CityJet Seeks Court Rescue After Lufthansa Blow

Key Takeaways

• CityJet entered examinership on May 8, 2025, due to losing Lufthansa’s key wet-leasing contract.
• CityJet’s net deficit reached €38.5 million with overdue lease payments as of February 2025.
• Irish examinership provides up to 100 days’ creditor protection to seek survival plans or business restructuring.

On May 8, 2025, CityJet, a major Irish airline known for its regional flights, took the step of entering a court-led restructuring process called examinership. This action follows a number of tough business problems, the biggest being the sudden loss of a key deal with a leading airline, Lufthansa. The impact of this move does not just affect CityJet itself, but also the many workers, partners, passengers, and companies that depend on CityJet’s day-to-day operations. This unfolding story sheds light on the challenges faced by small and medium-sized regional airlines in Europe 🇪🇺 these days.

CityJet’s court-led restructuring, known officially in Ireland 🇮🇪 as examinership, is not just a business matter. It also has an immigration aspect, as airline restructuring often leads to changes in staffing, flight routes, and service patterns. These changes, in turn, impact international travelers, those on work permits, and families living across borders.

Why Did CityJet File for Examinership?

The direct cause of CityJet’s latest crisis was the loss of a planned wet-leasing contract with Lufthansa. Wet-leasing is a common airline practice in which one company (such as CityJet) provides aircraft, crew, maintenance, and insurance to another airline (like Lufthansa), which then operates those flights under its brand. Such deals are vital for regional airlines, providing stable income and keeping their planes and staff in the skies.

In this case, when CityJet lost the chance to work with Lufthansa—just before the contract was set to start in autumn 2025—its business model suffered a noticeable blow. According to court documents, the airline was already facing overdue payments to its aircraft lessor EDC for both March and April 2025. As things stood at the end of February 2025, CityJet’s books showed a net deficit (more debt than assets) of €38.5 million. This means it had more bills to pay than money to cover them, and not enough cash coming in each month to fix the gap.

No airline can run like this for long. So, to avoid being forced by its creditors into an unwanted shutdown or breakup, CityJet chose to ask the Irish courts for protection, buying itself time to find a way out.

What Is Examinership, and How Does It Work?

For non-Irish readers, examinership is a unique legal process available only in Ireland 🇮🇪. According to Irish law, a financially troubled company can ask the courts to appoint a specialist, called an examiner, to step in. The main goal is to save the business if possible, instead of simply closing it down and selling off its assets. Once examinership begins:

• The company gets up to 100 days’ protection from legal action by creditors (the people and companies it owes money to).
• During this period, the examiner takes a close look at the company’s books and talks to everyone involved—from management and staff, to banks and lessors.
• The examiner’s job is to see if there’s any way to save the company by cutting debt, finding new backers, or making deals with creditors to accept less than they’re owed.
• No one can take away CityJet’s aircraft or force payment of bills until the examinership period is over.

At the end of the process, the examiner will report back to the court. If a solid plan comes together—for example, new contracts, new capital, or reduced debts—the court may approve that plan and let the company continue in a new, healthier form. If not, the company may have to close or sell off its assets to pay creditors as much as possible.

VisaVerge.com’s investigation reveals that this legal process was vital in allowing other airlines—not just CityJet, but also Norwegian Air—to reorganize during difficult times, especially in a business where missing a single contract can spell disaster.

Readers who want more details about examinership can find clear and up-to-date information directly from the official Courts Service of Ireland.

CityJet’s Previous Restructuring During COVID-19

This isn’t the first time CityJet has relied on Ireland’s examinership laws to stay afloat. When the COVID-19 pandemic hit in early 2020, nearly all European flights stopped almost overnight. Small airlines, many of which rely on short-term contracts and have high fixed costs, found themselves unable to cover the leases they paid for their aircraft and the wages of their crews.

Back then, CityJet entered examinership from April to August 2020. The outcome was painful: many employees lost their jobs, and the airline was forced to cut back its size and scope. However, by the end of the process, CityJet emerged as a tighter business, focused almost entirely on wet-leasing, a service where its aircraft and staff fly for other major European airlines under their brands. This restructuring may have saved CityJet in 2020, but left it very dependent on securing and keeping large contracts—like the one with SAS or, in the latest case, Lufthansa.

The Impact of Wet-Leasing on CityJet’s Business

CityJet doesn’t sell most of its tickets directly to the public. Instead, it operates using a model called ACMI (Aircraft, Crew, Maintenance, and Insurance), commonly known as wet-leasing. This means CityJet provides the plane (usually a CRJ900 regional jet), pilots, flight attendants, and takes care of all repairs and insurance. Airlines such as SAS or, in the past, Lufthansa, pay CityJet for these services rather than operating smaller planes themselves.

Wet-leasing arrangements have their strengths. They allow CityJet to focus on what it does best—operating reliable flights on behalf of others—while its partners fill the seats and handle marketing. However, this reliance comes with risks. Losing even one major contract can wipe out a large share of the company’s income at once, putting everyone’s jobs and future at risk.

Recent years saw CityJet invest in a newer fleet and work closely with SAS. Yet, as seen with the end of the planned deal with Lufthansa, one canceled contract can quickly threaten everything.

