same although they do quite a few IT flights of their own
Last edited by rog747; 3rd February 2019 at 17:57.
Joined: May 2006
Posts: 911
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From: FL510
Nothing new really, confirming salaries haven't been paid and AOC might be pulled as early as tomorrow:
https://www.handelsblatt.com/unterne.../23937878.html
https://www.handelsblatt.com/unterne.../23937878.html