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sky europe bankrupt
Posted: 2009-09-02, 2:43 am

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A budget airline which operates routes from the UK has filed for bankruptcy.

All SkyEurope flights have been suspended with immediate effect and a number of rival airlines are offering "rescue offers" to stranded passengers.

Slovakia-based SkyEurope, which flew out of Luton and Manchester, has warned it "may not be possible" to offer refunds to those who booked directly.

But customers who paid more than £100, using a credit card, should be able to claim money back from the card issuer.

Those who had booked the flights as part of a holiday package should be protected by the air travel organisation, Atol

From Luton, SkyEurope flew to Prague in the Czech Republic as well as to the Slovakian destinations of Poprad, Kosice and Bratislava. From Manchester, it flew to Bratislava and Kosice.

"We are still trying to find out just how many Britons are caught up in this," said Frances Tuke, spokeswoman for travel agents group Abta.

"Airline collapses such as this highlight the need for a reform of the regulatory system regarding refunds."

'Cash burn'

SkyEurope which has been struggling to restructure its debt and to cope with falling revenues in the economic downturn, cited the "lack of sufficient interim funding to finance ongoing operations".

Vienna international airport had stopped servicing the airline's departing flights in mid-August after it missed a deadline for paying outstanding debts.

And Prague's airport had said it would not service SkyEurope flights starting Tuesday if it failed to pay what it owed.

The collapse comes as the International Air Transport Association (Iata) said that airlines worldwide were likely to have lost more than $6bn (£3.7bn) in the first half of 2009.

This figure - an average of $1bn a month - is double the amount Iata said in December that airlines would lose during the whole of 2009.

The global recession has had a major impact on the industry, with business and leisure customers cutting back on travel, and companies transporting far less cargo.

Rising oil prices have also made fuel more expensive, "intensifying airline cash burn," Iata said

FROM THE BBC
Re: sky europe bankrupt
Posted: 2009-09-02, 4:26 am

420 Power Kat
Posts: 912
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What a shame! I booked flights from Amsterdam to Prague for 1 Euro + tax a few years ago,,,glad I "seized the day"

Carpe Diem

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Pura Vida
Re: sky europe bankrupt
Posted: 2009-09-02, 11:25 am

fredSupporting Member
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Posts: 2346
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"Amsterdam to Prague for 1 Euro + tax a few years ago"

Guys like you just kill the airline in the long run. They cannot even cover the variable cost to transport you for 1 euro. So the shut down analysis is a no brainer.

Fred
Re: sky europe bankrupt
Posted: 2009-09-03, 12:28 am

420 Power Kat
Posts: 912
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"Guys like you kill..." blah blah?? WTF Fred?

I think Sky Europe had larger problems than me to deal with. I spent a lot of $$ in Prague so I hope one way or another that country benefited from my 1 euro!

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Re: sky europe bankrupt
Posted: 2009-09-03, 12:17 pm

fredSupporting Member
Supporting Member
Posts: 2346
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The 1 euro fare is predatory pricing, plain and simple. You can think about the flight crew not collecting their earned wages when Sky Europe goes belly up.

Regards,
Fred
Re: sky europe bankrupt
Posted: 2009-09-04, 6:03 am

jb*
Posts: 41
Location: US
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Hey, he just took the price they offered. I did the same thing several times via RyanAir.

From an article I read (granted, about 3 yrs ago), in some cases the airlines are offering the ridiculous fares on late flights as they are moving planes to a location needed the next day, where they'll make considerably more on business flights. The mentalty of "get something" for the travel led to it.

That said, the lack of foreplanning or big picture view necessitating that move is free criticism.
Re: sky europe bankrupt
Posted: 2009-09-10, 12:53 am

MagooTooSupporting Member
Supporting Member
Posts: 520
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Fred, just think of the $1 fare being an advertising promotion.

The rest of the cost comes from the advertising budget, and
the result is - or should be - a happy passenger who spreads
the word about what a great airline it is, paying back the
advertising cost handsomely.

Also I think there's something in it for the airline to fly as full
as it can, even if it gives away some of the seats, at least the
traveller is paying the taxes.

Margins in airlines are just soooo tiny, it can't be an easy business
to operate. I'm sure if it was better to fly half-empty (and save
on fuel) there would be no more ultracheap offers.

So, grab those $1 tickets when you can and don't worry you're
damaging their business, you damage them more by staying
home.

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Re: sky europe bankrupt
Posted: 2009-09-15, 4:06 pm

420 Power Kat
Posts: 912
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Thank you Magootoo for clarifying this for Fred

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