SkyEurope

SkyEurope was established in November 2001 and started operations on 13 February 2002 (domestic flight Bratislava-Kosice operated with 30 seat turboprop Embraer 120 ER Brasília). It was founded by Alain Skowronek (Chairman) and Christian Mandl (Chief Executive) and financed by EBRD, ABN AMRO and EU funds. Although some criticized the decision to base an airline in Bratislava, Mandl saw the effect that the low-cost carriers were having in Western Europe and envisioned it going a step further with a low-cost carrier in a low cost country. Mandl and Skowronek were aware of the catchment area of Bratislava Airport with the airport being located within a one-hour drive of Vienna, Brno and Győr and a catchment area of four countries (Austria, Hungary, the Czech Republic and Slovakia).{{Cite news| first=Christopher | last=Condon | title=SkyEurope: A Slovak Air Attack | date=9 September 2002 | url =http://www.businessweek.com/magazine/content/02_36/b3798108.htm | archive-url =https://web.archive.org/web/20021001181640/http://www.businessweek.com/magazine/content/02_36/b3798108.htm | url-status =dead | archive-date =1 October 2002 | work =BusinessWeek | accessdate =29 January 2008 }}

On 27 September 2005, the airline went public on the Vienna and Warsaw stock exchanges. The initial public offering price was 6 EUR, valuing the company at 120 million euro.{{Cite web|url=http://www.wienerborse.at/listing/aktien/newlistings/SkyEurope_Holding_AG.html |title=SkyEurope Holding AG |accessdate=29 January 2008 |language=German }} The IPO on the Vienna and Warsaw stock exchanges was the first by a central European low-cost carrier and the first by any Slovak company.{{Cite news| first=Robert | last=Anderson | title=SkyEurope Set For €100m IPO | date=15 September 2005 | url =http://www.ft.com/cms/s/0/54b9ea24-2587-11da-98dc-00000e2511c8.html | work =Financial Times | accessdate =29 January 2008 }} In the following weeks, share price decreased to 5 EUR/share. On 10 November 2005, investment bank CA-IB, member of HVB Group, issued a buy recommendation with target price 6.5 EUR. The bank assumed that first-mover advantage, a term often used during the previous dot-com bubble,Tiffany Ya-de Wong, Move Over, First Mover, Stanford University, 4 June 2003, [http://www-econ.stanford.edu/academics/Honors_Theses/Theses_2003/Wong.pdf available online] would "provide competitive edge".Thomas Paul, Marcin Jabłczyński, Low-cost carrier conquers CEE sky, CA-IB initial coverage, 10 November 2005, published on SkyEurope website

In 2006, SkyEurope announced it would cut ticket prices to minus 10 koruna, claiming to become the first airline that pays people for flying with it.{{Cite news| title=SkyEurope Says it Will Pay People to Fly With Them | date=29 October 2006 | url =https://www.usatoday.com/travel/flights/2006-10-19-skyeurope-minusfare_x.htm | work =USA Today | accessdate =29 January 2008 |archiveurl=https://web.archive.org/web/20080222223107/https://www.usatoday.com/travel/flights/2006-10-19-skyeurope-minusfare_x.htm |archivedate=2008-02-22}} The advertised negative price did not include fees charged to the passenger.{{Cite news| first=Adéla | last=Vopěnková | title=SkyEurope: Waiting in the wings | date=7 January 2008 | archiveurl =https://web.archive.org/web/20081031081050/http://www.cbw.cz/en/skyeurope:-waiting-in-the-wings/6547.html |url=http://www.cbw.cz/en/skyeurope:-waiting-in-the-wings/6547.html |archivedate=2008-10-31 | work =Czech Business Weekly}} 2007 marked a year of growth and change for SkyEurope. The airline opened a base at Vienna International Airport in March 2007, placing two new 737-700s operating sixteen routes.{{Cite news| title=Slovakia's SkyEurope Airlines to Fly from Vienna Next Year | date=19 December 2006 | url =http://www.iht.com/articles/ap/2006/12/19/business/EU_FIN_COM_Slovakia_SkyEurope.php | work =International Herald Tribune | accessdate =29 January 2008 }} In October 2007, SkyEurope closed its hubs in Kraków and Budapest, thus reallocating its aircraft to the hubs in Prague{{Cite news| first=Martina | last=Marečková | title=Discount carrier SkyEurope Lands in Prague | date=20 February 2006 | url =http://www.cbw.cz/en/discount-carrier-skyeurope-lands-in-prague-/2371.html | work =Czech Business Weekly | accessdate =29 January 2008 |archiveurl = https://web.archive.org/web/20080619004356/http://www.cbw.cz/en/discount-carrier-skyeurope-lands-in-prague-/2371.html |archivedate = 19 June 2008}} and Vienna.{{Cite news| title=SkyEurope to Close Bases at Krakow and Budapest from 28 October | date=3 September 2007 | url =https://www.forbes.com/markets/feeds/afx/2007/09/03/afx4076072.html | archive-url =https://web.archive.org/web/20081208025503/http://www.forbes.com/markets/feeds/afx/2007/09/03/afx4076072.html | url-status =dead | archive-date =8 December 2008 | work =Forbes | accessdate =29 January 2008 }}

