By: Ahmed Yasser
CAIRO, Feb.6. (SEE) – Germania's airlines has announced on Tuesday, for bankruptcy according to company communications the ''Swiss'' branch Germania ''Flug AG'' is not concerned by this step. The airline's CEO Karsten Balkem, reported that ''Germania' had no other option but to file for bankruptcy following financial trouble. The Berlin-based company cancelled all flights and advised passengers to contact their travel agents about alternative arrangements.
The insolvency concerns Germania ''Fluggesellschaft mbH'', technical services sister company and ''Germania Technik Brandenburg GmbH'', as well as ''Germania Flugdienste GmbH''. The Swiss entities ''Germania Flug AG and Bulgarian Eagle are not affected.
Germania's Airlines
According to Balkes, the money problems in ''Germania'' were caused by unforeseen events, such as; a massive increase in kerosene prices over the summer of last year. In addition to significant delays in aircraft flooding as well as an unusually high number of technical services for the company's fleet would have resulted in bankruptcy.
In early January, the financial bottlenecks of Germania were know the company announced it was reviewing several financing options to meet short-term liquidity needs. On January 19, the airline announced that it had received a significant commitment exceeding the targeted € 15 million. However, at the end of last week, ''Germania'' has published reports in the media that the payment of wages in Germany would be delayed.
According to the ''Federal Gazette'', the company recorded a loss of 7.7 million euros in 2016 and 6.8 million euros in 2015 and the ''Germania Beteiligungsgesellschaft'', owner of the airline generated a net loss of 32 million euros according to the 2016 annual financial statements.
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