SkyEurope
Encyclopedia
SkyEurope Airlines was a low-cost airline headquartered in Bratislava
, with its main base at M. R. Štefánik Airport
(BTS) in Bratislava, Slovakia
, and another base in Prague
. The carrier filed for bankruptcy on 31 August 2009 and suspended all flights on 1 September 2009. The airline operated short-haul scheduled and charter passenger services.
According to a survey by Skytrax
Research of London between August 2007 and July 2008, SkyEurope was the best low-cost airline in Eastern Europe and 3rd best low-cost airline in Europe.
On 22 June 2009, the airline announced it had been granted creditor protection while it restructured its debts. However, this did not protect the airline from announcing bankruptcy on 31 August 2009 and cancelling all flights immediately.
, ABN AMRO
and EU funds. Although some criticized the decision to base an airline in Bratislava, Mandl saw the effect that the low cost carriers were having in Western Europe and envisioned it going a step further with a low-cost carrier in a low cost country. Mandl and Skowronek were aware of the catchment area of Bratislava Airport with the airport being located within a one-hour drive of Vienna
, Brno
and Győr
and a catchment area
of four countries: (Austria
, Hungary
, the Czech Republic
and Slovakia
).
On 27 September 2005, the airline went public on the Vienna and Warsaw stock exchanges. The initial public offering
price was 6 EUR
, valuing the company at 120 million euro
. The IPO on the Vienna
and Warsaw
stock exchanges was the first by a central European low-cost carrier and the first by any Slovak company. In the following weeks, share price decreased to 5 EUR/share. On 10 November 2005, investment bank CA-IB, member of HVB Group, issued a buy recommendation with target price 6.5 EUR. The bank assumed that first-mover advantage
, a term often used during the previous dot-com bubble
, would "provide competitive edge".
In 2006, SkyEurope announced it would cut ticket prices to minus 10 koruna, claiming to become the first airline that pays people for flying with it. The advertised negative price did not include fees charged to the passenger.
2007 marked a year of growth and change for SkyEurope. The airline opened a base at Vienna International Airport
in March 2007, placing two new 737-700s operating sixteen routes. In October 2007, SkyEurope closed its hubs in Kraków
and Budapest, thus reallocating its aircraft to the hubs in Prague and Vienna.
In 2008, SkyEurope entered into a partnership with České dráhy
creating the CD Sky alliance whereby SkyEurope tickets would be sold for a fixed price at railway stations in Brno
and Prague
.
In October - December 2008 SkyEurope transported 726,656 passengers, bringing the 12-month passenger total to 3.577 million. Its major Central European competitor Wizz Air
claims to have carried 5.8 million passengers in 2008.
The company's last CEO (acting) was Nick Manoudakis, who replaced Jason Bitter after his sudden departure from the airline - to staff and business partners, Bitter appeared as "a captain who escapes a sinking boat". Members of the Supervisory board were its Chairman Iordanis Karatzas (since 1 October 2006), Jeremy Blank (since 1 October 2006), Christophe Aurand (since 1 October 2006, works as CEO of York UK Advisors), Hans Källenius (re-elected 30 March 2007, represents minority shareholders) and Josef In-Albon (since 30 March 2007).
to hedge fund York Global Finance II, due on 15 July 2009.
On 8 January 2009, leasing company GECAS ordered SkyEurope to return six Boeing
aircraft due to financial problems.
On 23 June 2009, SkyEurope went into administration having been granted protection from its creditors by the district court in Bratislava
.
On 11 August 2009, SkyEurope was not allowed to fly into Vienna International Airport
due to unpaid landing fees. Flights were handled at Bratislava Airport instead.
SkyEurope filed opening of bankruptcy proceedings on 31 August 2009. All flights were suspended with immediate effect on 1 September 2009.
airline Ryanair
announced on 1 September 2009, that they launched rescue fares from Bratislava
to Alicante
, Barcelona
(Girona), Brussels
(Charleroi), Rome
(Ciampino), Liverpool
and London
(Stansted). Flights were bookable until 20 September 2009 and certain flights till 17 December 2009. All flights were sold at a price of €25, one way, taxes and charges included.
