German airline Germania files for bankruptcy, cancels all flights

The airline flies mainly Mediterranean, North African and Middle Eastern holiday routes for German sun-seekers on package trips. (AFP)
Updated 05 February 2019
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German airline Germania files for bankruptcy, cancels all flights

  • The airline had flown mainly Mediterranean, North African and Middle Eastern holiday routes for German sun-seekers
  • The company blamed ‘unforeseen developments’ for its cash shortage

BERLIN: Berlin-based airline Germania has filed for bankruptcy and canceled all flights with immediate effect, the company said early Tuesday.
The airline with 37 aircraft had flown mainly Mediterranean, North African and Middle Eastern holiday routes for German sun-seekers on package trips, and said it transported over four million passengers a year.
“Unfortunately, we ultimately failed to successfully complete our financing efforts to meet short-term liquidity needs,” said managing director Karsten Balke in a statement.
“We very much regret that, as a consequence, we had no choice but to file for bankruptcy.”
The company blamed “unforeseen developments” for its cash shortage such as “steep kerosene price increases over the summer of last year with a simultaneous fall of the euro against the US dollar” as well as a high number of technical services required by its fleet of aircraft.
Balke said that “we especially regret the impact that this step has on our employees,” who had done their best to ensure reliable and stable flight operations.
“I thank you all personally and with all my heart. I apologize to passengers who cannot take their Germania flight as planned,” said Balke.
The ailing company, which had reported financial woes on January, said it had filed for bankruptcy with a Berlin court late Monday and that all flights were halted overnight.
Affected passengers who booked as part of a package holiday were told to contact their tour operator for replacement flights.
“Regrettably, for passengers who purchased their ticket directly from Germania, there is no entitlement to replacement transport due to the current legal situation,” the airline said.
The company’s subsidiaries Swiss Germania Flug and Bulgarian Eagle were not affected, the statement said.
The small carrier’s bankruptcy comes after Air Berlin, formerly Germany’s second-largest airline, went bust in 2017 after shareholder Etihad Airways withdrew funding following years of losses.


Uber could announce $3bn deal with Careem early this week: sources

Updated 27 min 50 sec ago
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Uber could announce $3bn deal with Careem early this week: sources

  • Dubai-based Careem is main regional rival to Uber
  • Follows long standing speculation about deal

DUBAI: Uber Technologies Inc is set to offer over $3 billion to buy Dubai-based rival Careem Networks FZ, two sources familiar with the deal told Reuters.
Uber's offer could be unveiled during the early part of this week, a third source added.
Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, Bloomberg had earlier reported, citing a term-sheet.
Careem declined comment while Uber did not immediately respond to a request from Reuters to comment.
Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion.
The U.S.-based global logistics and transportation company has been seeking new avenues of growth even as it faces severe competition in its core business of ride hailing from rivals like Lyft Inc.
The IPOs of Lyft and Uber represent a watershed for Silicon Valley's technology unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors happy to back their frothy valuations.