Primera Air ceases operations

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 3, 2018 15:51

Primera Air ceases operations

On October 2, all operations by Primera Air ceased when its IATA codes PF and 6F were also suspended. Passengers were advised to contact their tour operators for repatriation, while others were offered cheaper flights from rivals to ensure people had a way to return home.

Primera Air, VLM, Small Planet, Azur and SkyWork have all ceased operations this year. Scope says that we should expect more casualties from rising fuel prices and overcapacity unless carriers find shelter through mergers or takeovers.

“All the airlines which recently ceased operations had fleets of fewer than 10 aircraft, making it hard to defend market share against larger groups with greater economies of scales unless they have narrow niches or work in cooperation with bigger rivals,” says Sebastian Zank, analyst at Scope Ratings.

While nice airlines are struggling, larger carriers too are feeling pressure on yields with even the mighty Ryanair posting reduce profit forecasts due mainly to strikes but also due to fuel and rising other costs.

Primera Air started out as a charter flight provider in 2003. In 2009, it entered the scheduled flight business. In 2016, it operated eight aircraft. In 2014, the company spun off a sister company in Latvia, called Primera Air Nordic, with a fleet of seven. Both of the companies ceased operation on October 2, with some planes still in the air.

A press release by the Primera Air stated  that the decision was motivated by the company’s inability to secure long term funding. Supposedly, low prices and high fuel costs made operating difficult. Primera also had such unforeseen troubles as having to totally refurbish a plane due to corrosion issues, which cost it €10 million, as well as plane deliveries that never materialised.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 3, 2018 15:51