Airlines Lithuanian Small Planet Airlines announces restructuring

  • Small Planet Airlines

Followed by the German and Polish subsidiaries, the Lithuanian parent company Small Planet Airlines has now also admitted financial problems.

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In mid-September, Germany's Small Planet Airlines filed for insolvency under its own administration. Three weeks later, the Polish airline also had to announce a restructuring.

Now, the parent company, the Lithuanian Small Planet Airlines announced a restructuring program in reaction to the insolvencies of the two subsidiaries. According to the press release, Small Planet Lithuania is forced to start restructuring as it will not receive any income from the two subsidiaries.

As the carrier states, the restructuring will not affect the company’s flights from Lithuania and foreign countries.

"The restructuring processes in Poland and Germany are fundamentally different from the transformations in the Lithuanian company: the companies operating in Poland and Germany this year suffered significant losses and this was the main reason for the restructuring. Meanwhile, the activities of Small Planet Airlines in Lithuania are profitable this year - we plan to have operating profit at the end of the year reach 3.4 million euro. However, it will exceed the amounts that we will have to write off due to unpaid services by German and Polish companies, "explained Kristijon Kaikaris, Manager of Small Planet Airlines Lithuania.

He further continued, that in order to successfully complete the restructuring, investors are necessary for the German and the Polish unit, whereas for the Lithuanian company this is not a prerequisite.

In the case of the German Small Planet, several news portals have reported in recent days that the airline is obviously in negotiations with several investors. The two tour operators TUI and Thomas Cook have already reacted and announced that they will no longer work with Small Planet Airlines for charter flights.

For the coming winter flight schedule, Small Planet Lithuania plans to operate eight aircraft. Two will be based in Vilnius and one in Billund. Additionally, the carrier plans to wet-lease one aircraft to the Vietnamese start-up Bamboo Airways. Another two aircraft will operate flights for the Cambodian Small Planet Airlines subsidiary. An aircraft is parked as a reserve to be used as a replacement aircraft in the event of a technical problem.

According to the company’s website, Small Planet Airlines together with its subsidiaries operated up to 21 Airbus A320 and eight A321 in the last months.

Source © SmallPlanet.aero

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