The fall of the dominoes

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Viewing 15 posts - 211 through 225 (of 241 total)

  • SimonS1
    Participant

    AMcWhirter
    Participant

    Sounds like Montenegro Airlines is a gonner.

    Indeed Simon. I have listed more details above and the post “is awaiting moderation”.


    AMcWhirter
    Participant

    China’s Hainan Airlines (which had begun expansion into the UK and mainland Europe in recent times) looks like it will enter bankruptcy.

    https://www.ch-aviation.com/portal/news/100035-creditors-file-for-hna-groups-bankruptcy?utm_source=dlvr.it&utm_medium=twitter

    As recently as 2019 this airline was serving Dublin and Edinburgh. Hainan Airlines even had fifth-freedom rights on the Dublin-Edinburgh sector.

    The airline ceased Edinburgh at the end of the 2019 Festival.


    transtraxman
    Participant

    Hainan Airlines and Hong Kong Airlines look to be in trouble as their parent, the HNA Group, files for bankruptcy. In the wide ranging conglomerate are included the airline caterer Gategroup and ground handler Swissport. It is reported that before the COVID pandemic pushed the group over the edge, it had accumulated a debt of $110 billion.
    “Chinese travel conglomerate HNA Group faces bankruptcy”, (Business Traveller, 31-1-21)

    *** https://www.businesstraveller.com/business-travel/2021/01/31/chinese-travel-conglomerate-hna-group-faces-bankruptcy/

    “Creditors file for HNA Group’s bankruptcy”, (ch-aviation, 29-1-31)
    In this report it says that the two airlines will continue to fly, as will the other activities. We will just have to wait to see in which form they do.No doubt they will be slimmed down.

    *** https://www.ch-aviation.com/portal/news/100035-creditors-file-for-hna-groups-bankruptcy

    “HNA Group files for Bankruptcy”, (Airways Magazine, 29-1-31)
    The article also states that all activities will continue. It also lists some of the most important investments made by the group in the airline industry. These include stakes in, lessor Avolon, Virgin Australia, Azul (Brazil), Comair and TAP.

    *** https://airwaysmag.com/airlines/hna-group-files-for-bankruptcy/

    1 user thanked author for this post.

    cwoodward
    Participant

    As I understand the situation very little has actually changed from that existing for the past couple of years except the actual declaration of ‘bankruptcy’ as the group has been insolvent and selling assets for the past 3 years or so.
    The groups several airlines which includes Hong Kong Airlines ( not Air Hong Kong which is a Cathay subsidiary) are still flying and will continue to do so until such time as they are sold, closed, or the group manages to sell enough of its many non airline assets to become solvent and hang on to the airlines or at least some of the many it still controls .
    Although Hong Kong Airlines under the stewardship of HNA has always been loss making apart from some fudged accounting a few years back that falsely indicated otherwise it will probably survive and/or be sold as was Hong Kong Express Airlines (to Cathay). Perhaps in part because that the Chinese Government may not want to allow those ‘foreign dogs’ the Swire Group, with 3 HK based airlines total control of Hong Kong based commercial aviation.

    HNA is a rather interesting saga of a small be successful private airline, Hainan Airlines expanding at meteoric speed with borrowed money buying everything in sight including Swissport, Ingram Micro for $6.0 billion, a controlling interest in Deutsche Bank, Radisson Hotels, several other hotel and resort groups, airline caters and large shareholdings in airports and on and on all with borrowed money from Chinese banks.
    In 2017 the Chinese Government became concerned that the runaway borrowing of in excess of US70 billion was threatening the banking system and after an embezzlement involving over a billion $ they stepped in, increasing took control and began a sell down of the assets in an effort to service what had become the unserviceable debt. HNA is effectively now controlled by the government with the founders being finally outed last week.


    transtraxman
    Participant

    Thanks to CAPA of today (5-2-21) they provide a list of what they consider a relatively low number of airline bankruptcies in 2020.

    I also question whether they all can be considered real bankruptcies.

    Austral was merged into Aerolineas Argentinas to form a bigger airline. Cathay Dragon has been merged into Cathay Pacific for the same reason. However, since Cathay Pacific had taken over HK Express (formerly Hong Kong Express)to be its LCC airline then undoubtedly some routes would be passed to it. Lufthansa´s Eurowings subsidiary is really the consolidation of its operations together with those of Germanwings. Most of the others on the list I know nothing about.

    https://centreforaviation.com/analysis/reports/only-a-few-airlines-collapsed-in-2020-550663


    transtraxman
    Participant

    “LAN Argentina Ceases Operations After 15 Years”, (Simple Flying, 8-2-21)

    LAN Argentina Ceases Operations After 15 Years

    This not about competition but elimination. Kirchnerism is a form of left wing autartik populism derived from Peronism, developed by Nestor Kirchner and his wife Cristina Fernandez.

