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Primera Air Scandinavia

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Primera Air Scandinavia A/S
IATA ICAO Callsign
PF[1] PRI PRIMERA
Founded2003 (JetX)
2009 (Primera Air Scandinavia)
Ceased operations2 October 2018[2]
Operating bases
SubsidiariesPrimera Air Nordic
Fleet size7
Destinations41
Parent companyPrimera Travel Group
HeadquartersCopenhagen, Denmark
Key people
  • Hrafn Thorgeirsson (CEO)
  • Andri Már Ingólfsson (President & owner)
Employees1000
Websiteprimeraair.com

Primera Air Scandinavia A/S,[3] was a Danish airline owned by Primera Travel Group.[3] It provided scheduled and charter passenger services from Northern Europe to more than 40 destinations in the Mediterranean, Middle East and North America.[4][5] It ceased operations on 1 October 2018.[6]

The airline was originally founded in Iceland as JetX, before it was acquired by Primera Travel Group and renamed to Primera Air Scandinavia. In 2009/2010, operations were transferred to a newly founded Danish unit and the Icelandic air operator's certificate was subsequently cancelled. The airline also owned Primera Air Nordic, a Latvian subsidiary airline established in 2014.

History

[edit]
JetX McDonnell Douglas MD-82 in September 2004

Icelandic origins

[edit]

Primera Air Scandinavia began as the airline JetX (IATA: GX, ICAO: JXX) in Iceland.[7] The company was founded in 2003 and received its air operator's certificate in May 2004. Initially the airline flew a single McDonnell Douglas MD-82 but soon added a second one. Between July and October 2004, scheduled flights were carried out of Forlì in Italy.[8] Flights were subsidized by local authorities, but the operation was impaired by non-payment of subsidies and further issues.[9]

In 2006, Primera Travel Group, an Icelandic tourism operator with subsidiaries in several countries, bought a controlling interest[8][10] and Jón Karl Ólafsson was named chairman in 2008.[11][12]

Transition to Denmark and Latvia, short-haul expansion

[edit]

In 2009, Primera Travel Group launched Primera Air Scandinavia as a Danish subsidiary, initially equipped with a single Boeing 737 based at Billund Airport, operated by the Icelandic Primera Air. The same year, Primera Air Scandinavia received its own air operator's certificate from the Danish authorities to commence its own operations. Subsequently, the Icelandic unit was closed and all operations were transferred to the Danish airline in 2010.[13]

Initially, Primera Air Scandinavia operated charter flights for major Scandinavian tour operators, but gradually started selling surplus seats as "flight-only" tickets on some of the fixed charter flights in 2013. The continued success allowed Primera to increase both the number of routes and flight frequency, resulting in a mixed charter/scheduled carrier business model. In late 2014 Primera launched 10 new winter and summer direct flight destinations from Iceland, namely, Las Palmas, Tenerife, Alicante, Salzburg, Malaga, Mallorca and Barcelona, Bologna, Crete and Bodrum.[14]

The airline transitioned to mostly scheduled flight operations, although some flights combined charter and regular passengers, and separate full charter flight services were available.[15][16]

In August 2014 Primera Air Travel Group announced the founding of a new airline as Primera Air Nordic in Latvia, which would be run parallel to Primera Air Scandinavia. Simultaneously, a new Network Control Center was opened in Riga for overseeing all operational matters of the group's airlines. Hrafn Thorgeirsson was appointed as the new CEO of both Primera Air Scandinavia and Primera Air Nordic.[17][18][19]

On 26 October 2014 Primera Air Scandinavia launched weekly flights from Gothenburg and Malmö to Dubai (Al Maktoum) and Tenerife, from Helsinki to Fuerteventura and Las Palmas. On November 16 the airline commenced a new route from Keflavik to New York (JFK) after acquiring rights to serve the United States. Later that year the airline started four new weekly routes, which included Aalborg to Las Palmas, Copenhagen to Lanzarote via Billund, as well as Aarhus to Tenerife and Fuerteventura.[20]

In July 2014 Primera Air flew 155,000 passengers in 1,006 flights, with an average load factor of 91%.[21]

The major restructuring and consolidation had a positive impact on the airline. In 2015, the airline operated eight aircraft with a turnover of US$250 million, and earned more than 5.2 million euros in total revenue before taxes (EBITDA). During the first 8 months of 2016, the airline had earned 4 million euros with an estimate of 7.60 million by the end of the year.

