SkyEurope needs 30 million euro cash injection

SkyEurope is looking for investors who are willing to pump €30 million into the Bratislava-based discount carrier, in order to help it get through difficult economic circumstances and a winter season which is widely expected to be slower than usual. According to an article in the Telegraph, the significant of this plan is that SkyEurope is looking for a group of investors or another carrier to essentially buy it. As we reported on several occasions earlier this year, SkyEurope has experienced difficulty remaining profitable, partly as a consequence of stiff competition from its Hungarian-Polish rival, Wizz Air, but also western low cost giants, like easyJet and Ryanair.

Jason Bitter, SkyEurope’s chief executive, confirmed that his carrier is hoping to find an investor willing to pump €30 million into airline. York Global Finance, an equity firm, owns 29.9 percent of SkyEurope and has already agreed to inject €10 million, ahead of the difficult winter season. Bitter remains positive in spite of the challenges and said that it is entirely possible that SkyEurope may become profitable within a year. Michael O’Leary, Ryanair’s outspoken chief, however, thinks otherwise and he has suggested in the past that SkyEurope may not survive the current economic crisis, as well as the relatively high fuel prices.

Thank you to Alistair Osborne of SkyEurope for the initial report.

www.skyeurope.com