Sterling Airways to file for bankruptcy

http://news.yahoo.com/s/ap/20081029/...ing_bankruptcy

Sterling Airways to file for bankruptcy

Wed Oct 29, 12:48 am ET

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."

"Sue Veneer" a écrit dans le message de
...
http://news.yahoo.com/s/ap/20081029/...ing_bankruptcy

Sterling Airways to file for bankruptcy

Wed Oct 29, 12:48 am ET

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."

On 2008-10-29, Sue Veneer wrote:
http://news.yahoo.com/s/ap/20081029/...ing_bankruptcy

Sterling Airways to file for bankruptcy

This isn't a surprise. Sterling have reported massive losses for years,
have ****ed up their takeover of Maersk Air and have been changing
strategy every 6 months or so.