In 2015, Primera Air Scandinavia signed agreements worth 30 million euros with several leading travel agencies in France for operating a series of flights with 2 aircraft from Charles de Gaulle airport to popular holiday destinations during summer.[22][23]

In February 2016, Croatian destinations Dubrovnik and Pula were added to the range of flight destinations.[24] In May 2016, the airline commenced regular flights from Billund to Nice and Venice.[25][26] Shortly afterwards, flights to Antalya were introduced. Later that year Primera Air announced the increase in frequency for existing destinations as well as new destinations (Milan Malpensa and Rome Fiumicino) from Stockholm for the summer season of 2017, which was done in an effort to strengthen its operations and presence in Sweden and in line with its plans for further fleet and destination range expansion.[27] Later that year Trieste, Almería and Lamezia Terme were added as destinations.

Summer 2017 saw the addition of routes to Kalamata, Ponta Delgada and Madeira.[28][5]

Long-haul flights and massive expansion

[edit]

In 2017, the airline decided to venture into the scheduled low-cost transatlantic market from 2018. Flights between North America and Europe at the time were a highly competitive market, but adapting low-cost operations on this market did not show any great success for other carriers. Norwegian Air Shuttle, once a profitable short- and medium-haul budget airline, aggressively expanded on the long-haul market leading to large losses.[29]

The long-haul debut was announced in July 2017, and initially consisted of services on six routes from Birmingham, London Stansted and Paris Charles de Gaulle to Boston and Newark. The services were due to start between April and June 2018 using brand-new Airbus A321neo aircraft to be delivered to the airline.[30] In February 2018, the airline announced one additional long-haul route from London Stansted, connecting it to Washington, D.C., from August 2018.[31][32]

The airline also scheduled medium-haul services from the UK, connecting Palma and Malaga from Birmingham and Alicante and Malaga from London Stansted. The routes were to be commenced in April and May 2018, using Boeing 737-800 aircraft.[33] Furthermore, the airline also expanded its 2018 leisure network from Scandinavia with flights to Athens, Kos and Zakynthos from Copenhagen, Billund, and Stockholm.[34] Primera Air also announced increased flight frequency for flights to its most popular destinations in southern Spain, and the pricing policy on these routes had allowed it to compete with the low-cost carrier Norwegian Air Shuttle.[35]

Brand-new Airbus A321neo were used for the long-haul transatlantic services.

The launch of transatlantic flights from the United Kingdom and France to the United States in the summer of 2018 was impacted by the late delivery of the planned Airbus A321neo fleet. In order to commence its routes, the airline had to charter a Boeing 767-300ER from EuroAtlantic Airways and a Boeing 757-200 from National Airlines.[36] Citing delivery delays by Airbus of its A321neo fleet, Primera soon cancelled all transatlantic operations at Birmingham Airport scheduled on or after 21 June 2018. Transatlantic flights to and from Birmingham were expected to resume in 2019.[37] However, in July 2018, Primera Air announced it would terminate all operations at Birmingham Airport by October 2018.[38]

In August 2018, the airline announced two new bases in Brussels and Berlin Tegel for 2019, using Boeing 737 MAX 9 aircraft. The announced routes were from Brussels to Newark in May 2019, and in June 2019, routes from both Brussels and Berlin to Boston and Washington, D.C., and from Berlin to New York JFK and Toronto the same month.[39][40] In September 2018, Primera announced two more transatlantic bases in Europe to open in 2019; one in Frankfurt and one in Madrid. The routes announced for Frankfurt were to New York JFK and Boston in June 2019, and to Montréal and Toronto in July 2019, while the routes announced for Madrid were to Newark in July 2019, and to Boston and Toronto in August 2019, also to be operated with the Boeing 737 MAX 9.[41][42]

Collapse

[edit]

The airline had struggled to run profitably for years, and although the airline achieved a profit in 2017, it was mainly due to the sale of aircraft.[43] The airline also paid over US$20 million to charter or wet lease aircraft due to the late delivery of its Airbus A321neo fleet, alongside other unforeseen expenses.[44] Unable to obtain further financing to accommodate the resulting losses, Primera announced in a statement dated 30 September 2018 that it would cease operations effective 2 October 2018, citing a poor financial standing from the write-off of an aircraft from corrosion, delivery delays of the Airbus A321neo aircraft and resultant wet leasing, and being unable to secure long-term financing.[2][45] The final flight to land was PF596 from Málaga to Copenhagen.[46]

