very little to do with brexit actually, more to do with mismanagement, poor forward planning and the problems affecting all small airlines throughout europe.no doubt the Brexiteers will tell us it had nothing to do with uncertainty over Brexit or buying aviation fuel with a very weak pound.
https://www.independent.ie/business/...-37784466.htmlFebruary 5 2019 11:03 AM
German holiday airline Germania collapsed on Tuesday after it failed to secure financing to meet a short-term cash squeeze and said it would cancel all flights immediately.
The insolvency of Germania, which carried around four million passengers each year, follows on from the failure of Germany's second-biggest airline, Air Berlin, in 2017, and underscores the turbulence in the European airlines industry.
Britain's Monarch Airlines and Alitalia have also filed for insolvency in recent years.
Germania, founded in 1986, blamed rising fuel prices, a stronger dollar, delays in integrating new aircraft into its fleet as well as a high number of maintenance services for the cash shortage.
"Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion," Chief Executive Karsten Balke said in a statement.
Germania's 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. It said all flights had been halted overnight after it filed for bankruptcy late on Monday.
Balke thanked the airline's staff and apologised to passengers who had booked directly with the airline who it said would not be entitled to alternative flights.
"The horror for German air travellers continues," said Klaus Mueller, head of the Federation of German Consumer Organisations.
The Federal Association of the German Aviation Industry said airlines, including those belonging to the Lufthansa Group , TUIfly and Condor, would offer stranded Germania passengers special rates to return to Germany.
Europe's largest budget airline Ryanair, which posted its first quarterly loss since 2014 on Monday, said it expected further consolidation in the industry over the next 12-18 months due to overcapacity.
It predicted a further rise in oil prices would put the squeeze on smaller airlines that can't afford to increase their oil price hedging.
Germania's own financial problems emerged at the start of January when it said it was examining several financing options to secure its short-term liquidity needs.
It said on January 19 it had received a commitment for €15m in funding that would secure its medium and long-term future, but at the end of last week it confirmed media reports that it had delayed paying wages.
Air Berlin, which served around 30 million passengers a year filed for insolvency in 2017 and ceased operations. Many of its aircraft were absorbed by bigger rival Lufthansa.
Tax, you silly Dentist economist wannabee
Brexit is the trigger, for the weak UK companies, how can you rejoice over this?
your country is already weak and many small UK companies are suffering, and your anwser is "let them eat cake" and enjoy "Brexit" ?
of course Brexit is not the cause, it's just the last drop that will make the whole ship sinks, and you are looking forward to it?
strange people indeed,
Searching for something unrelated and found this.
https://www.gov.uk/guidance/living-in-germany
Im sure you are up to speed anyway.
From your own article: "Germania, founded in 1986, blamed rising fuel prices, a stronger dollar,"
British Midland Airways Limited are buying the same expensive fuel with a very weak pound, not to mention the effects of a weak pound on it's customers who are largely based in the UK ..a pound much weaker than either the Euro or the Dollar.
Are you able to comprehend?
It seems that you, and a few others are totally unaware of the slow down in global economy.
Blaming everything on Brexit is just too easy for you. While the uncertainty over Brexit may have exacerbated matters, you are too dim to notice that the wealthy north of Europe, as well as the med MS are falling apart at the seams, along with China and the USA.
Are you going to blame global economic collapse on Brexit too?
What a silly little wanker of unspecified origin you are. lol
Chass, you old man, Brexit is only making things worse, and as usual, you missed the point, you poorly educated man
why would you choose to speed up the sinking of your own ship as a matter of principle is just too fucking strange to grasp,
but again I don't lie in a bed full of stinking piss 24 hours a day
the euro has dropped around 15% to the dollar over the past couple of years and airlines hedge their fuel purchasing years in advance.British Midland Airways Limited are buying the same expensive fuel with a very weak pound, not to mention the effects of a weak pound on it's customers who are largely based in the UK ..a pound much weaker than either the Euro or the Dollar.
all the smaller airlines are clinging on by their fingernails right now.
there are so many of them in competition with each other, so of course many will fail. brexit is but a small part of it.
d'fly
Tax, you silly Dentist economist wannabee
d'fly
but we all know you would pay big money to lie in a bed full of stinking piss all day you filthy pig.but again I don't lie in a bed full of stinking piss 24 hours a day
Where I live is no concern of yours yereman druggie.
The invertebrate kids himself that he’s young and smart, but we all know that’s just him telling himself stories. He’s an over confident troll, with a very small brain, and an even smaller imagination.
He can’t even imagine fresh insults, the pathetic little worm.
I can’t wait to see him covered in the dust and rubble when his home country collapses. I’m sure the U.K. will send foreign aid, tents and blankets, to comfort him and his broken countrymen.
You sure bro?
The graph below shows the Euro/Dollar rate for the last 4 years.
The Euro is stronger now that it was 4 years ago.
....note how the Euro strengthens following the Brexit referendum.
Lets take a look at the Pound/Dollar rate over the same period.
The red arrow points to the exact moment the Referendum result was known.
A sheer vertical line in a currency rate graph is almost unheard of barring a nuclear attack or other similar catastrophe.
Note the huge shark bite that comes after, illustrating the worst Pound/Dollar rate in 35 years....
For completeness, lets see how the Pound fared against the Euro over the same period.
....oh dear!
Once more the red arrow pin points the exact moment the referendum result was know, and once more the sheer vertical line.
Correct ....successful businesses work off a 5 year plan( hard numbers ) projected into the future, they might manage a 3 year plan in a pinch.
You might ask yourself how UK companies are expected to project a plan for the remainder of 2019 never mind beyond... what kind of investor is going to touch that steaming pile of excrement? ....is Brexit uncertainty, the shit pound and failing/fleeing UK companies starting to make sense now?
------------
Even the extreme Tory Brexiteer Jacob Rees Moog has moved his company to the EU, his new EU company prospectus listed Brexit as one of the risks, saying it will cause “considerable uncertainty”. Which is the kiss of death for businesses.
As I've just illustrated in hard numbers, Brexit is a huge part of it.
I understood because of the state of flux in a Brexit concordat BMI could not secure future rights intra-EU on potential lucrative routes and without the opportunity to bid for those slots it had trouble in extending credit lines thus precipitating its collapse which might have been staved off otherwise if Brexit had not destroyed its bargaining position.
Revenue, a fluctuating cost base and demand are perennial factors in the airline business, for BMI Brexit was the killer blow.
Of course, to Tax, like the British based motor manufacturers and the British banks exporting billions of £ to EU based subsidiaries and the thousands of EU workers haemorrhaging out of the NHS and the care industry, any current economic trend in Britain is in fact influenced not by Brexit but by a stronger than usual breeze from the Southeast and the early arrival of the Siberian chiffchaff.
^So dum the only retort to hard facts he can manage is a cartoon chicken wearing a bowtie...
NamPik is a retarded chav, don't pay attention
will probably die with Brexit,
Probably....
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