Lithuanian ACMI operator Avion Express plans to seek creditor protection in an attempt to restructure its business and recover from the effects of the pandemic.
The company says it has begun “Chapter 11-type” financial restructuring procedures “to address the impact of Covid-19”, and will seek court protection from creditors in the coming weeks.
It has approached suppliers and creditors to request agreements to reduce its debts. The carrier says it will continue to operate as normal throughout the process.
“To manage the challenges brought by the pandemic of Covid-19, a lot of changes in the business were implemented during 2020,” states Avion Express chief executive Darius Kajokas. “As a further step, in addition to recent adjustments and optimisations, we decided to begin a financial restructuring and to seek protection against creditors of the company.”
This decision is aimed at “optimally co-ordinating the interests of our creditors, and ensuring the sustainable continuity of Avion Express’ activities”, he adds.
Cirium fleets data indicates that Avion Express has two in-service Airbus A320s and two A321s. An additional seven A320s and three A321s are listed as being in storage. The aircraft are leased from a range of lessors, including Deucalion Aviation Funds, Avolon, Castlelake, AerCap and Macqaurie AirFinance.