Because the IAG subsidiary did not receive any state aid, it had to file for bankruptcy. This emerges from a publication by the Kreditschutzverband from 1870.

According to the credit protection association of 1870, the insolvent airline Level applied to the Korneuburg regional court to open bankruptcy proceedings. The liabilities amount to around 12,3 million euros, excluding ticket creditors. The value given by the credit protection association is quite low for airline bankruptcies. But there is a piquant detail in the bankruptcy application, because Austria only gave Austrian Airlines a financial support, while Level missed out and had to file for bankruptcy. 

129 creditors are affected, without taking account of ticket holders. Level Europe recently had 231 employees, 198 in Austria and 33 in the Netherlands. According to KSV12,3, the liabilities in the amount of 1870 million euros are offset by assets of around 8,4 million euros. 

The reasons for insolvency according to the information provided by the company in the application: "The debtor company started its business activities on March 01.03.2018st, 17.07.2018 and carried out the first operational scheduled flight on July 2019th, 2020. The debtor company was financed by the International Consolidated Airlines Group (IAG). Due to the difficult market environment, two further capital injections were required by the owner in 4 and 2019. The booking figures and sales developed as expected and according to plan in the fourth quarter of 19. However, this sales development was stopped by the COVID-12,3 pandemic. At the same time, cost-cutting measures such as B. Negotiations with suppliers and service providers, introduction of short-time work, elimination of non-mandatory costs, etc. implemented. Efforts to obtain state support or funding were unsuccessful. There was therefore no alternative to filing for bankruptcy. The liabilities currently amount to around XNUMX million euros. " 

The publication of the credit protection association from 1870 throws a very bad light on the Republic of Austria, as it supports the competitor Austrian Airlines with a three-digit million amount, but according to the level insolvency application this airline was denied access to state aid. Even though Chancellor Sebastian Kurz promised at the beginning of the Corona crisis that every entrepreneur would be helped. In practice, fallback appears to be a well-known scheme. According to reports, the IAG subsidiary would have met the requirements for receiving state guarantees or aid.

KSV1870 reports on the future of Level Europe: “According to the debtor bankruptcy filing, a continuation of the company is not possible due to insufficient liquidity. As a result, operations have already been discontinued. The company is therefore de facto closed and a reopening is not possible from today's perspective. The liabilities from flight delays and booked flights that could no longer be carried out are not yet included. The total amount of liabilities is currently still being clarified within the group. "