GERMANY.German charter airline Aero Lloyd, which carries passengers for Europe’s largest travel group TUI, is to file for insolvency after its main creditor, BayernLB, withdrew its support.
The airline said it had halted all flights from 6.00am yesterday, affecting some 8,500 passengers in Germany and in many of its 60 international destinations. A spokesman said about 4,000 passengers were waiting for flights at German airports while roughly 4,500 passengers were stranded in other countries.
Aero Lloyd blamed BayernLB, which holds a 66% stake in the airline, for not providing the funds necessary to support its restructuring.
A statement on the carrier’s website said: “In spite of an extensive, three-year rehabilitation plan, employed since 1 June this year, the regional bank BayernLB – as a majority shareholder and largest lender – decided not to undertake the necessary capital measures.”
1,400 employees, 21 Airbus aircraft and the US$10 million inflight sales division are also affected.
Munich-based bank BayernLB said in a statement that a promising concept to continue Aero Lloyd’s operations was impossible to push through given the airline industry’s overall situation.
TUI said in a statement it had contracted aircraft at other charter airlines to carry its clients from today.
