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The Telegraph

The biggest airline failures of all time, from Trump Shuttle to Laker Airways

Oliver Smith
Updated
British entrepreneur Sir Freddie Laker pioneered cheap air travel with his Skytrain to the United States in 1977 - 2010 Getty Images
British entrepreneur Sir Freddie Laker pioneered cheap air travel with his Skytrain to the United States in 1977 - 2010 Getty Images

Following the collapse of Primera Air, whose fleet of seven aircraft served 41 destinations, we look back at other notable airline failures.  

Monarch

2017

The collapse of Monarch last year sparked Britain's biggest ever peacetime repatriation. Around 100,000 of its passengers were abroad on October 2, when it ceased trading, while a further 750,000 people had paid for flights they were no longer able to take. It was by far the biggest UK airline failure in history.

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Until its collapse, Monarch served 43 destinations with a fleet of 35 aircraft. It flew 5.43 million passengers and employed 2,300 people in 2016, making it Europe's 26th largest airline (it carried more than 7 million in 2014). 

Air Berlin

2017

Just one week after the collapse of Monarch, Air Berlin, Germany’s second largest carrier and Europe’s 10th biggest overall (it flew 28.9m passengers in 2016), announced its closure. It had declared bankruptcy two months before after years of losses and the decision of its biggest shareholder, Etihad, to cease bankrolling it.

At the time John Grant, an aviation analyst, suggested more failures could be on the cards: "The competitive environment has become increasingly challenging for many airlines, with many established legacy airlines launching low-cost long-haul services and the continual growth in services from airlines such as easyJet, Ryanair and Norwegian. This has resulted in many mid-market carriers with relatively high cost bases being continually squeezed to a point of failure.

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"There are perhaps too many airlines in Europe today relative to the size of the market, with too many struggling to keep market share. In the United States, five major airlines provide some 80 per cent plus of scheduled capacity and that may be where the European market will head over time."

More failures were predicted when Air Berlin went under - Credit: GETTY
More failures were predicted when Air Berlin went under Credit: GETTY

Transaero

2014

Another of the biggest non-UK airlines to cease trading in recent years was Transaero, a Russian carrier with a fleet of 97 and 156 points on its route map. It carried 13.2 million passengers in 2014 but went under the following year after accumulating 3.9bn euros of debt. 

Transaero carried 13.2 million passengers in 2014 but went under the following year - Credit: getty
Transaero carried 13.2 million passengers in 2014 but went under the following year Credit: getty

FlyGlobespan

2009

The last UK carrier to cease trading before Monarch was Citywing, a virtual airline that operated under charter until March 2017, with a base at Isle of Man Airport, but the last major failure was FlyGlobespan, back in 2009. Based in Edinburgh, it had a fleet of nine aircraft, serving 24 destinations, and flew just over 2 million annual passengers at its height. When it went under, it had just 4,400 customers overseas, and 117,000 forward bookings – small fry compared to Monarch. 

The last major UK airline failure was FlyGlobespan, back in 2009 - Credit: 2009 AFP/AFP
The last major UK airline failure was FlyGlobespan, back in 2009 Credit: 2009 AFP/AFP

XL Airways

2008

In September 2008, XL Airways ceased trading after 14 years in business. It had a fleet of 18 aircraft serving more than 50 destinations, and carried 2.3 million passengers in 2007, but it collapsed – along with the other brands in the XL Leisure group – due to rising fuel prices (crude oil hit an all-time record of $147 a barrel that summer) and a growing global financial crisis. Around 85,000 holidaymakers were stuck overseas, and a further 200,000 had their bookings cancelled. 

Around 85,000 holidaymakers were stuck overseas when XL went under - Credit: 2008 Getty Images/Gerardo Mora
Around 85,000 holidaymakers were stuck overseas when XL went under Credit: 2008 Getty Images/Gerardo Mora

Zoom Airlines

2008

Founded in 2002, Zoom largely operated flights between Britain and North America with a small fleet of three aircraft. Unable to pay its fuel bills, it ceased trading in August 2008, leaving 900 passengers stranded on either side of the Atlantic. Its failure left 4,500 stranded abroad, while 60,000 forward bookings were lost. 

Silverjet

2008

Business-class carrier launched in 2006, billed as the “world’s first carbon-neutral airline”. Based in Luton, offering routes to Newark and Dubai, it only survived for two years, and its fleet never grew beyond three aircraft. 

