Jet Time files for bankruptcy

posted on 22nd July 2020 by Eddie Saunders
Jet Time files for bankruptcy

The airline Jet Time has filed for bankruptcy, but will re-emerge under the name Jettime A / S as a new Danish charter company.

“I am convinced that post-coronavirus there is room for a strong, independent and profitable Danish charter airline that can serve Nordic charter customers. The charter market is not expected to return to a profitable level until the summer of 2021. With the expiry of the general aid packages in July and August and without any specific aid to airlines, apart from SAS, there were no preconditions for continuing the old Jet Time A / S, unfortunately. The new Jettime A / S will be able to navigate more easily through a strongly loss-making winter 2020/21 season and be stronger for next summer,” says owner Lars Thuesen.

Jet Time planes have been grounded since March 23 and 95% of its employees have been let go. The carrier was left with fixed expenses of approx. DKK 40 million per month and no prospect of significant income until April 2021 at the earliest, and it was not possible to save the company without state aid. In the 2Q 2020, the company did receive almost DKK 80 million in salary compensation and subsidies for fixed expenses, but it wasn’t enough to sustain the operations.

Parts of the assets from the old Jet Time will be continued in the new company, including a few employees, including CEO Jørgen Holme, five B737 aircraft, technical platforms, as well as take-off and landing permits.

The company expects to be declared bankrupt within the next 24 hours.

https://newsroom.aviator.aero/jet-time-to-file-for-bankruptcy/