Sterling Airlines (Denmark/Iceland) goes belly up
10-28-2008, 10:37 PM
#1
Gets Weekends Off
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Joined APC: Mar 2006
Posts: 3,333
Sterling Airlines (Denmark/Iceland) goes belly up
Sterling Airways to file for bankruptcy
Icelandic-owned budget carrier Sterling Airways A/S said it will file for bankruptcy Wednesday because of the financial meltdown.
COPENHAGEN, Denmark —
Icelandic-owned budget carrier Sterling Airways A/S said it will file for bankruptcy Wednesday because of the financial meltdown.
The airline, which is based in Denmark, said it was unable to raise financial support for a restructuring program due to the collapse of the Icelandic financial system.
"During the last few weeks, the management, board of directors, and the shareholder of Sterling Airlines A/S have been fighting a battle to keep the company alive," the airline said in a statement on its Web site on Wednesday. "Sadly, this has not had a positive outcome, and we have therefore decided to file for bankruptcy which will be done later today."
Sterling said it won't be able to refund passengers who have bought tickets from the company Web site.
The company, owned by Iceland's Northern Travel Holding, operated low-frills flights within Scandinavia, and between Scandinavia and a range of European destinations.
Sterling said it was hit in 2007 by a slowdown in the market and rising fuel prices, and the airline started accumulating large losses this year. It implemented a restructuring program to reduce the fleet and staff, which was planned to take full effect next year.
However, the funding for the program vanished when the Icelandic owner was hit by the crisis in the North Atlantic island's banking system.
"Negotiations have been conducted with several potential investors, but it was impossible to make ends meet," the airline said. "The inevitable result is that Sterling Airlines A/S has no option but to file for bankruptcy."
Icelandic-owned budget carrier Sterling Airways A/S said it will file for bankruptcy Wednesday because of the financial meltdown.
COPENHAGEN, Denmark —
Icelandic-owned budget carrier Sterling Airways A/S said it will file for bankruptcy Wednesday because of the financial meltdown.
The airline, which is based in Denmark, said it was unable to raise financial support for a restructuring program due to the collapse of the Icelandic financial system.
"During the last few weeks, the management, board of directors, and the shareholder of Sterling Airlines A/S have been fighting a battle to keep the company alive," the airline said in a statement on its Web site on Wednesday. "Sadly, this has not had a positive outcome, and we have therefore decided to file for bankruptcy which will be done later today."
Sterling said it won't be able to refund passengers who have bought tickets from the company Web site.
The company, owned by Iceland's Northern Travel Holding, operated low-frills flights within Scandinavia, and between Scandinavia and a range of European destinations.
Sterling said it was hit in 2007 by a slowdown in the market and rising fuel prices, and the airline started accumulating large losses this year. It implemented a restructuring program to reduce the fleet and staff, which was planned to take full effect next year.
However, the funding for the program vanished when the Icelandic owner was hit by the crisis in the North Atlantic island's banking system.
"Negotiations have been conducted with several potential investors, but it was impossible to make ends meet," the airline said. "The inevitable result is that Sterling Airlines A/S has no option but to file for bankruptcy."
10-29-2008, 09:06 AM
#4
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Joined APC: Jan 2007
Position: Airline Captain (cargo)
Posts: 78
Originally Posted by socal swede
Too bad,,have a few friends there. Now they are jobless right before christmas. They were both CA's with good hours so they might be able to get on somewhere else hopefully.
Socal Swede,
are you still with Ameriflight! have you uppgrade to BE-99 yet? I use to fly for Ameriflight.
Very sad about Sterling. There are a bunch of pilots in Europe without jobs. SAD,,but true
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