Why Primera air filed for bankruptcy

Now I know that there has already been a topic that says about Primera air filing for bankruptcy but this topic will focus on why the airline didn’t succeed
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A statement from the board said the airline had “no other choice than filing for bankruptcy” when it could not agree bridge financing with its bank. It said “several unforeseen events” had cost it significant amounts of money, including €10m to repair a plane suffering from corrosion and €20m to lease aeroplanes with crew after the late delivery of new aircraft.

Signs that the airline was in trouble came in August, when it said short-haul flights from Birmingham to seven European destinations would end on 3 September.

It had planned to start flying from Madrid to New York, Boston and Toronto next month from €149 each way.

Overall I think that Primera Air was trying to grow too quickly and in a way that was unsustainable.

Be sure to tell me what you think!
Also this is my first topic and I would appreciate some feedback! 👍🏻

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Yep I agree, they expanded too quickly, bought/leased new planes without a proper business plan and model which had contingency plans. The competition surely wouldn’t help and the marketing was a complete flop seeing as I wasn’t really aware of such an airline existing.

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Still sad about this 😔

They also entered a crowded market where trans Atlantic routes had already been established with budget airlines

They went too aggressive: they bought too many planes too fast, and too quickly, without a concrete business model and plan for the future. The great competition of low cost airlines in Europe (especially Norwegian) only fuelled the problem. Additionally, the only place I ever found out about them is a BBC article a few months ago. As a new airline, they needed to build their name as much as possible before their aggressive expansion. A small, but still contributing factor, was the delivery delays from Airbus on the new aircraft. If you had a good, well advertised, trusted airline (such as Norwegian) against a newcomer (Primera), even if the newcomer had lower fares, you would choose the trusted carrier any day.

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Having been on both their new A321neos and their old 737-800’s on the transatlantic routes, they seemed likea very nice airline. Plenty of legroom, low prices (but the economics checked out as far as I could dig up). Their fatal flaw was that airbus delayed the delivery of the A321neos by a few months, leading to Primera having to ancel 100s of flights out of Birmingham, and spend truckloads of non existant capital on leasing a fleet of 757s from National. This has been missed out of a lot of news articles, as well as the fact that the airline had been doing very well for the 14 years leading up to thus year, being financially safe and having a pretty good service. However, all the news articles seem to be twisting the blame off of airbus (due to the late delivery leading to loads of aircraft leasing cost and passenger compensation) and onto Primera, who just seemed to be in the wrong place at the wrong time. Sorry for my rant, but I thought the points were worth making. Also, airbus have lost out on their launch customer for the a321LRs and boeing have lost out on a few 737max9 orders.

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Manufacturers do offer compensation and given the delays have been in place pretty much since the project started delivering to customers I think it should have been all thought about in any contingency plans Primera air would have.

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