In 2008, SkyEurope entered into a partnership with České dráhy creating the CD Sky alliance whereby SkyEurope tickets would be sold for a fixed price at railway stations in Brno and Prague.{{Cite news| title=Czech Railways to Sell SkyEurope Tickets at Stations | date=24 January 2008 | url =http://www.praguemonitor.com/en/258/czech_business/17588/ | work =Prague Daily Monitor | accessdate =25 January 2008 |archiveurl = https://web.archive.org/web/20080129030133/http://www.praguemonitor.com/en/258/czech_business/17588/ |archivedate = 29 January 2008}} In October – December 2008 SkyEurope transported 726,656 passengers, bringing the 12-month passenger total to 3.577 million.Passenger Traffic reports published monthly on skyeurope.com Its major Central European competitor Wizz Air claims to have carried 5.8 million passengers in 2008.{{Cite news| first=Robert | last=Mueller | title=Wizz Air aims to double fleet by 2011 | date=19 February 2009 | url =https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLJ37956320090219 | work =Reuters | accessdate =20 February 2009 }}

On 29 January 2009, MFD reported the airline cancelled hundreds of already booked flights from Prague.Jan Sůra, [http://ekonomika.idnes.cz/skyeurope-obmeni-svoji-flotilu-cast-letu-rusi-kvuli-male-poptavce-1d2-/eko-doprava.asp?c=A090128_113708_ekoakcie_pin SkyEurope obmění svoji flotilu, část letů ruší kvůli malé poptávce], MF DNES 28 January 2009{{Cite news| last=Czech Press Agency | title=CK Fischer a Senator Travel končí spolupráci se SkyEurope | date=19 March 2009 | url =http://www.financninoviny.cz/zpravodajstvi/zpravy/ck-fischer-a-senator-travel-konci-spolupraci-se-skyeurope/366371 | work =Finanční noviny | accessdate =19 March 2008 | language =Czech}}

The loss-making airline was seeking a new ownership structure with additional capital.{{Cite news| first=Hedi | last=Schneid | title=Luftfahrt: SkyEurope ringt um frisches Geld | date=1 December 2008 | url =http://diepresse.com/home/wirtschaft/international/434050/index.do | work = Die Presse | accessdate =10 December 2008 | language = German}}{{Cite news| first=Alistair | last= Osborne | title=SkyEurope seeks €30m to keep it flying this winter | date=23 September 2008 | url =https://www.telegraph.co.uk/finance/3057315/SkyEurope-seeks-30m-to-keep-it-flying-this-winter.html | work = Telegraph | accessdate =22 February 2009 }} The airline owed €25 million as a bridge loan to hedge fund York Global Finance II, due on 15 July 2009.{{cite web|url=http://www.ots.at/presseaussendung.php?schluessel=OTE_20090415_OTE0006&ch=wirtschaft|title=EANS-Adhoc: SkyEurope Holding AG announces the further extension of York loans, postponement of the publication of its annual financial statements}}

