Scheduled flights ceased between November 26th and December 16th (five days early) while the airline underwent restructuring. It had already terminated several regional routes in March. This list has been by no means exhaustive, with many other carriers having also experienced significant financial difficulties in what has been an unprecedented year for commercial aviation. Yet another airline that won’t make it through the pandemic lockdown. Among these have been various Latin American carriers, including: In mid-June, there were rumors that Aeromexico’s search for funding would lead it to file for Chapter 11 Bankruptcy. But, no surprises, this February news are that it is ceasing operations for the second (and possibly definitive) time. The domestic operation will be closed down, while the international services will be partly taken over by the group’s units in Brazil, Chile and Peru (that is, as soon as the travel situation is normalized). There is still a chance it may get restructured and fly again, but chances look slim, even more so since the Argentinian economy is again (!) More than eight months later, the airline is no closer to returning to the skies. Delta Air Lines announced in March 2020 that it would reduce international flights by 20–25% and domestic flights by 10–15%. Skift Take. It is important to highlight that the, larger, Turkish branch of SunExpress (operating 40 aircraft) is a separate entity and continues to operate. LIAT was an inter-island airline operating ATR turboprop aircraft throughout the Caribbean. Panamian flag carrier Copa Airlines was the only example from the top four to have avoided this restructuring procedure. Sign up to our daily aviation news digest. Travel data company Cirium found that 43 commercial airlines have failed — completely ceased or suspended operations — in 2020 so far, compared to 46 in all of 2019 and 56 throughout 2018. Colombian flag carrier Avianca filed for Chapter 11 Bankruptcy in the USA on May 10th this year. 36 of its 50-seater Embraer ERJ-145 regional jets are going to be transferred to another United partner, ExpressJet. As a result of this decision, the airline chose to remove 14 aircraft from its fleet, based on their age, leasing conditions, and maintenance cost. Here is what's happening and what airlines can do to survive Covid-19. This suspension was planned to last until February 9th. Dubai’s Safari Park reopens with new adventures after two-year closure October 8, 2020. That prompted market speculation about its future. U.S. As part of the restructuring of Virgin Australia, its parent company, by its new investors, Bain Capital, the Tigerair Australia operation is going to he shut down. The airline in March reported a 25 percent drop in bookings, and CEO Ed Bastian remarked that the hit to passenger demand was similar to the impact of the 9/11 attacks on air travel. Several airlines that have filed for bankruptcy due to the current crisis have also managed not to fold. Linda Owens Send an email 4 weeks ago. This left 450 employees out of work, but Scoot insisted that there was “no foreseeable recovery from NokScoot’s current financial situation.”. A reader has brought this one to my attention. Not sure it belongs into this list, since this this fully-owned subsidiary of Lufthansa can hardly be considered a stand-alone airline and it was going to be folded into Eurowings (another of the group’s units) anyway. By Faizan Farooque Jul 31, 2020, 6:31 am EST July 31, 2020 It has been a rough year for American Airlines (NASDAQ: AAL ) stock, but the biggest hits are yet to come. Let’s look at some examples of airlines that either collapsed or filed for bankruptcy during 2020. Its extensive network differed from other London-centric British carriers in that it featured several hubs throughout Britain. AeroTELEGRAPH reported that all but 20 of its 600 jobs would be cut as a result. Well, it may be Ravn itself that gets back to business if it manages to secure funding for those routes. This Missouri-based, regional airline and United Airlines feeder will still be flying for a few more month, but, as reported by The Points Guy, it has already been decided that it will cease operations at the end of this year. I was hesitant about including this one, since this airline seems to have had very sketchy operations in the last few years, with little information available. Based in Oxfordshire, UK. NokScoot was a medium and long haul low cost carrier that operated mainly between Thailand and several Asian markets (China, Japan, India…) with a fleet of 7 B777s. Retailers, airlines, restaurants. However, it looks like the ambitious rebranding, renaming and re-fleeting programme was not enough to pull it out of the red. Hardly a surprise, since it had been in a financially fragile situation for quite a long time. Airlines cut expenses by an average of a billion dollars a day over 2020 and will still rack-up unprecedented losses. LATAM had obtained investments totaling $2 billion, with which it hoped to “have enough financial support to exit the current coronavirus crisis successfully.” Nonetheless, LATAM Brazil remained in negotiations with the country’s national bank for further