Belgian charter operator City Bird was declared bankrupt on 4 October after a court battle with tour operator Thomas Cook, which pulled out of its planned BFr400 million ($9 million) purchase of the airline after last month's terrorist attacks. The Court of Commerce in Brussels ruled that Thomas Cook had to honour the contract or pay City Bird BFr25 million in damages for each day of further delay in the signing of the contract. Thomas Cook refused to comply and CityBird ran out of money on 4 October, resulting in the loss of 600 jobs and the return of its Boeing 737-800 fleet to the manufacturer. City Bird is responding by sueing Thomas Cook for breach of contract, demanding BFr1 billion in damages.
Source: Flight International