Air Wales

2006

With a fleet of five, Air Wales flew scheduled regional services within the UK, as well as to Ireland, Belgium and France. It spent six years in the sky before folding due to "spiralling costs" and "aggressive competition" from larger low-cost airlines.

Swissair

2002

The national airline of Switzerland from 1931 until 2002 was once known as the "Flying Bank" because of its financial stability. 

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Over-expansion and the global economic downturn put an end to that, however, and in 2002 (with a fleet of 76 aircraft serving 157 cities) it ceased operations. At the time, a BBC correspondent said of the collapse: "Something did die in Switzerland that day: not just an airline but an image the Swiss had of themselves and, more importantly, of their business leaders."

Swissair's regional subsidiary, Crossair, went on to become Swiss International Air Lines. 

Sabena

2001

Belgium's flag carrier was founded in 1923, with services to the Belgian Congo starting two years later, followed by routes to Copenhagen and Malm? in 1931 and Berlin in 1932. Its first transatlantic flights touched down in 1946. 

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By 1982 it served 76 cities on four continents; this grew to 99 by the turn of the century. 

In 2001 it collapsed, however, becoming the first flag carrier in Europe to fail. Belgian politicians blamed Swissair, which owned a 49.5 per cent stake at the time and went under just a year later. 

Belgium's flag carrier failed in 2001 - Credit: GETTY
Belgium's flag carrier failed in 2001 Credit: GETTY

TWA

2001

TWA was owned by Howard Hughes for many years and at its height had a fleet of 190 aircraft serving 132 destinations. 

But it became saddled with debt in the 1980s, sold its London routes, underwent Chapter 11 restructuring in 1992 and 1995, and was further stressed by the explosion of TWA Flight 800 in 1996. 

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In 2001, it filed for a third and final bankruptcy and was bought by American Airlines.

Stylish TWA posters - Credit: GETTY
Stylish TWA posters Credit: GETTY

Debonair

1999

Worthy of mention if only for its terrific name, Debonair operated out of London Luton for three years, flying to Newcastle upon Tyne, Copenhagen, M?nchengladbach, Munich, Barcelona and Nice. It tried to position itself as an upmarket budget airline (offering cheap flights but with free snacks), a business model that ultimately failed. 

Trump Shuttle

1992

Donald Trump tried his hand at aviation. Trump Shuttle was launched in 1989 with a pledge to create “the best transportation system of any kind in the entire world.” He snapped up a fleet of ageing Boeing 727s from a struggling Eastern Air Lines, along with many of its disgruntled staff, and launched flights from New York to Boston and Washington D.C. “We took old 727s and spent a huge amount of money stripping them down to the frame and refurbishing them with chrome seat belts, maple bulkheads and faux marble bathrooms,” Bruce Nobles, president of the Trump Shuttle from October 1988 until June 1990, told The Globe and Mail in a 2011 interview. “It was a problem: we spent too much money on the airplanes.” 

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Nobles claims Trump paid $365m for the aircraft and landing slots, borrowing $380m from a consortium of banks and putting in around $20m of his own cash. Despite grabbing a decent market share, it could not thrive in a tricky economic climate while saddled with so much debt. It never turned a profit and in September 1990 the loans were defaulted and ownership of the airline passed to the banks, who eventually sold it to the US Air Group. “It worked out well for me,” was Trump’s assessment in an interview with The Street. “I ran an airline for a couple of years and made a couple of bucks. The airline business is a tough business, [but] I did great with it.”

Despite the airline's collapse, Trump thought he did well - Credit: GETTY
Despite the airline's collapse, Trump thought he did well Credit: GETTY

Pan Am

1991

Pan American Airways was the largest US carrier from 1927 to 1991 and ushered in the jet age when it launched the Boeing 707 in 1958. That was the first year in history when more transatlantic passengers travelled by air instead of sea. 

The experience of flying with Pan Am in the Sixties was a memorable one. Menus were vast, with starters, mains and desserts, as well as a wide range of aperitifs, fine wines and digestifs. Passengers were given proper cutlery and first class diners sat facing one another at tables of two or four. By 1968, its 150 jets flew to 122 airports in 86 countries (on every continent except Antarctica). 

 

Its fortunes dipped after the 1973 oil crisis, however, and by November 1978 it flew to just 65 airports. It lumbered on another decade or so, before declaring bankruptcy in 1991. 

