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Evidence shows that low-cost airlines have been dealing with the recession better than their classic counterparts, because they are offering what customers want in a time of crisis – low prices. While the number of passengers carried by big airlines is declining, especially in the lucrative segment of business travelling, the decline experienced by the low-cost arilines has been smaller, while some have even managed to keep growing – Ryanair, Wizz Air and Norwegian Air Shuttle, to name a few.

Customers have turned their backs on traditional and more expensive airlines, according to easyJet, which is counting on more business travellers in the future as companies cut down on expenses.

The same trend is bad news for Austrian Airlines, according to Dimitrov. The economic slowdown in Eastern Europe came with a sizeable lag, but the expectations were that the decline would be felt during the summer, a forecast that came true, he said.

"Within the airline industry, the times of greatest threat also provide the moments of greatest opportunity," Dow Jones Newswires quoted Nick Kirrage, co-manager of investment fund Schroder Recovery Fund, which holds airline stocks.

Clearly, SkyEurope, founded in 2001, did not find a way to survive. Since launching commercial operations in February 2002, it did not post a profit and the recession dealt a deadly blow with rising fuel prices and falling demand. In June, the company sought and received creditor protection. In July, its passenger traffic declined by 37 per cent as customers fled. Unpaid airport fees prompted Vienna Airport to stop servicing SkyEurope in mid-August. On September 1, Bratislava Airport suspended flights and Prague Airport did the same a day later.

Slovak civil air administration rescinded SkyEurope’s licence and issued a temporary one for the duration of its restructuring, which also allows the company to carry out airline operations. This means that travellers have certain rights, such as the airline refunding tickets in the event of a flight cancellation, as well as requiring the airline to offer alternative flights, cover hotel stay costs and telephone charges. In case the company has not notified its customers on time about flight cancellation, the travellers have the right to seek damages.

SkyEurope’s bankruptcy came at a time when the decline in the number of airline passengers has been showing signs of slowing down. It could be the long-awaited light at the end of the tunnel that will fill the hole in the sky over Europe. Until then, analysts will continue to wonder who will be the next victim.

No panic
Most of the 114 passengers of the SkyEurope flight due to depart from Sofia on September 1 had been notified in advance about their flight cancellation, because they never showed up at the airport, Sofia Airport said. Some irate customers took out their frustrations on employees of Sofia Airport, in the absence of an airline representative, airport officials said.

After SkyEurope had to return four jets for failing to keep up with its leasing payments, the frequency of flights to Sofia deteriorated and arrival delays of more than one hour became routine. On August 22, SkyEurope customers had to wait eight hours at Sofia airport, with no reaction from the airline.

Until August 14, the Slovak airline carried out daily flights from Sofia to Vienna, but when Vienna Airport barred its jets from landing there, the flights arrived at Bratislava Airport and were ferried by shuttle to Vienna.

Kapital weekly, issue 35