Germania becomes the first European airline to go bankrupt in 2019. It declared insolvency due to several “unforeseen circumstances,” such as the rise of fuel prices, the devaluation of the euro against the dollar, and high maintenance costs.
The airline, established in 1978, had a fleet of 38 and served 42 destinations. All of Germania’s passengers are out of luck, as all the flights have been cancelled. The company states that they “unfortunately have no claim to alternative trips,” which would be due under Regulation (EC) 261/2004. We should also note that bankruptcy makes it impossible to claim compensation.
“Unfortunately we were ultimately unable to successfully conclude our financing efforts to cover a short-term liquidity problem,” said Germania’s CEO Karsten Balke, who also thanked the employees for keeping up their work during these tense weeks. That said, it is reported that the staff had to go without pay for January. Germania’s bankruptcy comes more than a year after Air Berlin went belly-up.