On 8 January 2009, leasing company GECAS ordered SkyEurope to return six Boeing aircraft due to financial problems.{{Cite news| first=Victoria | last=Moores | title=GECAS terminates lease on six SkyEurope aircraft | date=9 January 2009 | url =http://www.flightglobal.com/articles/2009/01/09/320876/gecas-terminates-lease-on-six-skyeurope-aircraft.html | work = Flightglobal | accessdate =11 January 2009 }} On 23 June 2009, SkyEurope went into administration having been granted protection from its creditors by the district court in Bratislava.{{Cite news| first=Kevin | last=Done | title=SkyEurope in administration | date=23 June 2009 | url =http://www.ft.com/cms/s/0/0b1ee1fe-5f8e-11de-93d1-00144feabdc0.html }} On 11 August 2009, SkyEurope was not allowed to fly into Vienna International Airport due to unpaid landing fees. Flights were handled at Bratislava Airport instead. SkyEurope filed opening of bankruptcy proceedings on 31 August 2009.{{Cite news| title=SkyEurope Holding AG: Suspension of all flights, Filing for Opening of Bankruptcy Proceedings of SkyEurope Airlines a.s. | date=31 August 2009 | publisher= Wiener Börse AG | url =http://wbag.archiv.apa.at/act/adhocdb/volltext.htm?doc=OTA_20090831_OTA0058&such= }} All flights were suspended with immediate effect on 1 September 2009.{{cite news|url=http://news.bbc.co.uk/1/hi/business/8231714.stm|title=Airline losses 'hit $1bn a month'|date=1 September 2009|via=news.bbc.co.uk}}

Due to passengers being stranded, Irish airline Ryanair announced on 1 September 2009 that they had launched rescue fares from Bratislava to Alicante, Barcelona (Girona), Brussels (Charleroi), Rome (Ciampino), Liverpool and London (Stansted). Flights were bookable until 20 September 2009 and certain flights till 17 December 2009. All flights were sold at a price of €25, one way, taxes and charges included.{{cite web|url=http://www.ryanair.com/site/EN/notices.php?notice=gops&code=090901-skyeurope-en-GB|title=Ryanair – SkyEurope Rescue flights}} Malév Hungarian Airlines also accepted people holding SkyEurope tickets on their flights for a discounted price. Malév was offering one-way travel options to a total of 12 cities for all those who held a SkyEurope air ticket and were unable to board their flight because of the bankruptcy proceedings launched against the company. The one-way air tickets were priced from €49.{{cite web |url=http://www.malev.com/companyinformation/pressreleases/article?Content=/Root/MalevContents/En/company-information/pressreleases/press-releases/2009/9/sky-malev |title=Malév |website=www.malev.com |url-status=dead |archive-url=https://web.archive.org/web/20090907223336/http://www.malev.com/companyinformation/pressreleases/article?Content=/Root/MalevContents/En/company-information/pressreleases/press-releases/2009/9/sky-malev |archive-date=2009-09-07}} Wizz Air also announced rescue flights for passengers stranded at Prague to Amsterdam, Bari, Bourgas, Brussels, Copenhagen, London (Luton), Milan (Bergamo), Naples, Paris (Orly), Rome (Fiumicino), Thessaloniki and Venice (Treviso) and from Bratislava to Rome. Flights were bookable until 15 September 2009 with certain flights available till 26 March 2010 for a total fee of €30 one way.{{cite web|url=http://wizzair.com/about_us/news/default.asp#wizen018|title=Wizz Air – SkyEurope Rescue flights}} Also Blue Air offered some rescue flights for passengers stranded in Bucharest to Vienna. The extra fee was €60.{{cite web|url=http://www.smartflying.ro/Oferte-Speciale/Viena|title=Oferte speciale - Blue Air – Smart Flying}}

The company never made a profit. At the end of March 2009, it had negative equity with liabilities two times higher than assets. Shares fell from its IPO level of 6 euro per share to a mere 20 cents per share at the end of January 2009.[http://en.wienerborse.at/ Vienna Stock Exchange] (SkyEurope is traded on "standard market continuous") On 30 September 2008, SkyEurope had overdue debt one million EUR on social insurance of its employees.{{Cite news| first=Katarína | last=Ragáčová | title=Sky Europe prišla o lietadlá | date=9 January 2009 | url =http://ekonomika.sme.sk/c/4255413/sky-europe-prisla-o-lietadla.html | work =SME | accessdate =12 January 2008 | language =Slovak}} The overdue debt gradually increased to €3.1 million at the end of June 2009.Sociálna poisťovňa, [http://www.socpoist.sk/dlznici-na-poistnom/ Overdue insurance payments] {{Webarchive|url=https://web.archive.org/web/20090907152930/http://www.socpoist.sk/dlznici-na-poistnom/ |date=7 September 2009 }}, exactly SKK 29 845 282 at the end of September 2008, SKK 49 651 856 at the end of December 2008, €2,355,595.94 at the end of March 2009 and €3,135,316.94 at the end of June 2009 At 31 March, SkyEurope was in technical default on its loan from Bank of Scotland.Report of the First Half (H1) of FY 2009, available on skyeurope.com

