Many people have long argued that the company’s behaviour was never what you’d hope and it showed many signs of financial stress over the past year.
These finally came to a peak at midnight October 1st and the company went into administration- effective bankruptcy.
In a statement the company said it had been trying to borrow money – pretty much from anyone who would lend it to them, but nobody did, which suggests that even in the most optimistic light, the company’s finances didn’t add up.
The company seemed to want to blame everyone but themselves for their demise. Rebuilding costs on a badly corroded 737 that should really have never been repaired, that cost €11 million. Added to that, it chose to spend €20 million over the summer on wet leasing aircraft rather than cancel flight operations it didn’t have new aircraft for.
While unwise in the mid term when you’re struggling to pay bills, the short term benefits of maintaining cash flow and preventing the demise, hoping you might get the loan to hold on longer, it makes more sense. Sadly that didn’t happen.
After that it was Airbus being blamed for delaying the delivery of its A321neo’s, which seem to have been a combination of the company having no money for the delivery and long engine delays.
Either way the dreams of long haul low cost flying – and for places like Birmingham in the U.K. the resumption of New York flights, have for at least a while longer, been lost in yet another airline failure.
The airline was the hope of many, not least other airlines, that it would demonstrate the full potential of the A321LR and the market for cheaper long haul flights. With Norwegian struggling in some markets using 738Max’s and PrimeraAir’s failure to get off the ground effectively, it’s looking like it’s going to take a much larger and better funded airline to make it happen.
You have to wonder wether or not this will encourage JetBlue to take the jump, they have the managers and the resources that neither Norwegian or PrimeraAir have or had.
RyanAir may also be able to look at the potential for LaudaAir to take up a challenge it wouldn’t want to run under its own brand.
The Latvian and Danish AOC of the primarily Icelandic owned PrimeraAir will remain for now with its parent Primera Travel Group, which hasn’t been affected by the airlines demise so far.