Spanair (Barcelona) is due to cease all operations tonight after Qatar Airways (Doha) declined to invest in the money-losing airline today. In addition, the regional government of Cataluna has also declined to inject any further cash into the airline.
Part owner, SAS Group, issued the following statement:
“The SAS Group has continuously informed that following the divestment of most of its ownership in Spanair early 2009, the SAS Group has had a remaining exposure of approximately SEK 1.8 billion.
Spanair’s Board of Directors has today decided to apply for bankruptcy. Due to the situation in Spanair, SAS has decided to make a write down of the outstanding debt and receivables on Spanair of approximately MEUR 165, as well as reserve MEUR 28 in guarantees and costs due to the bankruptcy. SAS ownership in Spanair is currently 10,9%, but the value of these shares has already been written down and are booked at 0 value. The write down will affect the SAS Group’s result as a non-recurring item and equity negatively by SEK 1.7 billion in total. As informed earlier, the effect on the SAS Group’s liquid assets is estimated to be limited to MSEK 200-300.
SAS Group will follow customary procedures as a creditor in the upcoming bankruptcy process.
As reported as of the third quarter, SAS has a financial preparedness of SEK 10.6 billion so the event will have a limited effect on SAS liquidity.
SAS will assist passengers to the extent practically possible.
SAS expects a positive result before non-recurring items for the full year 2011.”
Continental Airlines (Houston) and Spanair (Barcelona), both members of Star Alliance, yesterday announced they will begin codesharing on flights across the Atlantic and to destinations in Spain and Africa.
Effective on January 4, 2011, Continental will place its “CO” code on selected Spanair-operated flights between Barcelona and the following destinations: Alicante, Bilbao, Madrid, Malaga, Menorca, Palma de Mallorca and Valencia, Spain; and Banjul, Gambia. The airline will also place its “CO” code on selected Spanair-operated flights between Madrid and the following destinations in Spain: Alicante, Barcelona, Bilbao, Ibiza, La Coruna, Las Palmas, Menorca, Palma de Mallorca, Tenerife and Valencia. Subject to government approval, Continental will also place its “CO” code on Spanair-operated flights between Barcelona and Nador, Morocco.
At the same time, Spanair will place its “JK” code on Continental-operated daily non-stop flights between Newark and both Barcelona and Madrid.
Copyright Photo: Bernhard Ross. Please click on the photo for additional background information.
Spanair’s (Barcelona) flight JKK 5022 on August 20, 2008 operating from Madrid to Gran Canaria, crashed on takeoff. The airliner veered off to the right and into the ground while climbing immediately after lifting off from runway 36L at 1445 local time. The McDonnell Douglas DC-9-82 MD-82 with the registration of EC-HFP (msn 53148) was carrying 162 passengers and 10 crew. In the accident 154 people were killed, two were seriously injured and 12 were slightly injured.
The on-going investigation has discovered the central computer system used to monitor technical problems in the aircraft was infected with malware.
According to the linked article, an internal report issued by Spanair revealed the infected computer failed to detect three technical problems with the aircraft, which if detected, may have prevented the plane from taking off, according to reports in the Spanish newspaper, El Pais.
Airbus A320-232 EC-IPI (msn 2027) is the first machine of Spanair displaying the new corporate image. The aircraft was painted at Shannon and positioned to Palma de Mallorca on June 5 where it is pictured. EC-IPI's first revenue flight took place one day later from Palma to Hanover. Copyright Photo: Javier Rodriquez.
Spanair (Barcelona) has now introduced its first aircraft in the new colors. Previously the new owners had requested public suggestions on May 13, 2009 for the new design.