Malev Hungarian Airlines
also accepted people holding SkyEurope tickets on their flights for a discounted price. Malev was offering one-way travel options to a total of 12 cities for all those who held a SkyEurope air ticket and were unable to board their flight because of the bankruptcy proceedings launched against the company. The one-way air tickets were priced from €49.
Wizz Air
also announced rescue flights for passengers stranded at Prague
to Amsterdam
, Bari
, Bourgas, Brussels
, Copenhagen
, London
(Luton), Milan
(Bergamo), Naples
, Paris
(Orly), Rome
(Fiumicino), Thessaloniki
and Venice
(Treviso) and from Bratislava
to Rome
. Flights were bookable until 15 September 2009 with certain flights available till 26 March 2010 for a total fee of €30 one way.
Also Blue Air
offered some rescue flights for passengers stranded in Bucharest
to Vienna
. The extra fee was €60
with liabilities two times higher than assets. Shares fell from its IPO
level of 6 euro per share to a mere 20 cents per share at the end of January 2009. On 30 September 2008, SkyEurope had overdue debt one million EUR on social insurance
of its employees. The overdue debt gradually increased to €3.1 million at the end of June 2009. At 31 March, SkyEurope was in technical default on its loan from Bank of Scotland
.
According to released Preliminary results for FY 2008, "material uncertainties exist regarding the ability of SkyEurope Holding to continue as going concern
". The company failed to publish audited results for financial year 2008 on 30 January 2009, management stated it expects the statements will be published by 17 February 2009 at the latest. On 17 February, SkyEurope announced further postponement, its management expects the audited results will be published by 15 March. On 15 March, SkyEurope announced a third postponement, its management expects the audited results for FY 2008 will be published by 15 April.
In June 2009, in an effort to avoid bankruptcy, SkyEurope announced a restructuring of the company and received bankruptcy protection from the Slovak courts (valid in the whole European Union). However, this failed and on 1 September 2009, the airline went into bankruptcy. In March 2010 liabilities were estimated up to 180 million Euro and assets less than 6 million Euro (including 0,5 million of cash).
Before the IPO, the largest shareholders were East Capital funds (16.72), EBRD (16.03), Christian Mandl (8.53), Peter Struhár (8.31), Alain Skowronek (8.19), DWS funds (7.79), GLG funds (7.17), Griffin funds (7.04), Euroventures Danube (6.68) and Foundation (6.39). Other investors held the remaining 7.15 share.
reported the airline cancelled hundreds of already booked flights from Prague.
The SkyEurope fleet consisted of the following aircraft (at 1 September 2009):
In 2005 SkyEurope and Boeing
finalized the order for four Boeing Next-Generation 737-700s
worth US$220 million. The order includes purchase rights for up to 16 additional airplanes. This order followed
SkyEurope's order with leasing company GECAS for 12 Boeing Next-Generation 737s.
In April 2007, SkyEurope purchased an additional five jets. SkyEurope had an option to order six more jets at the price set in a 2005 deal with Boeing to buy as many as 32 planes by 2011.
At the end of FY 2008, SkyEurope had agreements with GECAS and Dubai Aerospace Enterprise
for the operating lease of twelve Boeing 737 aircraft. At 30 September 2008, the Company failed to comply with stipulated financial covenants, such as liquidity and net worth
thresholds. As a result, an event of default would allow lessors to terminate the leases with immediate effect and either claim damages
and/or require immediate redelivery of the aircraft. On 24 November 2008, SkyEurope received a default notice from GECAS, as a result of late lease payments. On 9 January 2009, GECAS terminated the lease of six aircraft and ordered SkyEurope to immediately return the 737s. On that day, several SkyEurope flights were delayed up to seven hours. Three additional aircraft were returned to the lessor on 5 January 2009.
