newstodate.aero
Oct 05, 2018 (newstodate): Rather than displaying flights on airport monitors, the name of Primera Air is now figuring only on the agenda of the Danish courts handling the bankruptcy case, filed by the start of October.
What brought Primera Air Scandinavia and Primera Air Nordic down?
The official story:
-Reasons, I am sure, are many but very high cost for the aircraft with corrosion last year as well as the delays of our new Airbuses lead to too high costs for wet lease and cancellations which in the end became too much for the airlines. Our owner was working on securing financing but was not able to in the end, the company's CEO wrote to staff on October 2, 2018.
LinkedIn sheds some further light on the issue in a story, published by Eduards Toms, Primera Air CFO:
-The cost of the new expensive aircraft was not the reason for Primera's failure. Actually, the unit cost of a new A321neo on the long haul routes was lower than for any ageing narrow- or wide-body equivalent capable of flying similar distances. And Primera's load factors were above 90 percent almost from the very beginning of the new flight program, as it was much easier to secure high load factors for smaller capacity.
-In fact, the model was fully viable and most of Primera's long-haul routes operated by new A321neo aircraft became profitable already in the fourth month of operations.
-The real reasons for failure were not related to the selected model and, unfortunately, were of uncontrollable nature, Mr Toms writes.
Summing up, Primera's purse run dry of means to sustain unforeseen events - proving that the purse was obviously too small, anyway, to support the airlines' feverish expansion - especially on the North Atlantic market.
"Unforeseen events" that the management proved unqualified to manage...
What brought Primera Air Scandinavia and Primera Air Nordic down?
The official story:
-Reasons, I am sure, are many but very high cost for the aircraft with corrosion last year as well as the delays of our new Airbuses lead to too high costs for wet lease and cancellations which in the end became too much for the airlines. Our owner was working on securing financing but was not able to in the end, the company's CEO wrote to staff on October 2, 2018.
LinkedIn sheds some further light on the issue in a story, published by Eduards Toms, Primera Air CFO:
-The cost of the new expensive aircraft was not the reason for Primera's failure. Actually, the unit cost of a new A321neo on the long haul routes was lower than for any ageing narrow- or wide-body equivalent capable of flying similar distances. And Primera's load factors were above 90 percent almost from the very beginning of the new flight program, as it was much easier to secure high load factors for smaller capacity.
-In fact, the model was fully viable and most of Primera's long-haul routes operated by new A321neo aircraft became profitable already in the fourth month of operations.
-The real reasons for failure were not related to the selected model and, unfortunately, were of uncontrollable nature, Mr Toms writes.
Summing up, Primera's purse run dry of means to sustain unforeseen events - proving that the purse was obviously too small, anyway, to support the airlines' feverish expansion - especially on the North Atlantic market.
"Unforeseen events" that the management proved unqualified to manage...