Pan Am epitomised flying so-called golden age - Credit: GETTY
Pan Am epitomised flying so-called golden age Credit: GETTY

Air Europe

1991

Air Europe owed its demise to the collapse in tourism during the Gulf War. According to Abta, the travel association, holiday bookings in the run-up to the conflict were 60 per cent down on a typical year. During the war itself, they all but collapsed. The Foreign Office advised against travel to several dozen countries, including Egypt, the Gambia, Bahrain, UAE, Iran, Jordan, Israel, south-east Turkey, Tunisia, Morocco, Syria, Qatar and the Philippines. Around 120 travel agents and tour operators went out of business, including Britain's second-largest tour operator, Intasun, and its airline, Air Europe. 

Capital Airlines

1990

The self-styled "Yorkshire International Airline" was the first to be based at Leeds Bradford Airport, but ceased trading after just three years in the sky. Its MD, Adrian Thompson, went on to work at Air Wales. 

Laker Airways

1982

British entrepreneur Sir Freddie Laker pioneered cheap air travel with his Skytrain to the United States in 1977. His first London-New York flight was a third the cost of estabished carriers. The British public, keen to enjoy package holidays abroad, loved the airline. Rivals did not and actively worked to put it out of business. They succeeded. In February 1982, Laker Airways and Skytrain collapsed with debts of £264m, but not without a fight. The liquidators took brought an anti-trust action against 10 major airlines, seeking billion in damages. The action threatened BA's privatisation and eventually was settled out of court for £35m - Sir Freddie got £6m. At its height Laker Airways had 20 aircraft. 

Passengers learn that Laker Airways has failed - Credit: 2014 Getty Images/Express
Passengers learn that Laker Airways has failed Credit: 2014 Getty Images/Express
Best of the rest

Other recent failures include MAXjet, a US carrier that flew to Stansted, but ceased trading in 2007; Eos Airlines, which operated daily flights between London Stansted and New York but declared bankruptcy in April 2008; Oasis Hong Kong, which operated services from its base in Hong Kong to London Gatwick and Vancouver between February 2005 and April 2008; and SkyEurope, a Slovakian no-frills carrier, founded in 2001, which expanded to a fleet of 13 aircraft serving 30 destinations before its failure in 2009.

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Several other flag carriers have also failed since Swissair and Sabena opened the floodgates: Cyprus Airways, Malev (Hungary), flyLAL (Lithuania) and Slovak Airlines, to name a few. Alitalia, the Italian flag carrier, went bankrupt last year but limps on.

It is clearly a tough business. According to the website www.protectmyholiday.com there have been a remarkable 268 global airline failures since 2007. Here they are in full: 

  1. 2018 Primera

  2. 2018 Skywork

  3. 2018 JetGo

  4. 2018 NextJet

  5. 2018 Nature Air

  6. 2018 Latin American Wings

  7. 2018 Pawa Dominica

  8. 2018 Polar Airlines

  9. 2018 Fly Viking

  10. 2017 Niki Air

  11. 2017 Darwin Airlines

  12. 2017 Air Berlin

  13. 2017 Island Air

  14. 2017 Royal Falcon

  15. 2017 Monarch Airlines

  16. 2017 GLO Airlines

  17. 2017 Rainbow Airlines

  18. 2017 Mega Maldives Airlines

  19. 2017 Wings of Alaska

  20. 2017 Citywings

  21. 2016 Tiara Air

  22. 2016 TransAsia Airways

  23. 2016 Seaport Airlines

  24. 2016 SAFI Airways

  25. 2016 Aero Contractors

  26. 2016 Fly Lapland

  27. 2016 Air Pegasus

  28. 2016 VLM Airlines

  29. 2016 Fly Salone

  30. 2016 SOL S.A. Líneas Aéreas

  31. 2016 Skywise

  32. 2015 SkyGreece

  33. 2015 Intersky

  34. 2015 Estonia Air

  35. 2015 Transaero

  36. 2015 Supreme Airlines

  37. 2015 Korongo Airlines

  38. 2015 Syphax Airlines

  39. 2015 Air Lituanica

  40. 2015 EuroLot

  41. 2015 SkyMark Airlines

  42. 2015 Hamburg Airways

  43. 2015 Cyprus Airways

  44. 2015 SkyTrans Pty

  45. 2015 TigerAir Mandala

  46. 2014 UT Air

  47. 2014 Moskovia Airlines

  48. 2014 Carpatair

  49. 2014 Krohns Air

  50. 2013 Haiti Aviation

  51. 2013 Link Airs

  52. 2013 Danube Wings

  53. 2013 Belle Air

  54. 2013 Flynonstop A.S

  55. 2013 Dagestant Airlines

  56. 2013 Dutch Antiles Express

  57. 2013 Saha Airlines

  58. 2013 Orbest Orizonia Airlines, S.A. (formerly Iberworld Airlines, S.A)