The airline operated four Boeing 737-700s
aircraft., two ex-FlyLal
Boeing 737-500 aircraft (on dry-lease from Avia Asset Management), two ex-United Boeing 737-300 and two Air Slovakia Boeing 737-300 (both on dry-lease). SkyEurope also used other airlines for its flights, mainly Air Slovakia
, and Travel Service
.
programme, SkyEurope Delights; in the programme food was sold for purchase.
Bratislava
Bratislava is the capital of Slovakia and, with a population of about 431,000, also the country's largest city. Bratislava is in southwestern Slovakia on both banks of the Danube River. Bordering Austria and Hungary, it is the only national capital that borders two independent countries.Bratislava...
, with its main base at M. R. Štefánik Airport
M. R. Štefánik Airport
-Cargo airlines:-Charter airlines:winter 2011/12 list-VIP and other operators:*ABS Jets – base*Tatra Jet – focus city*OPERA JET – base*VR Jet – base...
(BTS) in Bratislava, Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
, and another base in Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
. The carrier filed for bankruptcy on 31 August 2009 and suspended all flights on 1 September 2009. The airline operated short-haul scheduled and charter passenger services.
According to a survey by Skytrax
Skytrax
Skytrax is a United Kingdom-based consultancy, the public face of Inflight Research Services, which has the largest airline and airport review and ranking site. It conducts research for commercial airlines...
Research of London between August 2007 and July 2008, SkyEurope was the best low-cost airline in Eastern Europe and 3rd best low-cost airline in Europe.
On 22 June 2009, the airline announced it had been granted creditor protection while it restructured its debts. However, this did not protect the airline from announcing bankruptcy on 31 August 2009 and cancelling all flights immediately.
History
SkyEurope was established in November 2001 and started operations on 13 February 2002 (domestic flight Bratislava-Kosice operated with 30 seat turboprop Embraer 120 ER Brasilia). It was founded by Alain Skowronek (Chairman) and Christian Mandl (Chief Executive) and financed by EBRDEuropean Bank for Reconstruction and Development
Founded in 1991, the European Bank for Reconstruction and Development uses the tools of investment to help build market economies and democracies in 30 countries from central Europe to central Asia. Its mission was to support the formerly communist countries in the process of establishing their...
, ABN AMRO
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
and EU funds. Although some criticized the decision to base an airline in Bratislava, Mandl saw the effect that the low cost carriers were having in Western Europe and envisioned it going a step further with a low-cost carrier in a low cost country. Mandl and Skowronek were aware of the catchment area of Bratislava Airport with the airport being located within a one-hour drive of Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Brno
Brno
Brno by population and area is the second largest city in the Czech Republic, the largest Moravian city, and the historical capital city of the Margraviate of Moravia. Brno is the administrative centre of the South Moravian Region where it forms a separate district Brno-City District...
and Győr
Gyor
-Climate:-Main sights:The ancient core of the city is Káptalan Hill at the confluence of three rivers: the Danube, Rába and Rábca. Püspökvár, the residence of Győr’s bishops can be easily recognised by its incomplete tower. Győr’s oldest buildings are the 13th-century dwelling tower and the...
and a catchment area
Catchment area (human geography)
In human geography, a catchment area is the area and population from which a city or individual service attracts visitors or customers. For example, a school catchment area is the geographic area from which students are eligible to attend a local school...
of four countries: (Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
).
On 27 September 2005, the airline went public on the Vienna and Warsaw stock exchanges. The initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
price was 6 EUR
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
, valuing the company at 120 million euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
. The IPO on the Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
and Warsaw
Warsaw
Warsaw is the capital and largest city of Poland. It is located on the Vistula River, roughly from the Baltic Sea and from the Carpathian Mountains. Its population in 2010 was estimated at 1,716,855 residents with a greater metropolitan area of 2,631,902 residents, making Warsaw the 10th most...
stock exchanges was the first by a central European low-cost carrier and the first by any Slovak company. In the following weeks, share price decreased to 5 EUR/share. On 10 November 2005, investment bank CA-IB, member of HVB Group, issued a buy recommendation with target price 6.5 EUR. The bank assumed that first-mover advantage
First-mover advantage
In marketing, first-mover advantage or FMA is the advantage gained by the initial significant occupant of a market segment. It may be referred to as Technological Leadership. This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able...
