Small Planet Germany – part of Small Planet Group – has started a restructuring process as it says a rapid expansion strategy it has carried out hasn’t gone to plan.
The carrier said the German Civil Aviation Authority has no objections that the Air Operator’s Certificate (AOC) will remain in place and all scheduled flights of Small Planet Airlines will continue to operate as before.
Small Planet Airlines has been operating as an independent entity in Germany since the year 2015 and acquired the AOC in Spring 2016.
Small Planet Group chief executive officer, Vytautas Kaikaris said: “After Air Berlin went bankrupt last year, a niche emerged for the other carriers, and Small Planet Airlines Germany chose to grow more than double in size in order to take advantage of these newly opened possibilities in the market.
“However, the company struggled to manage this successfully due to several factors: late delivery of aircraft before the start of the summer season, shortage of crews in the market, unreliable sub charter aircraft and unforeseeable technical events had a devastating impact on a very intense schedule, which led to flight irregularities which in turn led to increasing cost burden.
“The financial losses incurred by the German company forced it to file for a restructuring process under the German law. Nevertheless, the company continues operations under restructuring.”
He added: “We all stand together in this period to achieve the best possible result out of restructuring for our employees, clients and partners.”
Small Planet Group’s fleet consists of 29 Airbus A320 and A321 aircraft. It is set to handle 3.9 million passengers in 2018.