support. Given the raging popularity of the 2019 list of airline bankruptcies, I have resolved to continue the work into 2020. Although this Danish charter operator has declared bankruptcy, it looks like Jet Time’s owners will launch a new airline with an almost identical name soon. On February 11th, the day before AtlasGlobal’s bankruptcy filing, Olbia-based Air Italy also announced that it would be liquidated. On March 5th, it filed for administration. American Airlines posted a significantly worse-than-expected loss in the first quarter, its first loss since emerging from bankruptcy six years ago. This was a small Canadian airline, based in Toronto, that operated Beechcraft 1900D and CRJ100s, for some time in partnership with Air Canada. Leeward Islands Air Transport - LIAT (Antigua). It operated a 5 aircraft all-Airbus fleet. Some larger and more established airlines have been able to cope with the impact of the crisis through measures such as cutting jobs. Fitch expects more airline bankruptcies in 2021, particularly among smaller and less well-capitalized airlines, statement read. … Not much info about this airline, their website is no longer operative, but the FAA revoked its AOC earlier this January due to it having operated flights with unqualified pilots. Let us know your experiences and thoughts in the comments. A side-effect of the troubles at Avianca’s parent company, that filed for Chapter 11 on this same week. Its fleet consisted of three different Boeing 737 variants at the time of its liquidation, including the MAX 8. Follow these easy steps to disable AdBlock, Follow these easy steps to disable AdBlock Plus, Follow these easy steps to disable uBlock Origin, Follow these easy steps to disable uBlock, United’s CEO Explains His Thoughts On Mandatory Vaccinations, South African Airways Could Leave Administration By March, Qatar Airways Eyes Upgraded Boeing 787-8 IFE System, Emirates’ Self Check-In Screens Are Now Fully Touchless. It’s fleet consisted entirely of Embraer ERJ-145 aircraft, all 84 of them. March 22, 2020 at 10:04 p.m. UTC. Be in the know. Miami Air International was a charter airline based in the city from where it took its name. Boeing Sells $10 Billion Of Bonds – What Does That Mean. While the ongoing struggles are not going to disappear overnight, aspects such as Flybe’s potential return to the skies might just allow one to hope for a more stable 2021. The problems of South African Airways (SAA) had been long time in the making, but Covid-19 has been the final straw. pointed out by aviation journalist Seth Miller, today’s announcement by the German flag carrier, this piece I wrote about seaplane operations. The coronavirus pandemic has dominated the news this year, changing the very essence of life as we know it. South African Airways was one of the largest airlines in Africa. However, despite the promise of the early resumption, the airline suspended scheduled services once again on January 7th, 2020. Most Airlines Could Be Bankrupt by May According to This Industry Analyst ... 2020 at 11:16AM ... but I still believe the U.S. airlines can weather the storm without bankruptcies… At the start of 2020, UAL stock traded at over $85 per share. Please Support us by turning off your adblocker. The airline filed for Chapter 11 bankruptcy protection in May. It hopes that the downsizing will help it to focus on its core markets of Colombia and El Salvador. It operated a fleet of 35 Airbus aircraft, 18 of them A330 wide-bodies. This led it to particularly specialize in direct cross-country routes where rail travel was not a viable alternative. By the end of May-2020, most airlines in the world will be bankrupt. This name may mean little to most, since this Go2Sky, based in Bratislava, was mainly operating for other carriers under ACMI contracts. Airlines are on the brink of bankruptcy — what happens to your voucher, travel miles and airline credit card if they go belly up? The struggling British airline Flybe has collapsed, leaving passengers stranded and told to find their own way home. However, despite the promise of the early resumption, the airline suspended scheduled services once again on January 7th, 2020. This is the Vienna-based arm of IAG. This time is the turn of Cathay Dragon (once known as Dragonair), a subsidiary of Cathay Pacific that operated throughout Asia. Airline bankruptcies will interrupt scheduled aircraft deliveries, ... choosing not to receive as many jets as originally planned during 2020. Airline Bankruptcies Many lay observers broadly equate bankruptcy with going out of business. This suspension was planned to last until February 9th. When Qatar Airways invested in ailing Italian airline Meridiana, it seemed that a new youth was at hand for this airline based that started out of Sardinia and is still partly owned by a society historically linked to the Aga Khan. This is the German branch of SunExpress, a joint venture between Lufthansa and Turkish Airlines that caters to the leisure market, mainly between Germany and sun and sea destinations in the Mediterranean and other holiday spots. It had also been the launch customer of the Embraer 195, and the world’s largest operator of the De Havilland