Several airlines have already liquidated or become bankrupt as casualties of the coronavirus. This in spite of only being at the beginning of what is expected to involve a very long recovery time for airlines around the world.
Some airline analysts predict recovery could take three to five years after the pandemic is over. So, fasten your seat belt, the COVID-19 airline-turbulence has just started!
Here are the airlines that have liquidated or become bankrupt so far, since the coronavirus crisis hit (in alphabetical order):
Air Deccan, India’s largest regional budget airline folded in April. With that, it became India’s first coronavirus airline fatality.
Mexico’s flagship carrier announced that it was declaring Chapter 11 bankruptcy on June 30th. The airline cited “unprecedented challenges” as the reason for the bankruptcy. Restructuring under Chapter 11 allows AeroMexico to continue flying. According to CEO Andres Conesa, the airline will use the process to strengthen its financial position, obtain new financing, and increase liquidity.
Air Mauritius entered into voluntary administration with Grant Thornton consulting in April. The airline did this to try to avoid going into bankruptcy. The consultancy was hired to support the restructuring process. Although Air Mauritius says it hopes to start international flights again in September they could be faced with an uphill battle. The airline was already struggling with finances in 2019.
The Columbian Avianca is the second-largest carrier in South America. The airline filed for Chapter 11 bankruptcy protection in May. The airline will continue flying during the restructuring.
Sweden’s BRA airline applied for court-administered reorganization to protect the airline from bankruptcy in April. BRA grounded all flights but might start back up after the summer, depending on the coronavirus situation.
Regional carrier Compass Airlines, which provided service for American Eagle and Delta Connection shut down in April.
UK regional airline Flybe was struggling long before the coronavirus. and The UK government as well as Virgin Atlantic tried to save it to no avail. In March, the airline entered into a voluntary administration,
Chile’s airline LATAM filed for U.S. bankruptcy protection in May because of the coronavirus pandemic. However, the airline says it will continue to fly while it restructures its debts in bankruptcy court.
Low-cost airline Level Europe, an IAG airline, is another coronavirus-casualty. The airline announced its plans to file for insolvency.
Miami Air International
Miami Air International filed for Chapter 11, then folded its operations. Operating for 29 years, the charter airline had a small fleet of Boeing 737s. Miami Air operated worldwide passenger flights for cruise operators, professional sports teams, the US military, and others.
Ravn Air was Alaska’s largest regional carrier. The airline filed for bankruptcy in April. The airline is about to go up for auction.
South African Airways
South African major carrier South African Airways’ future is unknown. The money-losing airline has been in talks of restructuring. The South African government has been talking about shutting down the airline to start a new national airline.
SunExpress is a Turkish airline jointly owned by Lufthansa and Turkish Airlines. The airline has provided flights to popular vacation spots in Turkey. However, flight operations will end, and the airline will go into liquidation shortly.
Trans States Airlines
This United Express provider folded in April. Trans States had originally planned to keep flying until the end of 2020. Thanks to the coronavirus crisis, the venture ended earlier.
Australia’s second-biggest airline filed for voluntary administration, the Australian equivalency of bankruptcy on April 21st. Bain Capital recently agreed to buy the airline for an undisclosed sum. However, the future of Virgin Australia remains unknown.
How many more airlines will become liquidated or bankrupt from the coronavirus pandemic before the crisis is over? Who is next? You can contact us here.
Featured Image: Capt. Tom, turbulence over Europe. CaptainJetson.com.