Budget Carrier Germania Files for Bankruptcy

By Paul Riegler on 5 February 2019
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IMG_7747 2Budget airline Germania filed for insolvency in a Berlin-Charlottenburg court in the overnight period from Monday to Tuesday. On Tuesday, the carrier cancelled all of its flights going forward.

It is a second blow to the German airline industry: Air Berlin, then the country’s second largest carrier, filed for insolvency in August 2017.  It leaves thousands of passengers stranded as well as countless others with worthless tickets.

The filing not only affected Germania Fluggesellschaft mbH but also sister companies Germania Technik Brandenburg GmbH and Germania Flugdienste GmbH.  It does not impact Germania Flug in Switzerland, however.

The airline said that rising fuel costs and currency fluctuations were two factors in the insolvency proceeding.

“In the end, we failed to successfully complete our financing efforts to meet short-term liquidity needs,” said the airline’s managing director, Karsten Balke in a statement.

Passengers who booked with a tour operator should contact the tour operator to make other arrangements, but passengers who booked directly with the airline were out of luck.

“For passengers who have purchased their ticket directly from Germania, there is unfortunately no entitlement to replacement transport due to the current legal situation,” the airline said.

The airline was founded in Cologne in 1978 as Special Air Transport, or SAT, and changed its name to Germania in 1986. It originally focused on charter flights but began to offer direct ticket sales in the 2000s.

(Photo: Accura Media Group)

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