19 September 2008

SkyEurope seeks additional funding

Euopean low fares carrier Sky Europe is seeking additional finance after securing a 10 million euro loan.

The bridging loan was made available by 29.9% shareholder York Global Finance to help it operate through the winter.

But the airline, which operates from Austria, Czech Republic and Slovakia, is also looking for additional finance, believed to be up to 30 million euros.

International investment bank Rothschild has been appointed Ã¢â¬Åâœto explore strategic and financing alternatives in order to secure the long term future and success of the airline,Ã¢â¬~ a company statement said.

Sky Europe, established seven years ago, said the loan facility Ã¢â¬Åâœwill help support ongoing working capital and cash flow requirements for the winter flying seasonÃ¢â¬~.

The loan demonstrated YorkÃ¢â¬â¢s Ã¢â¬Åâœcontinued confidence in SkyEuropeÃ¢â¬â¢s long-term prospects as the leading low cost airline in central and eastern Europe with strong growing and strategic positions in Bratislava, Vienna and PragueÃ¢â¬~.

The airline operates 15 Boeing 737-700s on 76 routes to 41 destinations in 19 countries. It carried 3.7 million passengers in the past year. SkyEurope has flights from Birmingham, Luton and Manchester as well as Dublin and Cork.

by Phil Davies