Court gives LCC breathing space
SkyEurope, one of the biggest low cost carriers in Central Europe, said it had been granted protection from its creditors.
The airline said in a statement that it has asked Bratislava District Court to give it time to carry out a re-organisation plan to "make the company more attractive for potential investors."
The court in the Slovakian capital is allowed under the law to give a company up to nine and a half months protection, Associated Press reported.
Jason Bitter, SkyEurope's ceo, said: "This is a good step for SkyEurope because it means we will be able to operate without any disruption while we implement reorganisation."
SkyEurope was founded in 2001 and has bases in Bratislava, Vienna and Prague.
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| Jason Bitter |
It flies to 33 destinations in 16 countries but has cut its "underperforming capacity" which has increased load factors.
But the carrier has seen a sharp drop in passenger numbers this year.
Its March figures showed a 39% drop from to 187,655 compared to 307,540 for the same month in 2008.
The April figures showed a 27.5% drop from 279,816 in 2008 to 202,839.
Up to January 2008, the airline carried 3.6m passengers year.