According to released Preliminary results for FY 2008, "material uncertainties exist regarding the ability of SkyEurope Holding to continue as going concern".Preliminary results for FY 2008, page 18, pdf available on skyeurope.com The company failed to publish audited results for financial year 2008 on 30 January 2009, management stated it expected the statements to be published by 17 February 2009 at the latest.[http://www.ots.at/presseaussendung.php?schluessel=OTE_20090130_OTE0015&ch=wirtschaft Delay of publication of SkyEurope Holding AG´s annual financial statements], 30 January 2009 On 17 February, SkyEurope announced further postponement, its management expected the audited results to be published by 15 March.Centre for Asia Pacific Aviation – Peanuts!, [http://peanuts.aero/low_cost_airline_news/airline/19030/59/SkyEurope+Holding+AG+further+postpones+release+of+annual+financial+statements+ SkyEurope Holding AG further postpones release of annual financial statements], 19 February 2009 On 15 March, SkyEurope announced a third postponement, its management expected the audited results for FY 2008 to be published by 15 April.[http://ots.euroadhoc.com/irmeldung.php?schluessel=OTA_20090315_OTA0004&ag=OTA Euroadhoc.com] {{Webarchive|url=https://web.archive.org/web/20090907110727/http://ots.euroadhoc.com/irmeldung.php?schluessel=OTA_20090315_OTA0004&ag=OTA |date=7 September 2009 }} {{in lang|zh}}

In June 2009, in an effort to avoid bankruptcy, SkyEurope announced a restructuring of the company and received bankruptcy protection from the Slovak courts (valid in the whole European Union). However, this failed and on 1 September 2009, the airline went into bankruptcy. In March 2010 liabilities were estimated up to 180 million Euro and assets less than 6 million Euro (including 0,5 million of cash).{{Cite web|url=http://ekonomika.sme.sk/c/5264646/po-skyeurope-ostal-dlh-vo-vyske-180-milionov-eur.html|title=SkyEurope debt: 180 million Euro|publisher=SME.sk|accessdate=1 March 2010|language=Slovak}}

Before the IPO, the largest shareholders were East Capital funds (16.72), EBRD (16.03), Christian Mandl (8.53), Peter Struhár (8.31), Alain Skowronek (8.19), DWS funds (7.79), GLG funds (7.17), Griffin funds (7.04), Euroventures Danube (6.68) and Foundation (6.39). Other investors held the remaining 7.15 share.Wiener Börse, [http://en.wienerborse.at/listing/aktien/newlistings/SkyEurope_Holding_AG.html SkyEurope Holding AG] {{Webarchive|url=https://web.archive.org/web/20081020070558/http://en.wienerborse.at/listing/aktien/newlistings/SkyEurope_Holding_AG.html |date=20 October 2008 }}

The company's last CEO (acting) was Nick Manoudakis, who replaced Jason Bitter. Members of the Supervisory board were its Chairman Iordanis Karatzas (since 1 October 2006), Jeremy Blank (since 1 October 2006), Christophe Aurand (since 1 October 2006, works as CEO of York UK Advisors), Hans Källenius (re-elected 30 March 2007, represents minority shareholders) and Josef In-Albon (since 30 March 2007).Annual Report 2007

SkyEurope operated 44 routes to 30 destinations in 17 countries.{{cn|date=March 2024}}

The SkyEurope fleet consisted of the following aircraft at that time of closure (as of 1 September 2009):{{cite web|url=http://www.ch-aviation.ch/aircraft.php?search=set&airline=NE&al_op=1|title=CH-Aviation – Airline News, Fleet Lists & More}}

File:Skyeurope B737, OM-CLB (3814996022).jpg]]