Dash-8 Q400. Apart from airlines retiring parts of their owned fleets, they will also hand back aircraft to the leasing companies (remember, ca.53% of the global western built commercial jet fleet in service and in storage is currently owned by these leasing companies). Aeromexico had been struggling financially even before the pandemic struck commercial aviation. “Many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants,” Capa said in a report. I guess it won’t be hard for European low cost carriers to fill the void once borders open again and tourists start to flock back to the Adriatic shores. The Antiguan government has said that a new airline may be created to fill the gap left by LIAT. Like LATAM, Avianca will continue flying during the restructuring. UK regional airline Flybe just ceased operations and entered administration, ending a 40-year run, putting 2,000 people out of work, and leaving numerous cities without direct connectivity. However, the airline had been struggling financially even before the pandemic reached Europe. On June 21st, it denied these claims, stating that it had “not initiated, nor has it made the decision to initiate, a restructuring procedure under Chapter 11 of the United States Bankruptcy Code.”. What seems clear, though, is that today’s announcement by the German flag carrier marks the end of the road for Germanwings. ... With tourism ground to a halt almost everywhere, it’s been hard to keep track of all the airlines that went bankrupt in 2020. Air Italy had been the country’s second-largest airline, after flag carrier Alitalia. This suspension was planned to last until February 9th. Air Italy was also heavily affected by the grounding of the Boeing 737 MAX, since it had bet on the type to form the backbone of its fleet. It also froze further hiring and suspended share buybacks. The World's Biggest Bankruptcies 2020. The involvement of Virgin Atlantic and a consortium of investors was not enough to save the largest independent regional airline in Europe, with 63 aircraft. Yet another US regional that bites the dust. It had a fleet of 4 Boeing 737-800s. ), Ravn was the only airline servicing multiple isolated destinations all across Alaska, with a mixed fleet of small airplane types (the largest being the DHC-8-100). Additionally, this year will try to keep track as well, on a different entry, of newly started airlines. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air Asia Japan, etc.). I also take the opportunity to thank all those that wrote to me with tips and suggestions from all over the world. UPDATE (9/8/20): it looks like Flyest may actually be turned around, since it has re-negotiated most of its debt and is now seeking investors, The Argentinian subsidiary of the LATAM group is giving up. However, for certain struggling airlines, 2020 proved the last straw. Were it not for the $173 billion in financial support by governments we would have seen bankruptcies on a massive scale,” said de Juniac. Indeed, it had recorded net losses in each of the three previous years (2017-2019). Airlines that operated as subsidiaries of major groups have been among the most affected by closures during this 2020 unprecedented crisis. It was an attempt to gain a foothold in those markets taking advantage of the demise of Austrian carrier Niki, but it was never really clear why this task could not have been fulfilled by Vueling (also part of the IAG group) or what synergies did this brand have with the long haul operation. It is worth noting that some of these carriers folded before the height of the pandemic. The airline is seeking to convert debt to equity, ... Norwegian Air says 4,700 jobs at risk after unit bankruptcies, contracts axed. A keen amateur photographer, he is also currently one flight away from reaching his 100th sector flown as a passenger. A small airline that operated mainly between Buenos Aires and Montevideo as well as a couple of domestic destinations in Argentina with CRJ200 aircraft. Despite its name, Air Georgian was neither from the country or state of the same name. Arguably, this is not how Avianca was expecting to celebrate the beginning of its second century in business. Air Asia Japan had three A320 aircraft in its fleet. NokScoot was a collaboration between low-cost airlines Nok Air (Thailand) and Scoot (Singapore). The company is now entering liquidation procedures. German Airways (Luftfahrtgesellschaft Walter) (Germany). Preliminary data for January 2020 show a decline of 1 percent compared with January last year. Advertisement. This is a small Chilean carrier that operated two Boeing 737-300s, mainly in charter flights and covering the mining industry needs. The British government came to the rescue, but this was, understandably, contested by other airlines. The first attempt of the Air Asia group to set up base in Japan ended up with part of the operations being transferred to its venture partner, ANA, in 2013 and rebranded as Vanilla Air, and subsequently merged into the Peach low cost subsidiary. However, on January 29th, AtlasGlobal returned its remaining aircraft (two Airbus A330-200s) to their lessors. ... Airlines doubtlessly provide a socially valuable