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Primera Air ceases operations

"With a great regret we must inform you that Primera Air will cease all operations on the midnight of October 1st, 2018 and enter administration process, after 14 years of operations," the board of Primera Air says in the statement.

"This is a sad day for all the employees and passengers of Primera Air. The company has been working relentlessly during the last months to secure the long-term financing of the airline. Not being able to reach an agreement with our bank for a bridge financing, we had no other choice than filing for bankruptcy.

During the last 2 years, several unforeseen misfortunate events severely affected the financial standing of Primera Air. In 2017, the company lost one aircraft from operations due to severe corrosion problems, and had to bear the total cost of rebuilding, resulted in a loss of more than 10 million euros. 2018 began with a fantastic start of our low-cost long-haul project with a brand-new Airbus 321neo fleet, however due to severe delays of aircraft deliveries this beginning ended up being rocky and incredibly problematic: operational issues, cancelations of number of flights, loss of revenues are just few to mention. In addition, to fulfil our obligations in front of passengers, Primera Air leased in aircrafts and beared additional costs of over 20 million euros.

Weighting the potential losses due to future delivery delays, and the added exposure to our partners and lessors, and bearing in mind the difficult environment that airlines are facing now due to low prices and high fuel costs, we have decided to cease operations now, where it will have smaller effect on our clients, due to the timing of the year, rather than increasing the exposure. Without additional financing we do not see any possibility to continue our operations.

This is an enormous disappointment after the incredible hard work and dedication put into building the airline. Company wants to sincerely thank all its employees for their hard work and dedication, its clients for years of loyal support and its suppliers for their cooperation during the years."

CBR 2/2018 CONTENTS

CBR 1/2018 CONTENTS

CBR 3/2017 CONTENTS