Top 5: The Most Spectacular Airline Startup Failures
When startup airlines emerge, they often enter with much fanfare, surrounded by optimism and hope for a profitable future. Some, however, never quite live up to the hype, crashing down in spectacular fashion. Eventually, the incredible costs and slim profit margins of operating in the aviation industry catch up to them, ultimately leading to the complete collapse of business operations. Creating an airline is extremely difficult; we analyze five carriers that suffered spectacular failure soon after launch.
5 Air Italy
This airline, founded to compete with Alitalia in the Italian full-service network sector, first flew on 1 March 2018, connecting the Italian peninsular to various far-flung destinations across Europe and the globe. The carrier operated a fleet of Airbus A330 and Boeing 737 aircraft.
4 Kingfisher Airlines
This Indian airline first took to the skies in 2005 and controlled a 50% interest in Indian low-cost carrier Kingfisher Red. By the time of its collapse in 2012, the airline served over 120 destinations across the globe with a fleet of 39 aircraft. In 2011, the carrier had the second-largest share of India’s domestic aviation market.
The carrier reported losses throughout its entire existence, even more so after the acquisition of loss-making Air Deccan. Finally, overcome by high debts and lacking profitability, the airline ceased operations on 20 October 2012. Notably, the carrier’s disgraced chairman, Vijay Mallya, fled to London to hide from financial prosecution.
3 Wow Air
Commencing operations on 31 May 2012, Icelandic ultra-low-cost carrier WOW Air sought to revolutionize budget travel between North America and Europe by connecting travelers through Reykjavik. At its peak, the carrier served 27 destinations with a fleet of 10 Airbus A320 and A330 aircraft.
Despite two profitable years in 2015 and 2016, the carrier reported heavy losses in 2017 and began struggling with debt payments. While it looked as if American private equity firm Indigo Partners might save the carrier with a buy-out, the deal fell through, and the airline eventually folded on 28 March 2019. Now, Icelandic PLAY Airlines is attempting to revive the carrier’s business model and succeed where WOW failed.
2 Hooters Air
Likely the most bizarre and unexpected carrier to make this list, American restaurant chain Hooters briefly operated flights through charter carrier Pace Airlines. Founded in 2003, the airline eventually served 17 different destinations, mostly along the US East Coast, with a fleet of seven Boeing 737 and 757 aircraft.
Eventually, the airline collapsed in 2006, with the increase in fuel costs in the wake of Hurricane Katrina playing a major role in the airline’s decreased profitability. Ultimately, the restaurant chain’s idea of starting an airline with the company’s famous waitresses as flight attendants was not a viable business proposition, one that cost Hooters over $40 million.
1 Baltia Air Lines (USGlobal Airways)
Perhaps the most infamous among airline failures differentiates itself from the rest of this list in a number of key ways. Baltia was founded in 1989, primarily aiming to fly between New York and the Soviet Union. The carrier, over its 34-year existence, is yet to officially collapse and has recently rebranded as US Global Airways.
Over time, the story of Baltia has become even more bizarre to understand, with the carrier purchasing old 747s multiple times throughout the 90s and 2010s, but never managing even to receive FAA certification. Across the board, Baltia remains one of aviation’s greatest mysterious stories.
The airline, which has existed for over three decades, has yet to fly a single commercial flight. But today, the company continues to try, with a recent move to Michigan and a rebranding as USGlobal Airways as steps in the airline’s latest push towards legitimacy, a name which bears a bizarre level of similarity to mysterious UK startup Global Airlines.
#modernaviationindia #modernaviationtimes #aviation #airlines #airport #aircraft #services #faa #news #saf #software #technology #fuel #innovation #news