SkyEurope wins bankruptcy protection

SkyEurope has said it will continue business as usual after winning court protection from creditors. The Central European low-cost carrier said all tickets would be honoured and suppliers paid.
The Bratislava-based airline sought bankruptcy last week to reorganize after months of trying to seek outside funding. It says its debt level has been one of the main obstacles to finding a major investor.
The airline has now named London-based Reynolds Partners as investment bankers to help it secure outside capital.

Airline CFO Nick Manoudakis said, “With this reorganization, we are confident that we can secure further investment that will support our business plan and future growth.”

Airline CEO Jason Bitter said, “We will be able to operate without any disruption while we implement our reorganization.” The airline says previous reorganization steps are already showing results, with per passenger revenue and load factors on the rise.

The carrier began flying in February 2002 and has been listed on the stock exchanges in Vienna and Warsaw since 2005.

Its results for the year to the end of September 2008, published this week following a delay. It carried 2.1 million passengers in the 12 months to May, but reported a 37% year-on-year fall in passengers last month following cuts in capacity.