    Basically it is an anti-neoliberal attitude opposing the (liberal) basis of the policies being operated before that family coming to power. The liberal policies opened the domestic Argentinian airline market to foreign airlines. As being part of the biggest airline in South America, LATAM, LAN Argentina has always been in the sights of the Kirchner government who want to protect Aerolineas Argentinas at all costs. So everything has been done to subsidise AA while everything was done to stop LATAM restarting after it closed temporarily in early 2020 because of the pandemic.

    Now the airline market in Argentina has dropped to about 20% of what it was before the pandemic. Of that 20%, 80% is dominated by Aerolineas (and its merged partner Austral). The remaining competitors Flybondo and Jetsmart are too small and too weak to pose a threat to AA. So now that Lan Argentina has been eliminated there is no danger, for the government, to see it bounce back to prominence when the pandemic restrictions are lifted.

    “LATAM Argentina Suspends Operations Until Further Notice”, (Simple Flying, 17-6-20)

    LATAM Argentina Suspends Operations Until Further Notice

    “LAN Argentina, la filial local de Latam, anunció el cese definitivo de sus actividades en el país”, (Infobae, 6-2-21)

    https://www.infobae.com/economia/2021/02/06/lan-argentina-la-filial-local-de-latam-anuncio-el-cese-definitivo-de-sus-actividades-en-el-pais/


    AMcWhirter
    Participant

    Looks as though Air Namibia is the next casualty.

    Management has issued the following statement to say that as from today (February 11) all flight operations are cancelled with all aircraft returning to base.

    Its reservations system is closed.


    transtraxman
    Participant

    It looks like CSA and its parent Smartwings are in trouble.

    “Czechia’s CSA in urgent need of cash after two ATRs seized”, (ch-aviation. 10-2-21)

    “Smartwings Saw A 90% Drop In Revenue During 2020”, (Simple Flying, 15-1-21)

    Smartwings Saw A 90% Drop In Revenue During 2020

    Will they be pushed into the arms of LOT, to add to LOT´s operations in Budapest?
    “Why LOT Polish Could Be Eying A Base In Prague”, (Simple Flying, 28-09-20)

    Why LOT Polish Could Be Eying A Base In Prague

    We live in interesting, dynamic times.


    transtraxman
    Participant

    This was a previously announced bankruptcy – as I indicated here 12th February last. Saturday 27th Feb. is the limit. CSA¨s parent group – Smartwings will not save the airline but will look after its own interests by applying for state funds. Will it be successful, who knows?

    This, of course, opens the door to LOT to run long haul flights from Prague as I also mentioned in my piece here on 12 Feb.

    “Czech Airlines Intends To Lay Off All 430 Members Of Staff,” (Simple Flying, 24-02-21)

    Czech Airlines Intends To Lay Off All 430 Members Of Staff


    transtraxman
    Participant

    “Czech Airlines Seeks Reorganization To Save Company,” (Simple Flying, 26-2-21)
    CSA lays off all its staff but its parent looks to save the group by merging CSA into Smartwings.
    CSA,s drop in revenue is 80 per cent while Smartwings is 90 per cent. These do not seem to the figures of a heathly operation. Maybe this is a process sponsored by the Czech government while it is still negotiating the creation of a strong Central European airline (as stated in the article of November last shown below).

    Czech Airlines Seeks Reorganization To Save Company

    The base of Smartwings is in Czechia but it also has subsidiaries in Slovakia, Poland, Germany and Hungary. This makes it the perfect vehicle to join LOT in the proposed Central European airline. As I have said in earlier posts LOT is filling in or wants to fill in the gaps for long-haul travel in Hungary and Czechia as well as from its base in Poland. This is an idea that has already been mooted.
    “Will LOT Polish Create A Large Hub In Prague?” (Simple Flying, 13-11-20)

    Will LOT Polish Create A Large Hub In Prague?

    We will have to wait and see.


    AMcWhirter
    Participant

    Slovenia’s Adria Airways might return under a new name of SouthEast Airlines.

    According to reports it’s going to be started by a former A320 captain who used to work for Adria Airways.

    SouthEast Airlines is currently negotiating for the lease of two 180-seat A320s.

    1 user thanked author for this post.

    AMcWhirter
    Participant

    As noted above by “transtraxman” Czech Airlines (CSA) is in financial difficulty.

    CSA is one of Europe’s oldest airlines. It was founded on October 6 in 1923.

    There was a time when it operated services to many UK airports but it failed to compete with the low-cost carriers who capitalised on the growing leisure traffic between the UK and Prague.

    On March 10 The Municipal Court in Prague declared CSA bankrupt.


    DavidSmith2
    Participant

    Slovenia’s Adria Airways might return under a new name of SouthEast Airlines.

    According to reports it’s going to be started by a former A320 captain who used to work for Adria Airways.

    SouthEast Airlines is currently negotiating for the lease of two 180-seat A320s.

    I really hope that the pilot concerned is the famous ‘Captain Sosic’ (pronounced in its English approximation as ‘Captain Sausage’). He was a very good pilot in all the years I was flying with Adria, and always at the door to say goodbye when we de-planed.

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