From April 2018, the airline had canceled some flights; customers said that as of the date of bankruptcy they had not yet received promised compensation.[47] Neither passengers nor employees received advance notice of the shutdown, and many planes were in the air at the time of the decision. Some passengers learned that the airline was shut down while in line to board the plane.[6] Many people, including employees, were stranded at foreign airports.[48]

Despite the bankruptcy of its airline subsidiary, Primera Travel Group continued to operate its various travel agencies and tour operators in Scandinavia but changed its name to TravelCo Nordic in October 2018.[43] Still, the group faced huge losses due to the collapse of Primera Air. 2018 was closed with a loss of 156m DKK. This by far exceeded all profits made in previous years.[49] TravelCo Nordic subsequently folded in late 2020 in wake of the Corona crisis and ceased trading.[50]

Destinations

[edit]
Primera Air Boeing 737-700
Primera Air Boeing 737-800

Primera Air Scandinavia mostly operated return flights from its Scandinavian airports to popular holiday destinations along the Mediterranean coast of Europe and Africa, the Canary Islands, the Azores, Madeira, Bulgaria and Turkey, as well as custom charter flights to virtually any destination. The airline maintained seasonal summer and winter selections.[4]

The airline had launched transatlantic operations from April 2018, connecting France and the United Kingdom to Canada and the United States.

At the time of closure, the airline had served several routes, but further announced long-haul flights from Berlin, Brussels, Frankfurt, and Madrid never commenced.

Criticism

[edit]

Primera Travel Group's airlines were criticized for working conditions and alleged social dumping. Cabin crew working for the Primera Air Nordic unit were recruited through recruitment agencies, with the staff mostly originating from Romania, but based in Scandinavia. Wages were significantly lower than standard Scandinavian wages, and employment contracts included very limited payments in the event of illness and lacked paid vacation leave.[51]

Fleet

[edit]

At the time of bankruptcy and cessation of operations on 2 October 2018, the Primera Air Scandinavia fleet consisted of the following aircraft:[52][53]

Aircraft In service Orders Passengers Notes
C Y Total
Airbus A321LR 2 16 182 198 Originally launch customer.[54]
Were to be leased from AerCap, with deliveries in 2018.[52][54]
Airbus A321neo 5 1 16 182 198 6 were ordered, but only 5 were delivered.[52]
Boeing 737-800 2 1 189 189 1 was due secondhand from Air China in 2018 but was never delivered.
Boeing 737 MAX 9 18 TBA Original order for 16 with 4 purchase rights, with 2 purchase rights exercised.[55]
8 were to be leased from Air Lease Corporation.[56]
Deliveries were planned from November 2018.
Total 7 22

At closure, there were seven aircraft registered to Primera Air. A further seven aircraft were registered to subsidiary Primera Air Nordic, whose operations were fully integrated into those of the parent company.

Despite financial woes, Primera continued its ambitious expansion and accepted aircraft deliveries, with a Boeing 737-800, registered OY-PSJ, as the final aircraft to be taken into service. The aircraft commenced revenue services on 20 September 2018, just eleven days before the airline folded.[57] Further aircraft destined for the carrier were in production at the time the airline folded, including an Airbus A321neo that was fully painted and a Boeing 737 MAX 9 that was partially painted in Primera's livery.[58][59]

