SkyEurope collapse leaves thousands of fliers stranded

Slovakian budget carrier is latest scalp claimed by airline industry downturn

SkyEurope Airlines, the Slovakian discount carrier, lost its battle against bankruptcy yesterday, leaving travellers stranded in airports from Manchester to Bratislava.

A raft of budget rivals, including easyJet and Ryanair, rushed to offer cheap "rescue" tickets to passengers stranded abroad after the company grounded its planes.

SkyEurope's failure comes as no surprise to industry-watchers. The company started in 2002 and grew quickly – boosted by the expansion of the EU in 2004. It raised €120m (£106m) when it listed on the Viennese stock exchange the following year, but rapid growth never turned to profits.

New management, brought in two years ago, backed the airline out of Polish and Hungarian markets to focus on Vienna, Prague and Bratislava, but to no avail. Last year, the group's losses ballooned to €62m and the fleet was cut from 15 aircraft to just five.

With the global industry struggling with the toxic combination of volatile fuel prices and crushed economic confidence, SkyEurope made little progress. The first quarter of 2009 saw the carrier slip another €15m into the red and the group went into bankruptcy protection in June, just weeks before the departure of Jason Bitter, the chief executive.

Last month SkyEurope was offered a lifeline, in the shape of a €16.5m investment offer from Austria's Focus Equity. But the money was contingent on the successful conclusion of a major restructuring of the company, and SkyEurope went bankrupt too quickly to comply. By August, the carrier's flights were banned by Vienna for non-payments of bills, with Prague and Bratislava following suit last week.

The Slovakian company joins a growing list of airlines brought down by the global downturn. More than 80 have gone bankrupt since the start of 2008. And while SkyEurope may be the first major collapse in Europe this year, it is unlikely to be the last.

SkyEurope was popular in the UK for weekend trips from London Luton and Manchester. Some passengers with tickets booked on SkyEurope flights may be entitled to a refund from their credit or debit card providers. The Atol scheme will also protect most travellers who booked flights through a travel agency as part of a package, although it may not cover late-bookers.

Abta, the travel association, said the situation reinforces its calls to the EU and UK government to make it a legal requirement on airlines to provide financial protection for passengers.

Mark Tanzer, the chief executive of Abta, said: "This airline failure in a tough economic climate, along with several others last year, highlights the need for urgent action to plug this gaping hole in customer financial protection."

The Independent travel offers: Discover a world of inspiring destinations

Voices
The Sumatran tiger, endemic to the Indonesian island of Sumatra, is an endangered species
voicesJonathon Porritt: The wild tiger population is thought to have dropped by 97 per cent since 1900
News
news
Arts and Entertainment
Story line: Susanoo slays the Yamata no Orochi serpent in the Japanese version of a myth dating back 40,000 years
arts + entsApplying the theory of evolution to the world's many mythologies
Life and Style
Popular plonk: Lambrusco is selling strong
Food + drinkNaff Seventies corner-shop staple is this year's Aperol Spritz
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Shake down: Michelle and Barack Obama bump knuckles before an election night rally in Minnesota in 2008, the 'Washington Post' called it 'the fist bump heard round the world'
newsThe pound, a.k.a. the dap, greatly improves hygiene
Arts and Entertainment
La Roux
music
Arts and Entertainment
Graham Fellows as John Shuttleworth
comedySean O'Grady joins Graham Fellows down his local Spar
News
people
News
Ross Burden pictured in 2002
people
News
Elisabeth Murdoch: The 44-year-old said she felt a responsibility to 'stand up and be counted’'
media... says Rupert Murdoch
Arts and Entertainment
tv
Extras
indybest
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    C++ Software Engineer - Hounslow, West London - C++ - to £60K +

    £40000 - £60000 per annum + Pension, Healthcare : Deerfoot IT Resources Limite...

    VB.NET and C# developer (VB.NET,C#,ASP.NET)

    £30000 - £45000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET a...

    Visitor Experience volunteer

    Unpaid voluntary role: Old Royal Naval College: To assist the Visitor Experien...

    Telesales Manager. Paddington, London

    £45-£55k OTE £75k : Charter Selection: Major London International Fashion and ...

    Day In a Page

    A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

    A new Russian revolution

    Cracks start to appear in Putin’s Kremlin power bloc
    Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

    Apartheid’s sadistic killer that his country cannot forgive

    The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
    Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

    Standing my ground

    If sitting is bad for your health, what happens when you stay on your feet for a whole month?
    Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

    Greene prays for chance to rebuild after injury agony

    Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
    Israel-Gaza conflict: Secret report helps Israelis to hide facts

    Patrick Cockburn: Secret report helps Israel to hide facts

    The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
    The man who dared to go on holiday

    The man who dared to go on holiday

    New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
    Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

    Best comedians: How the professionals go about their funny business

    For all those wanting to know how stand-ups keep standing, here are some of the best moments
    The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

    The Guest List 2014

    Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
    Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

    Jokes on Hollywood

    With comedy film audiences shrinking, it’s time to move on
    It's the best of British art... but not all is on display

    It's the best of British art... but not all is on display

    Voted for by the British public, the artworks on Art Everywhere posters may be the only place where they can be seen
    Critic claims 'I was the inspiration for Blanche DuBois'

    Critic claims 'I was the inspiration for Blanche DuBois'

    Blanche Marvin reveals how Tennessee Williams used her name and an off-the-cuff remark to create an iconic character
    Sometimes it's hard to be a literary novelist

    Sometimes it's hard to be a literary novelist

    Websites offering your ebooks for nothing is only the latest disrespect the modern writer is subjected to, says DJ Taylor
    Edinburgh Fringe 2014: The comedy highlights, from Bridget Christie to Jack Dee

    Edinburgh Fringe 2014

    The comedy highlights, from Bridget Christie to Jack Dee
    Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

    Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

    The woman stepping down as chair of the Heritage Lottery Fund is worried