  59. 2013 Red Wings

  60. 2013 Armavia

  61. 2013 Bahrain Air

  62. 2013 Batavia Air

  63. 2013 OLT Express Germany

  64. 2013 Aerosvit Airlines

  65. 2012 Kuban Airlines

  66. 2012 JetLink Express

  67. 2012 Air Malawi

  68. 2012 1Time Airlines

  69. 2012 SOL Airlines

  70. 2012 Air Finland

  71. 2012 Skyways Airlines and City Airline

  72. 2012 Cimber Sterling Airlines

  73. 2012 Gabon Airways

  74. 2012 Air Zimbabwe

  75. 2012 Air Australia

  76. 2012 TAS-Air Pty

  77. 2012 Malev Airlines

  78. 2012 Czech Connect Airlines

  79. 2012 Spanair

  80. 2012 Cirrus Airlines

  81. 2012 Kentucky Skies

  82. 2012 Aeroperlas

  83. 2012 OLT Express

  84. 2012 Air Tran Airways

  85. 2012 Jetlite

  86. 2012 Aerosur

  87. 2012 Velvet Sky

  88. 2012 Norfolk Air

  89. 2012 Air Finland (Charter)

  90. 2012 Windjet

  91. 2012 Varig Logistica

  92. 2012 PLUNA

  93. 2012 Team Linhas Aereas

  94. 2012 Direct Air

  95. 2012 USA300 Airlines

  96. 2012 Mint Airways

  97. 2012 REDJet

  98. 2012 Tennessee Skies

  99. 2011 Astreaus airlines

  100. 2011 Avianova

  101. 2011 KMV Airlines

  102. 2011 Air Southwest

  103. 2011 Robin Hood Airlines

  104. 2011 Wataniya Airways

  105. 2011 2nd Sverdlovsk Enterprise

  106. 2011 Pyrenair

  107. 2011 Cargoitalia

  108. 2011 Pacific Blue Airlines

  109. 2011 Fly Oristano

  110. 2011 Comtel Airlines

  111. 2011 Prima Aero Tranporti Italiani

  112. 2011 Dubrovnik Airlines

  113. 2011 Fly Hellas

  114. 2011 Sky Express

  115. 2011 Moscow Airlines

  116. 2011 Albanian Airlines

  117. 2011 Lotus Air

  118. 2011 Dagestan Airlines

  119. 2011 Avial NV

  120. 2011 Lufthansa Italia

  121. 2011 Yak Service

  122. 2011 Gomelavia

  123. 2011 Mandala Airlines

  124. 2011 Transavia Denmark

  125. 2011 Sun d'Or International Airlines

  126. 2011 Air Cuenca

  127. 2011 Amsterdam Airlines

  128. 2011 Novosibirsk Air Enterprise

  129. 2011 Pamir Airways

  130. 2011 Atlantic Southeast Airlines

  131. 2011 Aviaenergo

  132. 2011 Tor Air

  133. 2011 Airstars

  134. 2011 Jade Cargo International

  135. 2011 Hewa Bora Airways

  136. 2011 Zambezi Airlines

  137. 2011 Aviasca

  138. 2011 Great Wall Airlines

  139. 2011 Coral Blue Airlines

  140. 2011 Naturelink Aviation

  141. 2011 City Airlines

  142. 2011 Continent Airlines

  143. 2011 Vildanden Airlines

  144. 2011 Air Mat

  145. 2010 Hamburg International

  146. 2010 Cyprus Turkish Airlines

  147. 2010 Iraq Airlines

  148. 2010 VIVA Macau

  149. 2010 Highland Airways

  150. 2010 Varsity Express

  151. 2010 Air Slovakia

  152. 2010 Quantum Air

  153. 2010 Interlink Airlines

  154. 2010 Air Jamaica

  155. 2010 Eurocypria

  156. 2010 Fly Direct

  157. 2010 Sun Country Airlines

  158. 2010 Region Avia

  159. 2010 Aviacsa

  160. 2010 Blue Wings

  161. 2010 Ghana Airways

  162. 2010 Viking Airlines AB (Sweden)