File:Boeing 737-7GL, SkyEurope Airlines JP6479638.jpg]]

In 2005 SkyEurope and Boeing finalized the order for four Boeing Next-Generation 737-700s worth US$220 million. The order includes purchase rights for up to 16 additional airplanes. This order followed

SkyEurope's order with leasing company GECAS for 12 Boeing Next-Generation 737s.{{Cite news| title=Boeing and SkyEurope Airlines Finalize Contract for Four Next-Generation 737s | date=19 June 2005 | publisher=Boeing | url =http://www.boeing.com/commercial/news/2005/q3/nr_050720g.html | accessdate =29 January 2008 |archiveurl = https://web.archive.org/web/20071230020540/http://www.boeing.com/commercial/news/2005/q3/nr_050720g.html |archivedate = 30 December 2007}}

In April 2007, SkyEurope purchased an additional five jets. SkyEurope had an option to order six more jets at the price set in a 2005 deal with Boeing to buy as many as 32 planes by 2011.{{Cite news| first=Sean | last=Carney | title=Slovak Budget Airline SkyEurope Orders 5 More Boeing Jets | date=12 April 2007 | url =http://www.marketwatch.com/news/story/slovak-budget-airline-skyeurope-orders/story.aspx?guid=%7BF8E141E9-23B7-46DD-8830-63A9E89516EC%7D | work =Market Watch | accessdate =29 January 2008 }}

At the end of FY 2008, SkyEurope had agreements with GECAS and Dubai Aerospace Enterprise for the operating lease of twelve Boeing 737 aircraft. At 30 September 2008, the Company failed to comply with stipulated financial covenants, such as liquidity and net worth thresholds. As a result, an event of default would allow lessors to terminate the leases with immediate effect and either claim damages and/or require immediate redelivery of the aircraft. On 24 November 2008, SkyEurope received a default notice from GECAS, as a result of late lease payments.Preliminary results for FY 2008, page 19, pdf available on skyeurope.com On 9 January 2009, GECAS terminated the lease of six aircraft and ordered SkyEurope to immediately return the 737s. On that day, several SkyEurope flights were delayed up to seven hours.Jan Sůra, SkyEurope přišly o deset letadel, lety mají zpoždění, Mladá fronta DNES, 10 January 2009, front page Three additional aircraft were returned to the lessor on 5 January 2009.

The airline operated four Boeing 737-700s aircraft,Czech Press Agency (ČTK), SkyEurope letos plánují pořízení tří nových letadel, 14 January 2009, [http://www.financninoviny.cz/zpravodajstvi/index_view.php?id=354884]Hospodárske noviny, [http://hnonline.sk/ekonomika/c1-33432180-skyeurope-ma-uz-len-styri-lietadla SkyEurope má už len štyri lietadlá], 26 January 2009 two ex-FlyLal Boeing 737-500 aircraft (on dry-lease from Avia Asset Management), two ex-United Boeing 737-300 and two Air Slovakia Boeing 737-300 (both on dry-lease). SkyEurope also used other airlines for its flights, mainly Air Slovakia,Agence France-Presse, Low-cost SkyEurope's air fleet shrinks by two-thirds: CEO, 14 January 2009, [https://archive.today/20120605025047/http://www.google.com/hostednews/afp/article/ALeqM5hMy2WZ4qXGTFzKotZEH24W2yfbxg] Austrian Airlines and Travel Service Airlines.[http://www.spectator.sk/articles/view/34697/10/skyeurope_sales_down_reports_paper.html SkyEurope sales down, reports paper], spectator.sk, 18 March 2009

SkyEurope had a buy on board programme, SkyEurope Delights; in that programme, food was sold while charter flights had complimentary meals."[http://www.skyeurope.com/en/information-services/on-board/skyeurope-delights.aspx SkyEurope Delights]." SkyEurope. Retrieved on 1 September 2009.

{{Reflist}}

{{Commons category inline|SkyEurope}}

• {{Official website|https://web.archive.org/*/www.skyeurope.com}} (at Archive.org)
• [https://web.archive.org/web/*/http://www.runwayinflight.com Runway inflight magazine] (at Archive.org)
• [http://www.airframes.org/fleet/esk SkyEurope fleet at airframes.org]

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