Only one bidder for a comprehensive solution is left in the investor process for the insolvent airline Germania. At the same time, two concrete offers have been made for individual solutions, where maintenance and technical services are to be sold in separate. Negotiations around selling parts of the flight operations are also underway. The provisional insolvency administrator Rüdiger Wienberg points out that the search for investors needs to be finalized by the end of the month.
“We now concentrate our negotiations concerning a comprehensive package including flight operations, maintenance and technical services on only one bidder,” Wienberg said. The second bidder has left the investor process. “This is unfortunate, as we had made the most progress with this candidate,” adds the provisional insolvency administrator. “It all hinges on the remaining bidder being able to create the necessary preconditions for a takeover.” The third interested party is unlikely to accomplish this in such a short time frame.
The period when insolvency money is paid expires on March 31. As Germania does not have the funds to continue operations from its own financial strength, the investor solution needs to be finalized by then. “In a bidding process that we are forced to press ahead with rapidly, it is crucial whether the bidders can and want to keep up the pace,” Wienberg said. “Not even two months since Germania filed for insolvency are not a long time for making the decision to buy an airline.”
At the same time, Wienberg is pressing ahead with the negotiations concerning individual solutions, where maintenance and services of Germania Technik Brandenburg GmbH and Germania Flugdienste GmbH as well as flight operations for certain routes with the corresponding crews would be sold in separate to different investors. In this case, the buyers would have the best chances of being treated with priority when it comes to slot allocation. Transactions with individual solutions are much less complex, and need much less auditing and preparatory work than a comprehensive solution.
With regard to Germania Technik Brandenburg GmbH and Germania Flugdienste GmbH, two reliable offers have already been made. Contract negotiations are underway with the corresponding bidders aiming to get the draft contracts ready for signing in the next two weeks. At the same time, Wienberg is talking to several candidates with regard to the takeover of flight packages.
Germania Fluggesellschaft mbH (1,426 employees), Germania Technik Brandenburg GmbH (178 employees) and Germania Flugdienste GmbH (74 employees) had filed for insolvency on February 4, 2019.
Germania is an independent German airline with a history that goes back more than 30 years. The airline with the green and white logo carried more than 4 million passengers per year on short-haul and medium-haul flights. Up until its “grounding” on February 5, 2019, Germania offered connections from 18 departure airports in Europe to over 60 destinations within the continent, in North Africa and the Middle East. Reversing the common industry trend, Germania continued to offer complimentary snacks, soft drinks, magazines and a minimum of 20 kg free baggage allowance. Germania’s business model combined scheduled, charter and ad-hoc flights. Together with Bulgarian Eagle and the Swiss airline Germania Flug AG, Germania operated a fleet of currently 37 aircraft. Germania Technik Brandenburg GmbH is responsible for the company's aircraft maintenance. www.flygermania.com
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