Bulgarian Airlines Are in for Mass Bankruptcies
Financial grants compensating for part of the lost revenues would greatly support the Bulgarian airline industry. Airlines are in dire need of additional support, Svetoslav Stanulov, Chairman of the Management Board of the Association of Bulgarian Aviation Companies, told BNR. The association‘s members are about 80% of the Bulgarian companies and maintenance bases.
European airlines' revenues compared to last year were down by about 73%. For Bulgarian airlines, revenues from scheduled flights decreased by about 65%.
"Charter carriers revenues have dropped overwhelmingly. On an annual basis, maybe by 85-90%. They do not have any flights in the last 4-5 months. Zero," Stanlov pointed out, clarifying that this does not allow companies to cover their routine costs.
"All financial reserves have already been used. Airlines have additional specific costs that cannot be saved," Stanlov said.
Bulgarian airlines employ about 4,000–4,500 people. So far, very small proportion of them have been made redundant because they are highly qualified staff.
"The high costs are related to the maintenance of machines operational condition. Airlines pay for parking, for maintenance, which is mandatory even when planes are on the ground. In addition, they pay 40% of the salaries under the 60/40 measure plus the cost of pilots training," Stanulov added.
"It is very possible that mass bankruptcies will start", warned Svetoslav Stanlov. In his words, it is no coincidence that there are financial grants in Europe and the US. "As an example, 20-30% of the decreased revenues are subsidized by the state. We don't hope for it anymore, but without such help it's extremely difficult for all of us to cope at the moment," the expert said.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » The French government has drawn up a Package of Measures and Sanctions to Save Electricity
- » German Households to Reduce Energy Consumption by at least 20% due to the Gas Crisis
- » Bulgaria's GDP reached a Record 68 Billion Euros last year
- » Tourists paid BGN 900 (EUR 450) for their Child's Treatment in Sunny Beach
- » Vestbee: VC Funding In CEE reached over €2B in the 2nd quarter of 2022
- » Head of Energy Commission: After August, the Price of Gas in Bulgaria will Decrease