Carpatair

[AVION]

Carpatair obtains protection under Romanian "Chapter 11"

Following application, on January 23, 2014, Carpatair obtained protection under Romania's insolvency law with the intention of following a process of reorganization.

The measure comes after a period of 15 years of notable presence on the scheduled air transport markets of Romania and the region. The reason for the respective decision is mainly related to the damages caused by anticompetitive behaviour of Timisoara Airport, presently investigated by the European Commission as well as Romanian courts and authorities, prejudicies to Carpatair being estimated at over 30 million Euro. During the reorganization Carpatair will continue a normal commercial activity while the management of the company stays with the team led by Nicolae Petrov, President & CEO, under the supervision of the appointed administrator by the court.

For the remaining winter season the flight schedule was downsized until end of March 2014, the company maintaining flights which are profitable to ensure an efficient reorganization. Respective measure will provide significant costs cutting during the most unprofitable season of the year for the airline industry. Between 2000 and 2013 Timisoara was the main base and The Airport of Carpatair HUB

Carpatair and its investments in Timisoara Hub

- 50.0 M Euro Swiss Investment in Airline, Aircraft Maintenance Plant, and Pilots School;

- Over 380 weekly flights on Timisoara to 34 different destinations;

- Over 500 000 passengers annually Carpatair transported at Timisoara Airport;

- Over 50% of revenues to Timisoara Airport (3.5 M Euro per year);

- Over 500 highly skilled jobs directly at Carpatair and other 300 at organizations and companies providing related services at Timisoara Airport, Police, Customs, Security Services, Catering;

- Euro 4.5 million per annum of salary incomes stimulating consumption of services and goods on the local market;

- Euro 3.75 million per annum of contributions to the State budget as taxes on Income, Social protection, Unemployment, Health, VAT, etc.

Source: Carpatair