, a term often used during the previous dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
, would "provide competitive edge".
In 2006, SkyEurope announced it would cut ticket prices to minus 10 koruna, claiming to become the first airline that pays people for flying with it. The advertised negative price did not include fees charged to the passenger.
2007 marked a year of growth and change for SkyEurope. The airline opened a base at Vienna International Airport
Vienna International Airport
Vienna International Airport , located in Schwechat and southeast of central Vienna, is the busiest and biggest airport in Austria. It is often referred to as Schwechat, the name of the county it is in. The airport is capable of handling wide-body aircraft such as the Boeing 747 and Airbus A340...
in March 2007, placing two new 737-700s operating sixteen routes. In October 2007, SkyEurope closed its hubs in Kraków
Kraków
Kraków also Krakow, or Cracow , is the second largest and one of the oldest cities in Poland. Situated on the Vistula River in the Lesser Poland region, the city dates back to the 7th century. Kraków has traditionally been one of the leading centres of Polish academic, cultural, and artistic life...
and Budapest, thus reallocating its aircraft to the hubs in Prague and Vienna.
In 2008, SkyEurope entered into a partnership with České dráhy
Ceské dráhy
České dráhy or Czech Railways is the main railway operator of the Czech Republic. In 2010 its consolidated revenues reached CZK 41.0 bn...
creating the CD Sky alliance whereby SkyEurope tickets would be sold for a fixed price at railway stations in Brno
Brno
Brno by population and area is the second largest city in the Czech Republic, the largest Moravian city, and the historical capital city of the Margraviate of Moravia. Brno is the administrative centre of the South Moravian Region where it forms a separate district Brno-City District...
and Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
.
In October - December 2008 SkyEurope transported 726,656 passengers, bringing the 12-month passenger total to 3.577 million. Its major Central European competitor Wizz Air
Wizz Air
Wizz Air Hungary Légiközlekedési Kft. is a Hungarian low-cost airline with headquarters in the Airport Business Park C2 in Vecsés, close to Budapest Ferihegy International Airport, Hungary. The airline typically uses secondary airports serving many cities across Europe.- History :The airline was...
claims to have carried 5.8 million passengers in 2008.
Final months
The loss-making airline was seeking a new ownership structure with additional capital. The airline owed €25 million as a bridge loanBridge loan
A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.-Description:A bridge loan is interim financing for an individual or business until...
to hedge fund York Global Finance II, due on 15 July 2009.
On 8 January 2009, leasing company GECAS ordered SkyEurope to return six Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
aircraft due to financial problems.
On 23 June 2009, SkyEurope went into administration having been granted protection from its creditors by the district court in Bratislava
Bratislava
Bratislava is the capital of Slovakia and, with a population of about 431,000, also the country's largest city. Bratislava is in southwestern Slovakia on both banks of the Danube River. Bordering Austria and Hungary, it is the only national capital that borders two independent countries.Bratislava...
.
On 11 August 2009, SkyEurope was not allowed to fly into Vienna International Airport
Vienna International Airport
Vienna International Airport , located in Schwechat and southeast of central Vienna, is the busiest and biggest airport in Austria. It is often referred to as Schwechat, the name of the county it is in. The airport is capable of handling wide-body aircraft such as the Boeing 747 and Airbus A340...
due to unpaid landing fees. Flights were handled at Bratislava Airport instead.
SkyEurope filed opening of bankruptcy proceedings on 31 August 2009. All flights were suspended with immediate effect on 1 September 2009.
