EXEL group suspends flying. Bankruptcy imminent.

The EXEL Aviation group has suspended all flights.

A number of their suppliers are demanding EXEL to be declared bankrupt. Included among them are Eindhoven Airport and Denim Air. Total debts are around 12’000’000 euros (+/- 8’000’000 pounds). The debt is increasing daily by several 100’000s of euros.

The EXEL group will be going into “sureceance” (akin to a US-style chapter 11) soon. This means that debts will not have to be paid, but the suppliers have to agree with that. As long as the suppliers agree, EXEL group can stay active indefinately. (think for instance of Fokker, that continued operating for over a year before finally pulling the plug) It must be said though that 95% of these cases end up in bankruptcy.

In the Carribean, BonairEXEL and CuracaoEXEL might survive. These airlines where taken over by Dutch Eagle Express. There are strong rumours that DEE will sign an agreement with KLM to do feeder flights. This will give KLM yet more destinations in the Carribean, and will also free up KLM long haulers for other destinations.

Back in the Netherlands all EXEL flights have been suspended. Those flights that where still being done for KLM (KLM EXEL) have also been suspended. One of their planes (PH-XLO) was even temporarily impounded until debts where paid of.

KLM Cityhopper has taken over most of the KLM EXEL flights, but some flights will have to be cancelled until more equipment can be arranged. For instance, todays (01/02/05) morning flights from SXB was cancelled.

The EXEL group had already lost the contract to fly for KLM EXEL. These would have been some of the last flights before the contract will expire, but it would seem EXEL won’t even make it that far.

The EXEL group employs about 1’000 persons.

source:
You name it, I used it! Most of the mayor Dutch newspapers and sites including De Telegraaf and luchtvaartnieuws.nl.