Air Moldova has submitted an application for an accelerated restructuring of the company to the court, which will save it from falling into bankruptcy.
Pending the court’s approval, the airline suspended all flights and ticket sales starting May 2.
The restructuring plan submitted by Air Moldova involves several methods it plans to use to overcome financial difficulties, accept investments, and restore the economic viability of the airline.
Air Moldova’s management is working yo ensure the airline survives, and all efforts carried out so far are aimed at saving it from bankruptcy. Accelerated restructuring is an opportunity for the carrier, being an international practice.
The procedure will allow stakeholders to invest in the airline. Investors are ready to ingest around $50 million in Air Moldova. However, investments cannot be made into the organization without completing the restructuring procedure, as it exposes the airline to an attack by existing creditors.
According to Air Moldova, the resumption of air services will be possible within three days of the court’s approval.
Although it is a private-sector airline, Air Moldova is a national carrier and market leader.
From Chisinau International Airport (KIV) it had been operating flights to over 16 destinations around Europe.
Air Moldova accused previous management of corruption and abuse of power.
The pandemic, which affected every passenger airline worldwide, led to an increase in the airline’s indebtedness with the lack of flights in 2020 and 2021 significantly affecting the airline’s profitability.
Russia’s invasion of Ukraine in 2022 also impacted its operations, with Ukrainian airspace closed. Russia was a significant market for Air Moldova, and the region was the airline’s most profitable.
The airline was operating a fleet of two Airbus A319 and one A320 aircraft.
