Effective September 30th, Romanian carrier Animawings suspended all operations as the airline entered a period of insolvency. The airline has also decided to ground its entire A220 fleet following the announcement.
What This Means For the Airline
The airline entering insolvency does not necessarily mean that it will shut down. As stated by the airline, operations are expected to resume on October 25th following a reshuffling of its schedule. The airline is seeking government protection as it works to restructure the company and better align its operations with current market conditions.
How Did This Happen?
The airline has cited several factors that have combined to negatively impact its financial position. Like many other airlines, Animawings has been affected by fuel price shocks and shifts in demand brought on by the conflict in the Middle East. While these factors alone have placed pressure on numerous airlines, they have been compounded by the carrier’s reliance on the A220.
It is well documented that the Airbus A220 family has experienced engine-related issues with its Pratt & Whitney GTF engines. In addition, ongoing parts shortages mean that when an issue does occur, aircraft can take longer to return to service. With lower aircraft availability, the airline began facing a growing number of lawsuits related to delays and cancelled flights. This was less of an issue in previous years, when Animawings operated a smaller fleet and schedule.
With this restructuring, the airline aims to return to leaner operations, reducing its exposure to the effects of the conflict in the Middle East while moving away from the operational costs associated with the newer A220s.
What is the Outcome?
The main outcome of this suspension will be to allow the airline to reevaluate its operations and make changes aimed at improving its position. One of the most significant changes will be the withdrawal of all A220s from service. In addition, the airline’s schedule will be trimmed to better reflect its operational requirements.
There is currently no definitive answer as to which routes will remain or be cut, but during the suspension, Animawings will evaluate which destinations will continue to form part of its network.
While the pause in operations is unfortunate for the airline, its employees and passengers, it represents a necessary step in restructuring its operations to better suit current market conditions. Following the planned resumption of flights in late October, Animawings will look to establish a more sustainable position within the market and navigate this challenging period.