References

[edit]
  1. ^ "IATA - Airline and Airport Code Search". iata.org. Retrieved 1 November 2016.
  2. ^ a b "Primera Air Ceases Operations". Primera Air. 30 September 2018. Archived from the original on 1 October 2018. Retrieved 1 October 2018.
  3. ^ a b "Primera Air Airline Profile". CAPA - Centre for Aviation.
  4. ^ a b "Route Map - PrimeraAir". Primera Air. Archived from the original on 6 February 2017. Retrieved 24 May 2017.
  5. ^ a b "Transatlantic flights". Primera Air. Archived from the original on 12 September 2018. Retrieved 4 September 2017.
  6. ^ a b "Primera Air: Passengers stranded as airline collapses". BBC News. 2 October 2018. Retrieved 4 October 2018.
  7. ^ "Air Carrier codes (Sorted by Carrier Name)". Census.gov. United States Census Bureau. 11 January 2010.
  8. ^ a b "About: History". JetX. Archived from the original on 9 February 2024.
  9. ^ "Forlì, aeroporto: nuova tegola da 1,1 milioni di euro" [Forlì, airport: new 1.1 million euro tile]. RomagnaOggi (in Italian). 16 October 2008.
  10. ^ "Óttast að vera sagt upp hjá JetX" [Fear of being terminated at JetX]. Morgunblaðið (in Icelandic). Árvakur hf. 18 April 2008. Retrieved 2 October 2018.
  11. ^ "Jón Karl Olafsson new CEO of Primera Air". Primera Travel Group. 25 February 2008. Archived from the original on 6 August 2016.
  12. ^ "Jón Karl Ólafsson ráðinn forstjóri JetX/Primera" [Jón Karl Ólafsson appointed CEO of JetX / Primera]. Morgunblaðið (in Icelandic). Árvakur hf. 22 February 2008. Retrieved 2 October 2018.
  13. ^ "AOC Shopping, Social Dumping & Atypical Aircrew Employment: Primera Air" (PDF). ECA. European Cockpit Association AISBL. 13 March 2015. Archived from the original (PDF) on 29 July 2018. Retrieved 20 December 2018.
  14. ^ "Archived copy". Archived from the original on 2017-08-08. Retrieved 2017-02-23.{{cite web}}: CS1 maint: archived copy as title (link)
  15. ^ Krog, Andreas (11 November 2016). "Primera Air fortsætter ekspansion" [Primera Air continues to expand]. CHECK-IN.dk (in Danish). Travelmedia Nordic ApS. Retrieved 24 May 2017.
  16. ^ "Flights from Scandinavia to Vacation Destinations - PrimeraAir". Primera Air. Archived from the original on 3 November 2017. Retrieved 24 May 2017.
  17. ^ "Corporate Info - PrimeraAir". Primera Air. Archived from the original on 6 June 2017. Retrieved 24 May 2017.
  18. ^ "Archived copy". Archived from the original on 2017-08-08. Retrieved 2017-02-22.{{cite web}}: CS1 maint: archived copy as title (link)
  19. ^ "'Primera Air' Rīgā veido lidojumu vadības centru, bet tiešos lidojumus no Latvijas pašlaik neplāno" ['Primera Air' in Riga forms a flight control center but direct flights from Latvia are not currently planned]. DELFI (in Latvian). 25 August 2014. Retrieved 24 May 2017.
  20. ^ Drum, Bruce (7 December 2014). "Primera Air continues to expand from Scandinavia and Iceland". World Airline News. WordPress. Retrieved 24 May 2017.
  21. ^ "July 2014 was a record month for Primera Air". Primera Travel Group. 8 August 2014. Archived from the original on 19 August 2018.
  22. ^ "Archived copy". Archived from the original on 2017-09-13. Retrieved 2017-02-22.{{cite web}}: CS1 maint: archived copy as title (link)
  23. ^ Visnakova, Anastasija (10 February 2015). "Primera Air paplašina darbību no Parīzes" [Primera Air expands its operations from Paris]. travelnews.lv (in Latvian). Retrieved 24 May 2017.
  24. ^ Bradbury, Paul (21 February 2016). "The Swedes are Coming: Primera Air to Pula and Dubrovnik". Total Croatia News. Retrieved 24 May 2017.
  25. ^ "Primera Air begins Billund trio". anna.aero. 9 May 2016. Retrieved 24 May 2017.
  26. ^ "Primera Air Scandinavia to start scheduled Stockholm flights". ch-aviation. ch-aviation GmbH. 12 October 2016. Retrieved 24 May 2017.
  27. ^ Jarvis, Howard. "Primera Air to expand in Stockholm Arlanda - TTG Nordic". ttgnordic.com. Archived from the original on 24 February 2017. Retrieved 24 May 2017.
  28. ^ "Primera Air plans new charter route to Kalamata in summer 2017". Tornos News. 25 August 2016. Retrieved 24 May 2017.
  29. ^ Dagenborg, Joachim (15 February 2018). "UPDATE 3-Expansion pushes Norwegian Air to larger than expected loss". Reuters. Retrieved 12 December 2018.
  30. ^ Liu, Jim (20 July 2017). "Primera Air to start US scheduled service in S18". Routesonline. UBM (UK) Ltd. Retrieved 12 December 2018.
