(Adds detail, background)
LONDON, June 18 (Reuters) - Austrian short-haul budget
carrier Level Europe plans to file for insolvency, it said on
Thursday, becoming the latest airline casualty of the
coronavirus crisis despite the financial might of parent IAG
.
The small airline, previously known as ANISEC, began
operating in 2018. It has six Airbus short-haul jets and is part
of IAG-owned Vueling Group.
British Airways owner IAG also operates a long-haul airline
called Level, which is separate from Level Europe, an IAG
spokeswoman said.
Level Europe blamed the COVID-19 pandemic for its move to
cease trading, joining a growing list of airline failures after
planes across the world were grounded for months during
coronavirus lockdowns.
Anglo-Spanish group IAG, which also owns Iberia and Aer
Lingus, said in April that it had 10 billion euros ($11.2
billion) of liquidity, but Chief Executive Willie Walsh has said
it is burning through cash as the crisis continues and has
warned that British Airways is "fighting for survival".
British Airways has said it needs to axe 12,000 jobs.
While IAG's airlines have used furlough schemes and accessed
government-backed loans, they are not in line for government
bailouts like European rivals such as Air France-KLM
and Lufthansa.
An administrator will be appointed once insolvency
proceedings have been filed, Level Europe said in its statement.
($1 = 0.8895 euros)
(Reporting by Sarah Young
Additional reporting by Kirsti Knolle
Editing by David Goodman)
International Airlines (IAG)