Rescue flights
Due to passengers being stranded, IrishIreland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
airline Ryanair
Ryanair
Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport....
announced on 1 September 2009, that they launched rescue fares from Bratislava
Bratislava
Bratislava is the capital of Slovakia and, with a population of about 431,000, also the country's largest city. Bratislava is in southwestern Slovakia on both banks of the Danube River. Bordering Austria and Hungary, it is the only national capital that borders two independent countries.Bratislava...
to Alicante
Alicante
Alicante or Alacant is a city in Spain, the capital of the province of Alicante and of the comarca of Alacantí, in the south of the Valencian Community. It is also a historic Mediterranean port. The population of the city of Alicante proper was 334,418, estimated , ranking as the second-largest...
, Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
(Girona), Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
(Charleroi), Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
(Ciampino), Liverpool
Liverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
(Stansted). Flights were bookable until 20 September 2009 and certain flights till 17 December 2009. All flights were sold at a price of €25, one way, taxes and charges included.
Malev Hungarian Airlines
Malév Hungarian Airlines
Malév Hungarian Airlines is the flag carrier and principal airline of Hungary. It has its head office in the Lurdy House in Budapest, with its main operations at Budapest Ferenc Liszt International Airport. From there, the airline flies to 50 cities in 34 countries worldwide using a fleet of 22...
also accepted people holding SkyEurope tickets on their flights for a discounted price. Malev was offering one-way travel options to a total of 12 cities for all those who held a SkyEurope air ticket and were unable to board their flight because of the bankruptcy proceedings launched against the company. The one-way air tickets were priced from €49.
Wizz Air
Wizz Air
Wizz Air Hungary Légiközlekedési Kft. is a Hungarian low-cost airline with headquarters in the Airport Business Park C2 in Vecsés, close to Budapest Ferihegy International Airport, Hungary. The airline typically uses secondary airports serving many cities across Europe.- History :The airline was...
also announced rescue flights for passengers stranded at Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
to Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, Bari
Bari
Bari is the capital city of the province of Bari and of the Apulia region, on the Adriatic Sea, in Italy. It is the second most important economic centre of mainland Southern Italy after Naples, and is well known as a port and university city, as well as the city of Saint Nicholas...
, Bourgas, Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Copenhagen
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
(Luton), Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
(Bergamo), Naples
Naples
Naples is a city in Southern Italy, situated on the country's west coast by the Gulf of Naples. Lying between two notable volcanic regions, Mount Vesuvius and the Phlegraean Fields, it is the capital of the region of Campania and of the province of Naples...
, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
(Orly), Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
(Fiumicino), Thessaloniki
Thessaloniki
Thessaloniki , historically also known as Thessalonica, Salonika or Salonica, is the second-largest city in Greece and the capital of the region of Central Macedonia as well as the capital of the Decentralized Administration of Macedonia and Thrace...
and Venice
Venice
Venice is a city in northern Italy which is renowned for the beauty of its setting, its architecture and its artworks. It is the capital of the Veneto region...
(Treviso) and from Bratislava
Bratislava
Bratislava is the capital of Slovakia and, with a population of about 431,000, also the country's largest city. Bratislava is in southwestern Slovakia on both banks of the Danube River. Bordering Austria and Hungary, it is the only national capital that borders two independent countries.Bratislava...
to Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
. Flights were bookable until 15 September 2009 with certain flights available till 26 March 2010 for a total fee of €30 one way.
Also Blue Air
Blue Air
Blue Air Transport Aerian S.A. is a low-cost airline based in Bucharest, Romania, operating mostly out of Aurel Vlaicu International Airport It started operations in December 2004.- Destinations :...
offered some rescue flights for passengers stranded in Bucharest
Bucharest
Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....
to Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
. The extra fee was €60
Financial results
The company never managed to make a profit. At the end of March 2009, it had negative equityNegative equity
Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan. In the United States, assets with negative equity are often referred to as being "underwater", and loans and borrowers with negative equity are said to be "upside down".People...
with liabilities two times higher than assets. Shares fell from its IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
level of 6 euro per share to a mere 20 cents per share at the end of January 2009. On 30 September 2008, SkyEurope had overdue debt one million EUR on social insurance
Social insurance
Social insurance is any government-sponsored program with the following four characteristics:* the benefits, eligibility requirements and other aspects of the program are defined by statute;...
of its employees. The overdue debt gradually increased to €3.1 million at the end of June 2009. At 31 March, SkyEurope was in technical default on its loan from Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
.
