Monday, 30 January 2012

Spanair ceases operations

Spanair A320. Courtesy, Spanair

Barcelona-based Spanair (JK) has ceased operations after reportedly running out of financing options.

A statement on the carrier’s website says it suspended operations on Jan. 28 and advises customers with reservations to contact their credit card company, insurance company or travel agency. “Due to these exceptional circumstances all our flights are canceled,” the statement said.

JK reportedly made the decision to halt operations after being told it would receive no more government-backed loans and talks with Qatar Airways (QR) about potentially taking a stake in Spanair fell through.

Bloomberg reported that a JK spokesman said Qatar (QR) was not interested any more in a business deal.

SAS Group, meanwhile, issued a statement saying that JK’s board of directors had decided to apply for bankruptcy. SAS divested most of its ownership in Spanair in early 2009, but said Friday it had a remaining exposure of about 1.8 billion Swedish krona.

“SAS Group will follow customary procedures as a creditor in the upcoming bankruptcy process,” it said.

JK, a Star Alliance carrier, issued a statement almost exactly a year ago warning that it was in an emergency financial situation.

Source: ATW

No comments:

Post a Comment