Polish Low-Cost Carrier Grounds Flights

Air Polonia, Poland's low-cost airline, suspended all flights indefinitely on Sunday in a possible prelude to bankruptcy after an expected investor canceled plans to inject $10 million into the company, airline officials said. Without enough cash to continue running its operations, Air Polonia grounded its fleet of three aircraft in a move that affects about 50,000 people with tickets purchased for travel in the coming months, said Marek Slawatyniec, the company's sales and marketing director. Slawatyniec said that PlaneConsult, an Ireland-based company, pulled out of a deal on Friday. Unless it or other investors come forward, the company could face bankruptcy, Slawatyniec said. "We are suspending flights because we believe there is still a chance to finalize this deal," he said. Sky Europe, a Slovakia-based budget airline, will accommodate passengers with valid Air Polonia bookings whenever it has empty seats, said Sky Europe CEO Christian Mandl. Mandl said his company made that decision in an effort to maintain trust in budget carriers in Central Europe. "It's taken a lot of effort to build the low-cost market in this region," he said. "For a lot of people, (a low-cost carrier) was the first chance to ever fly in an airplane." He said he expected Sky Europe would be able to honor about 90 percent of those with Air Polonia tickets, but said that not all demand could be met during the holiday travel season. Air Polonia, previously a cargo and charter carrier, began running low-cost flights in December 2003. It operated flights between Warsaw and several foreign destinations, including Rome, London, Brussels and Paris. Officials from PlaneConsult could not immediately be reached for comment.