ECA to file for bankruptcy

NEWS FLASH

European Coastal Airlines (ECA), Europe's first modern scheduled seaplane service based in Croatia, has begun pre-bankruptcy proceedings in Split a year after suspending operations. Despite plans to resume flights this summer, the airline's pre-bankruptcy process is expected to be similar to that of chapter eleven in the United States, allowing ECA to protect itself from creditors until it undergoes restructuring. ECA was forced to suspend operations after the Croatian Civil Aviation Agency revoked the carrier's Air Operator's Certificate due to safety concerns. The airline has disputed these claims and argued there was no foundation for its grounding. Following a fourteen-year battle with bureaucracy, ECA launched operations in 2014, connecting major cities and islands along the Croatian coast. In 2016 it commenced international flights. A part of its fleet had the ability to land on both water and paved runways, proving a lifeline for several smaller airports with little or no traffic. The company invested some 22 million euros in infrastructure development in Croatia, including the construction of eleven seaports. ECA received strong support from the German government and the German Embassy in Croatia, but struggled with local policy-makers. The company had allegedly been asked for bribes by local authorities on a number of occasions in return for necessary permits. Last year, the airline let go of 140 employees as a result of its grounding.