European cargo carrier grounded after financial woes

Air Cargo Germany (ACG) has been suspended by the Luftfahrt Bundesamt, Germany’s civil aviation authority, after a snap audit revealed the airline did not have the financial resources to maintain competent operations over the next 12-month period, reports Air Cargo World. Despite assurances by airline chief executive Michael Schaecher that operations would quickly resume, the enforced grounding exposed ACG’s cash flow weakness. Under strict company law, it is illegal in Germany not to admit insolvency. Schaecher remains upbeat about the turn of events, stating: “Through insolvency proceedings, both management and shareholders envision to create an opportunity to restructure the company and restore operational activities.”