According to released Preliminary results for FY 2008, "material uncertainties exist regarding the ability of SkyEurope Holding to continue as going concern
Going concern
A going concern is a business that functions without the threat of liquidation for the foreseeable future, usually regarded as at least within 12 months.-Definition of the 'going concern' concept:...
". The company failed to publish audited results for financial year 2008 on 30 January 2009, management stated it expects the statements will be published by 17 February 2009 at the latest. On 17 February, SkyEurope announced further postponement, its management expects the audited results will be published by 15 March. On 15 March, SkyEurope announced a third postponement, its management expects the audited results for FY 2008 will be published by 15 April.
In June 2009, in an effort to avoid bankruptcy, SkyEurope announced a restructuring of the company and received bankruptcy protection from the Slovak courts (valid in the whole European Union). However, this failed and on 1 September 2009, the airline went into bankruptcy. In March 2010 liabilities were estimated up to 180 million Euro and assets less than 6 million Euro (including 0,5 million of cash).
| million EUR | FY 2004 | FY 2005 | FY 2006 | FY 2007 | FY 2008 | X/08-III/09 |
|---|---|---|---|---|---|---|
| Operating revenues | 53 | 113 | 159 | 236 | 260 | 85 |
| Operating expenses | (66) | (146) | (214) | (257) | (316) | (111) |
| Operating profit (EBIT) | (13) | (34) | (55) | (21) | (56) | (27) |
| Net profit after tax | (10) | (29) | (57) | (24) | (59) | (32) |
| Assets | 22 | 84 | 117 | 150 | 113 | 94 |
| Equity | 0.1 | 34 | 16 | (3) | (61) | (98) |
| Liabilities | 22 | 50 | 101 | 152 | 174 | 192 |
| Cash and equivalents | 9 | 46 | 42 | 12 | 1 | 0.5 |
| Market capitalisation | n/a | 102 | 82 | 103 | 19 | 6 |
| FY 2004 | FY 2005 | FY 2006 | FY 2007 | FY 2008 | X/08-III/09 | |
|---|---|---|---|---|---|---|
| Passengers (thousands) | 745 | 1,728 | 2,561 | 3,312 | 3,761 | 1,249 |
| Revenues per passenger (EUR) | 71 | 65 | 62 | 71 | 69 | 68 |
| Load factor (RPK/ASK in %) | 78.9 | 77.7 | 75.6 | 82.8 | 76.4 | 71.5 |
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FY 2008 | 305 | 284 | 269 | 227 | 255 | 308 | 280 | 333 | 344 | 387 | 415 | 355 |
| FY 2009 | 274 | 220 | 233 | 174 | 161 | 188 | 203 | 208 | 214 | 243 | ||
| index | -10% | -23% | -13% | -24% | -37% | -39% | -28% | -38% | -38% | -37% |
Before the IPO, the largest shareholders were East Capital funds (16.72), EBRD (16.03), Christian Mandl (8.53), Peter Struhár (8.31), Alain Skowronek (8.19), DWS funds (7.79), GLG funds (7.17), Griffin funds (7.04), Euroventures Danube (6.68) and Foundation (6.39). Other investors held the remaining 7.15 share.
Destinations
SkyEurope operated 44 routes to 30 destinations in 17 countries. On 29 January 2009, MFDMladá fronta DNES
Mladá fronta Dnes, also known as MF DNES or simply Dnes , is the second most sold daily newspaper in the Czech Republic. Its name could be translated into English as Youth Front Today...
reported the airline cancelled hundreds of already booked flights from Prague.
