Posted January 15, 2009 12:38 PM
By James Mellon
The Aftermath
Last year was clearly one of the worst the industry has ever experienced. For many airlines it was a tough operating environment to be in. For some it was too tough. Airlines cease trading on a regular basis. However because of the higher number of casualties and because of the bigger name airlines amongst them, 2008 was a real shock to the system.
So why did this happen? All of the airlines have their own rationale why they stopped flying, but there are three obvious reasons for the cessation of many concerned.
Firstly, the general drop in demand has meant aircraft have been flying around with more empty seats than before. If there are fewer passengers being flown, there is less money to make from them. So naturally it does not help the second and third problems.
The large hike in the price of oil during March and April helped squeeze out some vulnerable airlines whose business models could not cope with the increase. Those that got their hedging right before hand were better placed to survive. The price increase hit hard knocking out some airlines cold, at roughly a rate of one a week for a period of time. Fuel had become the new dirty four letter ‘f’ word.
The third issue has of course been the credit crunch. With the first two issues in mind (reduced income coupled with higher fuel prices) have caused enormous cash flow problems. Airlines failing to meet payments can arouse suspicion with the leasing companies that supply aircraft to them. So the inevitable consequence is aircraft being repossessed. The initial impact of this issue was the collapse of another round of airlines. XL Airways, Zoom and Futura all failed part way through September.
Below is a list of the different carriers that ceased operations during 2008, be it that they were forced to cease or voluntarily stopped operating. It includes operators of eastern and western built jets and turboprops. The keen-eyed among you will notice that there are certain airlines that are not on the list. Those who have gone into administration but have not technically ceased operations have been kept out. Examples include British operators European and Flightline who both went into administration during December but have not finally stopped business, even if none of the planes are flying anymore.
Airline | Country | Ceased |
Aero Airlines | Finland | January |
Alpi Eagles | Italy | January |
BritishJet.com | United Kingdom | January |
Coast Air | Norway | January |
Prima Charter | Poland | January |
Aviaprad Airlines | Russia | February |
African Safari Airways | Kenya | March |
Japan Asia Airways | Japan | March |
Big Sky Airlines | USA | March |
Adam Air | Indonesia | March |
Freedom Air | New Zealand | March |
Merlin Airways | USA | March |
ATA Airlines | USA | April |
Oasis Hong Kong Airlines | Hong Kong | April |
Ocean Airlines | Italy | April |
Skybus Airlines | USA | April |
Skyway Airlines | USA | April |
Mesopotamia Air | Iraq | April |
Swazi Express Airways | Swaziland | April |
Aloha Airlines | USA | April |
Eos Airlines | USA | April |
Nationwide Airlines | South Africa | April |
Angkor Airways | Cambodia | May |
Euromanx | United Kingdom | May |
Far Eastern Air Transport | Taiwan | May |
Champion Air | USA | May |
Silverjet | United Kingdom | May |
Air Pack Express | Spain | July |
Air West Coast | New Zealand | August |
Gemini Air Cargo | USA | August |
Aerocalifornia | Mexico | August |
Zoom Airlines | Canada | August |
Zoom Airlines (UK) | United Kingdom | August |
Futura International Airways | Spain | September |
XL Airways UK | United Kingdom | September |
AeBal - Aerolineas de Baleares | Spain | September |
Costa Rica Skies | Costa Rica | September |
Carib Aviation | Antigua & Barbuda | September |
Galaxy Airlines | Japan | October |
Aero-Tropics Air Services | Australia | October |
Lagun Air | Spain | October |
Bravo Airlines | Spain | October |
Sterling Airlines | Denmark | October |
Air Comet Chile | Chile | October |
Kras Air | Russia | October |
Flyant Cargo | Spain | November |
Inter Airlines (Turkey) | Turkey | November |
CargoItalia | Italy | November |
Alma De Mexico | Mexico | November |
LTE | Spain | December |
Primaris Airlines | USA | December |
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