Earlier this week, months of speculation that Spirit Airlines (SAVE) would soon declare bankruptcy were confirmed by the airline.
The low-cost airline, struggling with $3.8 billion in debt, sent customers a letter saying it had filed for Chapter 11 protection after two proposed mergers: with JetBlue. (JBLU) and border airlines (FRONT) – failure.
The filing allows the airline to continue operating flights as usual while it looks for a way to refinance the debt.
And the filing showed Spirit immediately received $350 million in additional funding that the airline said would allow travelers to “continue booking and flying now and in the future.”
But Spirit is not alone in its financial woes: Another airline ceased operations and said it would file for bankruptcy.
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Another low-cost airline ceases operations
While Spirit's popularity in the United States among travelers on tight budgets still leaves it opportunities to emerge from bankruptcy proceedings, another low-cost airline that ran into financial difficulties is closing its doors.
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Estonian low-cost airline Nordic Aviation Group, better known under the brand Nordica, and charter flight provider Xfly have officially said they plan to file for bankruptcy.
Founded in 2015 and based in the capital of Tallinn, Estonian state-owned Nordica began operating a series of routes to nearby Nordic and Baltic capitals such as Helsinki, Oslo and Copenhagen, as well as other flights to European capitals such as Amsterdam and Paris. .
The airline's fleet included an Airbus A320-200. (EASY) and three Bombardier CRJ900ER (BDRAF) . Over the past few years, Nordic Aviation Group has also been leasing aircraft to other airlines or companies that need them under its Xfly brand.
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Nordica's turnaround faced a challenging road
“Nordic Aviation Group and
“This journey has been marked by immense efforts by the entire team to take the airline to a new and sustainable footing.”
Earlier this year, some observers had speculated that Lars Thuesen, the executive who led Danish airline Jettline out of bankruptcy in the mid-2000s, would replace Nordic Aviation Group.
While the airline said there have been some talks with “both parties showing goodwill,” they ultimately did not result in an investment offer.
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Some travelers reportedly received emails about canceled flights from Nordica in September.
Now, creditors and companies that leased aircraft to Nordic Aviation Group have been informed that the company is filing for bankruptcy.
“The potential investor informed us of its intention not to proceed with the privatization, as the associated risks were too high,” said Nordic Supervisory Board chairwoman Kadri Land. said in a statement.
“Accordingly, the Board of Directors informed the Supervisory Board of its intention to cease the operations of Nordic Aviation Group and Xfly and initiate the necessary procedures to declare bankruptcy.” The filing would reportedly be made in an Estonian bankruptcy court.
Baltic News Network reported that in October, Nordic Aviation employed 579 people, 286 of them based in Estonia.
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