service. Shoreline Aviation operated 10 Cessna Caravan Seaplanes in the Northeastern US. As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants. It seems that its administrators have finally thrown in the towel. It also served a handful of long-haul destinations, including four in the USA, using former Qatar Airways Airbus A330-200 aircraft. The company’s new CEO has some big opinions on the topic. Shareholders (51% Nok Air - 49% Scoot) decided to liquidate this joint venture in view of the dire market situation caused by the Covid-19 pandemic. Stay informed: Sign up for our daily aviation news digest. It filed for bankruptcy on February 12th, and its operations have remained halted ever since. This is not the first time that an airline operating under the Air Asia Japan brand shuts down. Last month, CEO Roberto Alvo announced that he expects LATAM to exit Chapter 11 Bankruptcy during the second half of 2021. Tigerair Australia operated a mainly domestic network. Another IAG subsidiary also called LEVEL and operating long haul lcc-hybrid services out of Barcelona and Paris continues to be active. Exeter-based Flybe was once Europe’s largest independent regional airline. Avianca, one of Latin America's largest and oldest airlines, filed for Chapter 11 bankruptcy in May. But which are the airlines that have been the worst affected by the events of this unprecedented year? However, the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are complex, affording companies different means of addressing their financial plights. However, just nine days later, it did make such a filing after all. What are your predictions for how 2021 will pan out for the airline industry? According to CAPA Centre for Aviation, a consultancy, most airlines in the world will be bankrupt by the end of May unless governments intervene. It was operating a fleet of Embraer E175s for Delta. The coronavirus pandemic has dominated the news this year, changing the very essence of life as we know it. South African Express had already been experiencing some serious trouble well before the Coiv-19 epidemic hit and between May and August 2018 it had even had its AOC suspended and, then, reinstated. The current crisis being particularly harsh with regional and feeder carriers on both sides of the Atlantic! British airline Flybe goes bankrupt, stranding travelers - Los Angeles Times The Coronavirus epidemic has been the last straw. Airlines, like any business, are susceptible to market fluctuations and economic difficulties. Although you may have never heard of it (I must confess, I hadn’t! It seems that the Palestinian Authority finally decided to pull the plug on its troubled airline. American Airlines has the industry’s highest debt at $34 billion, some $10 billion more than at Delta Air Lines or United Airlines. Published: May 18, 2020 at 12:47 p.m. Montenegro Airlines (Republic of Montenegro). Another US regional feeder, and one owned by the same holding company as Trans States Airlines (mentioned earlier in this list). Plans were sketched to rebrand Flybe as Virgin Connect and act as a feeder, but these never came to fruition. This occurred shortly after the country’s first confirmed coronavirus cases. Coordinated government and industry action is needed - now - if catastrophe is to be avoided. In addition to its main operation in Turkey, it also had a subsidiary in Ukraine. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air … It had ordered 20 Boeing 737 MAX, of which 3 had already been delivered when the grounding happened. It seems that its fleet of two Fokker F50s was subleased to another carrier in Africa. Although this is one of the first (but likely not the last) to close down amidst the coronavirus epidemic, Compass Airlines had already been downsizing for a few months, following Delta’s announcement in the summer of 2019 that it would terminate its contract with Compass. However, there appears to be potential for the airline to return to the skies under new ownership as soon as next year. "Coordinated government and … Seaplanes are always quite interesting, you can check out this piece I wrote about seaplane operations on The Points Guy. Journalist - A recent graduate in German, Jake has a passion for air travel on a student-friendly budget that extends beyond the realms of the usual suspects of low-cost-carriers. We use ads to keep our content free. A government funded recapitalization of South African Airways had been the focus of political debate for already quite a few months, but it is not to be. In Review: 2020’s Airline Failures & Bankruptcies – Simple Flying. A regional airline in South Africa operating under the umbrella of South African Airways (see the previous entry), although with a degree of operational and managerial independence. Otherwise known as ‘BRA’ (the Swedish word for ‘good’), Stockholm Bromma-based Braathens suspended its operations in early April. Don’t expect United Airlines to file for bankruptcy on Scott Kirby’s watch. The combination of travel restrictions and competition from low cost airlines such as JetSmart, has been too much and the airline has decided to close down. 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