Fleet
| Aircraft | In Fleet | Orders | Notes |
|---|---|---|---|
| Boeing 737-300 Boeing 737 Classic The Boeing 737 Classic is the name given to the -300/-400/-500 series of the Boeing 737 following the introduction of the -600/-700/-800/-900 series. They are short- to medium- range, narrow-body jet airliners produced by Boeing Commercial Airplanes. The Classic series was introduced as the 'new... |
7 | 0 | 3 were leased from Air Slovakia Air Slovakia Air Slovakia was an airline based in Bratislava, Slovakia, operating out of M. R. Štefánik Airport. The airline offered scheduled and chartered passenger flights, as well as aircraft lease .- History :... 2 were stored at BUD Budapest Ferihegy International Airport Budapest Liszt Ferenc International Airport , formerly known as Budapest Ferihegy International Airport, is the international airport serving the Hungarian capital city of Budapest, and the largest of the country's five international airports. The airport offers international connections primarily... |
| Boeing 737-500 Boeing 737 Classic The Boeing 737 Classic is the name given to the -300/-400/-500 series of the Boeing 737 following the introduction of the -600/-700/-800/-900 series. They are short- to medium- range, narrow-body jet airliners produced by Boeing Commercial Airplanes. The Classic series was introduced as the 'new... |
2 | 0 | Two were dry-leased from Avia Asset Management Avia Asset Management AviaAM Leasing is a group of companies providing commercial aircraft leasing and management services. It is the only company in the Baltic States engaged in long-term aircraft lease business... |
| Boeing 737-700 Boeing 737 Next Generation The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners... |
4 | 10 | 1 was seized at ORY |
| Total | 13 | 10 |
In 2005 SkyEurope and Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
finalized the order for four Boeing Next-Generation 737-700s
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...
worth US$220 million. The order includes purchase rights for up to 16 additional airplanes. This order followed
SkyEurope's order with leasing company GECAS for 12 Boeing Next-Generation 737s.
In April 2007, SkyEurope purchased an additional five jets. SkyEurope had an option to order six more jets at the price set in a 2005 deal with Boeing to buy as many as 32 planes by 2011.
At the end of FY 2008, SkyEurope had agreements with GECAS and Dubai Aerospace Enterprise
Dubai Aerospace Enterprise
Dubai Aerospace Enterprise is a global aviation corporation. DAE was founded by the Dubai government in 2006 with a $15bn capital base. The company originally had six divisions - DAE Capital, DAE Services, DAE Manufacturing, DAE Airports, DAE Engineering and DAE University...
for the operating lease of twelve Boeing 737 aircraft. At 30 September 2008, the Company failed to comply with stipulated financial covenants, such as liquidity and net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
thresholds. As a result, an event of default would allow lessors to terminate the leases with immediate effect and either claim damages
Damages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
and/or require immediate redelivery of the aircraft. On 24 November 2008, SkyEurope received a default notice from GECAS, as a result of late lease payments. On 9 January 2009, GECAS terminated the lease of six aircraft and ordered SkyEurope to immediately return the 737s. On that day, several SkyEurope flights were delayed up to seven hours. Three additional aircraft were returned to the lessor on 5 January 2009.
The airline operated four Boeing 737-700s
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...
aircraft., two ex-FlyLal
FlyLal
FlyLal was the national airline of Lithuania, based in Vilnius. It operated domestic and international scheduled services. Its main base was Vilnius International Airport....
Boeing 737-500 aircraft (on dry-lease from Avia Asset Management), two ex-United Boeing 737-300 and two Air Slovakia Boeing 737-300 (both on dry-lease). SkyEurope also used other airlines for its flights, mainly Air Slovakia
Air Slovakia
Air Slovakia was an airline based in Bratislava, Slovakia, operating out of M. R. Štefánik Airport. The airline offered scheduled and chartered passenger flights, as well as aircraft lease .- History :...
, and Travel Service
Travel Service
Travel Service may refer to one of three sister European airlines:* Travel Service * Travel Service * Travel Service...
.
In-flight services
SkyEurope had a buy on boardBuy on board
In commercial flight, buy on board is a system where food or beverages are paid for on board; often food or beverages are not included in the ticket price for certain fare classes....
programme, SkyEurope Delights; in the programme food was sold for purchase.
External links
- Runway inflight magazine (Archive)