  163. 2010 Star1 Airlines

  164. 2010 Sky Service

  165. 2010 Mexicana

  166. 2010 PalmAir

  167. 2009 Air Comet

  168. 2009 FlyGlobespan

  169. 2009 Sky Europe

  170. 2009 East Star Airlines

  171. 2009 SkyAirWorld

  172. 2009 Skystar Airways

  173. 2009 Aviacsa

  174. 2009 PB Air

  175. 2009 Linus Airways

  176. 2009 FlyLAL

  177. 2009 Air Jamaica

  178. 2009 Jet America

  179. 2009 Primaris Airlines

  180. 2009 Silver Air

  181. 2009 CentralWings

  182. 2009 MacAir

  183. 2009 OzJet

  184. 2009 MyAir

  185. 2009 Kayala Airlines

  186. 2009 Indochina Airways

  187. 2009 Blue Wings

  188. 2009 Zambian Airways

  189. 2009 Bellview Airlines

  190. 2009 Caribair

  191. 2009 RAK Airways

  192. 2009 Air Tahoma

  193. 2009 Megantara Air

  194. 2009 Qiantang Airways

  195. 2009 Air Senegal International

  196. 2009 Kras Air

  197. 2008 XL Airways

  198. 2008 Boston Maine Airways

  199. 2008 OK Air

  200. 2008 Carib Aviation

  201. 2008 Futura

  202. 2008 Flightline

  203. 2008 Airlines Tonga

  204. 2008 Nova Air

  205. 2008 Alma de Mexico

  206. 2008 Aero Airlines

  207. 2008 Aero California

  208. 2008 Air Tanzania

  209. 2008 Inter Airlines

  210. 2008 Kras Air

  211. 2008 Community Airlines

  212. 2008 Domodedovo Airlines

  213. 2008 Air Bee

  214. 2008 Kyokushin Air

  215. 2008 Flysure

  216. 2008 GirJet

  217. 2008 Flyyeti Airlines

  218. 2008 Avolar

  219. 2008 Aladia Airlines

  220. 2008 BritishJet.com

  221. 2008 Freedom Air

  222. 2008 Yeongnam Air

  223. 2008 Angkok Airlines

  224. 2008 Aebal

  225. 2008 Hansung Airlines

  226. 2008 Ankair

  227. 2008 Aero Tropics

  228. 2008 Focus Air

  229. 2008 Freedom Air

  230. 2008 Jetride (Pinnacle Air)

  231. 2008 Sterling European Airways

  232. 2008 AIRUnion

  233. 2008 Swazi Express Airways

  234. 2008 Oasis Hong Kong Airlines

  235. 2008 Air Mauritanie

  236. 2008 Air Scotland

  237. 2008 City Star Airlines

  238. 2008 Silverjet

  239. 2008 Aeropostale

  240. 2008 Prima Charter (Fischer Air Polska)

  241. 2008 Club Air

  242. 2008 Mihin Lanka

  243. 2008 Skybus Airlines

  244. 2008 Coast Air

  245. 2008 ATA Airlines

  246. 2008 EuroManx

  247. 2008 Eos Airlines

  248. 2008 Alpi Eagles

  249. 2008 Cameroon Airlines

  250. 2008 Zoom Airlines

  251. 2008 Aloha Airlines

  252. 2008 Big Sky Air

  253. 2008 Pan Am 2

  254. 2008 Far Eastern Air Transport

  255. 2008 African Safari Airways

  256. 2008 Nationwide Airlines

  257. 2008 Champion Air

  258. 2007 Alexandair

  259. 2007 Air Ariatic

  260. 2007 LAB Airlines (Lloyd Aereo Boliviano)

  261. 2007 Slovak Airlines 

  262. 2007 European Air Express

  263. 2007 Air Wales

  264. 2007 Flywoosh

  265. 2007 Air Scotland

  266. 2007 O'Connor Airlines

  267. 2007 JetStream Express

  268. 2007 MAXjet 

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