Swiss charter carrier Hello has suspended all operations with immediate effect as it continues to seek to find a new investor to keep the business alive. The airline, established in August 2003 by one of the founding fathers of the modern regional airline business in Europe, Moritz Suter, had operated a fleet of McDonnellDouglas MD-90s on behalf of tour operators and travel agents for most of its existence, before refleeting with Airbus A320 equipment in recent years.
Hello suspended all flights at 23:00 on October 21, 2012 after efforts to recapitalise the business failed. With all four of its aircraft on the ground in Switzerland, the carrier was able to manage its suspension effectively, informing all tour operators of its intent to temporarily cease operations to enable them to seek alternative travel options for passengers.
In a statement Hello said the reason for the closure was, “the financial implosion of two large French customers, ever higher fuel costs and the strong Swiss Franc, which led to the cancellation of a large contract with TUI Germany”. It also highlighted that there is “an increasingly fierce competition” in the tourism business.
Pert of the blame has also been placed directly on the shoulders of one of the airline’s former employees, who it says led management to believe the business was in a much stronger position than was actually the case.
“There were serious booking keeping errors by the former Chief Financial Officer,” said Hello’s statement, revealing that the mistakes were identified following a detailed assessment of the airline’s accounts by his replacement after the member of senior management had left the company at the end of September.
“All the business figures supplied to the board and the management on a weekly and monthly basis turned out to have been incorrect,” said the statement. “Therefore, management and board were convinced that there was sufficient funding available. However, this was not the case.”
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