Leisure Cargo files for bankruptcy after loss of big customer
GERMAN GSA Leisure Cargo, that had once had 14 leisure airline customers, has filed for bankruptcy following the loss of a major contract with TUI to the ESC Group, reports London's Air Cargo News
GERMAN GSA Leisure Cargo, that had once had 14 leisure airline customers, has filed for bankruptcy following the loss of a major contract with TUI to the ESC Group, reports London's Air Cargo News.
Tillmann Peeters of restructuring firm Falkensteg Restrukturierung said that the company has applied to the relevant insolvency court in Dusseldorf. Biner Bahr of White & Case Insolvenz has been appointed as trustee.
Other airlines listed as customers by Leisure Cargo include: Air Transat, Condor, Thomas Cook, Blue Air, Nordica and WDL Aviation.
Condor is part of the Thomas Cook group while WDL Aviation is owned by the same company as Leisure Cargo. A spokesman for Thomas Cook/Condor said: 'We are aware of the bankruptcy and we are evaluating our options.'
The situation will in all likelihood leave the airline with two options: wait for a resolution from the Dusseldorf insolvency court that allows Leisure Cargo to restart operations; or enter into an agreement with another GSA.
In the meantime, it is unlikely that the airlines will be carrying any cargo as there is no GSA selling on their behalf. Leisure Cargo was taken over by the Zeitfracht group in October 2017 when the previous owner, Air Berlin, filed for bankruptcy.