AIR TRANSPORT

Orange2Fly applies for bankruptcy

orange2fly-applies-for-bankruptcy

Orange2Fly charter flight airline has filed for bankruptcy.

The carrier that was set up in September 2015 with share capital of 200,000 euros has a fleet of four Airbus A320 aircraft, but in those six years of operation it has failed to strengthen its financial report.

In 2020 it had a negative net position of 7.8 million euros, with accumulated losses of 9.5 million euros and total obligations of 11.6 million euros.

“While the company was in a development stage for its fleet and its flying activity, the Covid pandemic forced it to post negative financial results again,” board chairman Pantelis Sofianos admitted in June.

“We believe those figures reflect the extraordinary and difficult situation the company has entered, and the general meeting of shareholders will have to decide whether or not the company will continue to operate,” he added.

The airline employed 200 people, and in 2019 it had carried 250,000 passengers. Early in 2021 the carrier had applied for an 8-million-euro loan from a systemic bank, but it was rejected as the company was considered to be unsustainable by the lender to be unsustainable.