Two Small Planet Airlines enter restructuring within a month
Small Planet Airlines Poland has entered into restructuring under the country’s law on October 8, 2018. This is the second airline belonging to Small Planet Airlines that enters restructuring within one months’ time, as Small Planet Airlines Germany filled for insolvency on September 18, 2018.
According to a statement by the Group, restructuring of the Polish charter airline “has been planned” and is an integral part of the business administration changes within the group. The company is now aiming to reduce fleet from its current 10 aircraft and attract financial investment.
Small Planet Airlines Poland is an independent company, therefore its restructuring should not affect Small Planet Airlines in Lithuania and Cambodia, and these carriers will continue operations as usual, the statement also claims.
Less than a month ago, on September 18, 2018, Small Planet Airlines Germany filled for insolvency proceedings. Based on explanation given by the group CEO Vytautas Kaikaris, the airline ran into financial turbulence attempting to take advantage of Air Berlin (AB1) bankruptcy.
“After Air Berlin (AB1) went bankrupt last year, a niche emerged for the other carriers, and Small Planet Airlines Germany chose to almost double in size year on year in order to take advantage of these newly opened possibilities in the market,” Kaikaris was quoted as saying in a statement. “However, the company struggled to manage this successfully due to several factors: late delivery of aircraft before the start of the summer season, shortage of crews in the market, unreliable sub charter aircraft and unforeseeable technical events had a devastating impact on a very intense schedule, which led to flight irregularities which in turn led to increasing cost burden. The financial losses incurred by the German company forced it to file for a restructuring process under the German law”.
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