SkyEurope thrown lifeline

Sky Europe has been thrown a lifeline after investors agreed to take a controlling stake in the Central European budget carrier.

The joint venture between SAPO International of Athens and Lisbon-based Longstock Financial Group, known as Longstock SAPO, said that ‘due to the current financial situation of SkyEurope’ it planned to inject fresh capital into the airline.

SkyEurope said Longstock SAPO had granted it a €10m bridging loan facility, ‘in light of a possible future equity injection’.

SAPO International specialises in luxury travel, including yachting holidays and private island resorts. Longstock previously acquired Air Luxor as the carrier was about to go bankrupt in 2006.

The Gibraltar-based investors will not launch a takeover bid for SkyEurope, but apply for restructuring privilege under the Austrian Takeover Act.