  31. ^ Calder, Simon (1 February 2018). "Primera Air launches flights from Essex to the White House". The Independent. Retrieved 21 April 2018.
  32. ^ "Primera Air Announces from Dulles International to London". Metropolitan Washington Airports Authority (Press release). 1 February 2018. Retrieved 21 April 2018.
  33. ^ Robertson, Edward (22 November 2017). "Primera Air launches UK Spain flights". TTG - News. TTG Media Limited. Retrieved 20 December 2018.
  34. ^ "Significant expansion in Greece". Primera Travel. 28 February 2018. Retrieved 12 February 2018.
  35. ^ Christensen, Ole Kirchert (6 December 2016). "Primera Air udvider fra Aalborg Lufthavn" [Primera Air expands from Aalborg Airport]. CHECK-IN.dk (in Danish). Travelmedia Nordic ApS. Retrieved 24 May 2017.
  36. ^ "Primera Air adds transatlantic trio". anna.aero. PPS Publications. 21 May 2018.
  37. ^ "Airbus delivery delay forces Primera Air to suspend long-haul operations from Birmingham". Primera Air. Retrieved 7 June 2018.
  38. ^ Calder, Simon (31 July 2018). "Primera Air cancels all flights from Birmingham Airport". The Independent.
  39. ^ Mutzabaugh, Ben (21 August 2018). "$149 Europe fares: Primera Air adds three new U.S. routes". USA Today. Gannett Satellite Information Network, LLC. Retrieved 11 September 2018.
  40. ^ "Primera Air will fly from Berlin to New York, Boston and Toronto starting from €149" (Press release). Flughafen Berlin Brandenburg GmbH. 30 August 2018. Retrieved 30 August 2018.
  41. ^ Pallini, Thomas (5 September 2018). "Primera Air Goes Up Against Star Alliance with Opening of New Frankfurt Base". AirlineGeeks.com. Retrieved 6 September 2018.
  42. ^ Liu, Jim (12 September 2018). "Primera Air adds Trans-Atlantic service from Madrid in 3Q19". Routesonline. UBM (UK) Ltd. Retrieved 12 September 2018.
  43. ^ a b "Primera Air owner makes structural changes and rebrands his company". Turisti.is. 14 October 2018.
  44. ^ Spero, Josh (October 2018). "Low-cost airline Primera Air collapses after failing to secure funding". Financial Times. The Financial Times Ltd.
  45. ^ Youn, Soo; Merchan, Davi (2 October 2018). "Low-cost Primera Air abruptly shuts down, stranding crews and passengers". ABC News. Retrieved 4 October 2018.
  46. ^ International Flight Network [@FlightIntl] (1 October 2018). "Update: The very last Primera Air flight (#PF596) has just arrived at its home base Copenhagen Airport (CPH). Primera has now officially ceased flight operations and the airline's IATA codes are no longer valid. All flights have been cancelled flightradar24.com/PRI596/1e104e7b" (Tweet) – via Twitter.
  47. ^ Premack, Rachel (2 October 2018). "Low-cost carrier Primera Air is shutting down and filing for bankruptcy — here's my experience with one of their canceled flights and my attempts to contact them about the $1,400 they owe me". Business Insider. Insider Inc. Retrieved 3 October 2018.
  48. ^ M.R. (3 October 2018). "Primera Air goes bankrupt after a catastrophic summer". The Economist. Retrieved 4 October 2018.
  49. ^ "Dansk rejsekoncern i kæmpe tab - har skiftet navn og ejer". 28 June 2019.
  50. ^ "TravelCo Nordic A/S på konkurs - konkurser.dk".
  51. ^ "The FPU has sent a notice of dispute to Primera Air Nordic". Flight Personnel Union. 23 August 2018.
  52. ^ a b c "Fleet". Primera Air. Archived from the original on 4 August 2018. Retrieved 12 September 2018.
  53. ^ "Primera Air Scandinavia Fleet Details and History". Planespotters.net. Retrieved 12 September 2018.
  54. ^ a b "Primera Air to lease two A321neo(LR)s from AerCap". ch-aviation. ch-aviation GmbH. 21 June 2017. Retrieved 21 June 2017.
  55. ^ "Primera Air signs for two further Boeing 737 Max 9 airliners". Breaking Travel News. 7 December 2017. Retrieved 13 September 2018.
  56. ^ Morris, Keelan (11 May 2017). "Boeing, Primera Air Announce Order for Up to 20 737 MAX 9s". Boeing Media Room. Retrieved 24 May 2017.
  57. ^ Christnesen, Ole Kirchert (8 October 2018). "Primera-fly kun på vingerne i 11 dage" [Primera flies an aircraft for only 11 Days]. CHECK-IN.DK (in Danish). Travelmedia Nordic ApS.
  58. ^ Düber, Mathias (14 November 2018). "A321-251N, Primera Air, D-AVZR, OY-PAB (MSN 8195)". Flickr.
  59. ^ "7163 43339 N910BA 737-9 Primera Air NTU". Flickr. 25 September 2018.
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Media related to Primera Air at Wikimedia Commons