Styrian goes belly-up.

I think this says it all. Now remember people, the only way to make a small fortune in the airline industry is to start with a large one (according to mr Branson!)

Styrian Sprit collapses after funding effort fails
Victoria Moores, London (24Mar06, 13:26 GMT, 184 words)

Austrian regional carrier Styrian Spirit has filed for bankruptcy protection but prospects for the carrier appear bleak as it prepares to lay off all 152 staff members.

The Graz-based airline suspended operations today after failing to secure fresh financing.

Karnten Tourismus Holding is a key Styrian shareholder. Chief executive Reinhard Zechner says: “This is the end of the airline. People have lost their jobs and the airline does not exist [any more]. There is no more chance.”

Formalities for the airline’s entry into bankruptcy protection will be finalised on 27 March.

Styrian yesterday failed to secure €5 million ($6 million) in funding from 1% shareholder Grazer Stadtwerke, which owns Graz Airport, owing to the airline’s debt levels. Zechner confirms that this prompted today’s decision to stop the carrier’s operations.

Karnten Tourismus Holding has 42.85% of Styrian while 11.14% belongs to Solvenia’s Maribor Airport owner Prevent. Another 46.01% belongs to local Styrian private investors.

Styrian owns two of its aircraft – a Bombardier CRJ700 and CRJ200 – while its other three CRJ200 jets are owned by Bombardier Capital. The airline also has a Bombardier CRJ900 on order.

Source: Air Transport Intelligence news