Дата: 25-10-18 11:50

Small Planet, big debt: Lithuanian branch enter restructuring

Lithuanian carrier Small Planet Airlines announced on October 24 that it was entering a restructuring phase, under the Lithuanian law. The airline claims the move is to protect its activities from the financial difficulties of its two sister companies in Poland and Germany, that have also entered restructuring respectively on October 8 and September 18, 2018.

Small Planet, big debt: Lithuanian branch enter restructuring
Image : Maarten Visser

The Lithuanian company will have to write-off unpaid amounts for the services provided to its German and Polish counterparts. It will also have to pay off their liabilities as their guarantor.

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“There is a major difference between restructuring in Polish and German companies, and in Lithuania,” says Kristijonas Kaikaris, CEO of the Lithuanian carrier. “Small Planet Airlines in Poland and Germany were loss-making companies, whereas Small Planet Airlines Lithuania continued to operate successfully this year. […] For the restructuring to be successful in Germany and Poland, finding a new investor is vital, whereas Lithuanian company can survive without it.” This option, however, is not ruled out, as it could speed up the process. Small Planet Airlines Lithuania expects to report an operating profit of €3.4 million in 2018, but it would not cover the cost of debts accumulated by its sister companies.

Small Planet Airlines Poland has entered into restructuring under the country’s law on October 8, 2018. This is the second airline belonging to Small Planet Airlines that enters restructuring within one months’ time, as Small Planet Airlines Germany did the same on September 17, 2018.

Small Planets Airlines Lithuania operates eight A320s; two based in Vilnius, Lithuania, one in Billund, Denmark, two in Cambodia where they are operated by a local carrier under the Small Planets Airlines brand, and two in Vietnam, where they have been leased to a start up airline Bamboo Airways


Джерело інформації: AeroTime

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