30
Jan 2012
Spanair last flight?
On January 28th 2012, Bloomberg published the news (the link) regarding Spanair SA, an airline company in the operation of scheduled and non scheduled passenger air transportation and founded in 1986 by SAS and the Spanish firm Teinver. The company stopped the flights and the final flight landed on January 27th. The airline company had the first signs of the failure since the last recession ended in 2009 and regional authorities are cutting spending to reduce debt as the nation struggles to deal with the euro area’s third-largest budget deficit. The company, at the moment is looking at options including seeking protection from creditors or filing for bankruptcy.
What did MORE ratings tell about the company in the period 2007-2009? Well, not very positive (below the ASKMORE Credit Report): The MORE ratings assigned are CC (Pathological), C and C (extremely pathological) in 2007, 2008 and 2009, respectively. The company’s solvency and profitability indicators were alarming in three years with “no return” levels. The company reached the highest loss value in 2008 as well as negative shareholders’ funds. The company recorded a sharp decline in the operating revenue in 2009 by almost 40%. The sector analysis part represents that the financial& economic results of the company in solvency, liquidity, profitability are interest coverage aspects all in risky levels within the same industry in comparison with its competitors.
Briefly, the company’s risky financial performance has been clear since 2007.
