LEVEL Europe, an Austrian-based low-cost subsidiary of IAG, has ceased operations today. It filed for insolvency (a legal procedure in which a company or a person cannot pay back their debts, making them bankrupt) this morning. Having only started operations 2 years ago, this shows that the typical cycle in the aviation industry is repeating itself: nobody lasts longer than 10 years without some kind of support, like state aid. At the time of its demise, LEVEL Europe was operating 2 Airbus A320s and 4 A321s. This is living proof that the low-cost industry has met its end. Flying is now going to be a luxury instead of a daily mode of transport, thanks to the coronavirus. Are we going to revert back to the 50s, where only rich people get to travel? I think so, only that instead of flying in an old, creaking turboprop, they’ll be soaring through the skies in their Gulfstream 600s. I’m sure that, on top of this financial crisis, everyone will be able to pay all the upcoming CO2 taxes to save the planet. The days of low-cost travel are clearly outnumbered now, and I can foresee many airlines not making it through the next 5 years. LEVEL will announce its insolvency tomorrow. If you wish to express yourself, please write a comment in the comments section below. 18th of June 2020.
Aeronews24 