Spanish carrier LTE calls off charter flights, optimistic about restart

Spain's leisure carrier LTE International Airways has suspended flights on account of financial challenges, even though it plans to continue ACMI operations. It is hopeful of being able to resume charter flights.

Basically, an ACMI operation is a lease contract that includes the aircraft, crew, maintenance and insurance (ACMI), all charged under a set rate per block hour of aircraft operation. Leasing an aircraft under an ACMI agreement frees companies from the issues and delays that involve crew training and certification. LTE told Spain's ministry of public works that it was temporarily suspending its charter and scheduled operations on account of financial difficulties.

A statement on the company's website said that due to its financial situation, it is difficult for LTE to meet operational expenses during the coming days, and therefore it would have to suspend its charter and scheduled operations. 

The statement said that LTE is ''doing everything to minimise the impact of this suspension of services'' on its clients and providers. 

LTE is owned by Italy's MyAir holding company MyWay Airlines, and operates seven Airbus A320s.

LTE managing director Michael Harrington was quoted in the media as saying that the unexpected financial situation ''that happened yesterday'', LTE had to temporarily, ''and I emphasise temporarily'' suspend its charter operations.

LTE's ACMI work covers three of its A320s, and generates around a third of its revenues. The airline has not had its AOC suspended, nor has it filed for bankruptcy protection, the media quoted Harrington as saying.