The Facts in Brief

To help readers see the whole picture, the table below lays out the main facts about CityJet’s current situation:

Industry Context: Regional Airlines Under Pressure

The trouble at CityJet is not an isolated case. Throughout Europe 🇪🇺, regional carriers face massive pressure due to rising costs, intense competition, and the risk of losing vital contracts. Many depend on leased aircraft, so they must keep flying frequently to pay for these leases. Fewer passengers or fewer contracts quickly lead to financial trouble.

Ireland 🇮🇪 has become a global hub for airline restructuring, in part because its examinership laws give airlines and other companies a real shot at survival. The regime allows breathing space and a chance to save both the business and jobs. It’s worth noting that airlines like Norwegian Air and previously CityJet have both survived thanks in part to this legal option.

What Lies Ahead for CityJet?

In the coming weeks and months, the fate of CityJet rests in the hands of its court-appointed examiner, the Irish courts, and the many creditors it owes money to. Here’s how the next steps may unfold:

1. Examiner’s Review: The examiner will look at CityJet’s finances and judge whether the airline has a real chance to continue operating if some or all debts are reduced or rescheduled.
2. Deal-Making With Creditors: The examiner, backed by the courts, can ask creditors (like lessors and suppliers) to accept partial payments or delayed payments. Creditors must decide if they’d prefer a smaller, later payment to losing everything if the company closes.
3. Search for New Contracts: CityJet will likely work hard to land new deals with European airlines, possibly even trying to regain trust with former clients or bring in new partners who need regional flying.
4. Possible Sale or Investment: If no solution is found, CityJet might look for a new owner or outside investors. Such deals may keep some version of the airline running, even if it means major changes to size, staff, or routes.
5. Staff and Immigration Impacts: For employees—many of whom may be immigrants in Ireland 🇮🇪—the uncertainty is tough. Job losses, contract changes, or the threat of layoffs all have financial and immigration consequences, especially for those whose right to stay in Ireland depends on having work.

Broader Impacts and What It Means for Travelers

When a regional airline like CityJet enters examinership, it doesn’t just affect the airline and its direct workers. The ripple effects reach:

• Passengers: Those who booked flights operated by CityJet for larger airlines like SAS could see changes to schedules, delays, or even canceled routes if the airline has to scale down.
• Immigrant Workers: Airlines often rely on international staff, from pilots to flight attendants and ground crews. Sudden layoffs or business closures can force foreign workers in Ireland 🇮🇪 to look for new jobs to keep their legal status or face possible return to their home countries.
• Suppliers and Local Communities: Local companies who provide services—catering, repairs, fuel—depend on CityJet’s business, so financial troubles can also hit them hard.
• Aviation Sector in Europe 🇪🇺: Each crisis highlights how delicate the business can be, and policymakers may need to look closer at whether more help or new rules are needed for these essential regional services.

Lessons From the Past and Thoughts for the Future

CityJet’s dependence on contracts with airlines like SAS and Lufthansa reflects a broader industry pattern. Many small airlines focus on providing key services for bigger, better-known brands instead of building their own customer base. This offers steady business when times are good, but leaves them exposed to the risk of sudden contract changes.

For workers and their families, especially those from outside Ireland 🇮🇪, the threat of layoffs comes with added worry. Losing a job may mean more than lost income—it could also put their future in the country at risk if their visas or residency depend on continued work.

As reported by VisaVerge.com, restructuring processes like examinership have so far allowed companies like CityJet and Norwegian Air to avoid total collapse, protect many jobs, and maintain some level of regional air service. Still, each new crisis raises questions about whether this model can work in the long run—or if a more stable business plan or government policy change is needed for the future.

Key Takeaways

CityJet’s recent filing for a court-led restructuring through the examinership process in Ireland 🇮🇪 underlines the many pressures facing regional airlines across Europe 🇪🇺. The loss of the Lufthansa contract, together with long-standing debts and missed payments, forced the company to seek urgent help. Examinership gives CityJet a chance—though not a guarantee—of survival, by providing time to try new deals, reduce debts, or seek fresh investment.

For the aviation industry and people who depend on these flights for connections, jobs, or immigration status, these events are a reminder of how quickly fortunes can change. The coming months will reveal whether CityJet can find a way to continue—and what lessons the sector and policymakers may learn from its troubles.

Readers interested in more about legal protections for troubled companies in Ireland and the route taken by CityJet can consult the official Courts Service of Ireland page on examinerships for direct, government-sourced guidance.

In the fast-changing world of regional aviation, following cases like CityJet’s offers a window into the challenges—and potential solutions—faced by airlines and the people who keep them running every day.

Learn Today

Examinership → An Irish legal process allowing struggling companies up to 100 days’ protection from creditors to seek survival or restructuring plans.
Wet-leasing → A contract where one airline provides aircraft, crew, maintenance, and insurance to another, which brands and operates the service.
ACMI → A business model in aviation meaning Aircraft, Crew, Maintenance, and Insurance; synonymous with wet-leasing services for airlines.
Insolvent → A financial state where a company’s liabilities exceed its assets, unable to meet debt obligations as they come due.
Lessor → A company or entity that leases aircraft to airlines in exchange for periodic payments, often crucial to airline operations.

This Article in a Nutshell

CityJet, a major Irish regional airline, filed for examinership on May 8, 2025, after losing a vital Lufthansa wet-leasing contract. Facing €38.5 million in debt and missed payments, CityJet relies on Ireland’s examinership law for urgent protection while seeking new contracts or investors amid industry-wide pressures.
— By VisaVerge.com

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