Sterling Airlines Declares Bankruptcy and Leaves Passengers Stranded

Thousands of travelers have been stranded throughout Europe, following the collapse of Sterling Airlines, an Icelandic budget carrier. The airline has been going through some difficult times financially during the last several years. Until 2 months ago, they were owned by Northern Travel Group, which is a combination of Fons, Sund, and FL Group investment groups. During the middle of August, Sterling Airlines was bought by Palmi Haraldsson, Fons’ Chairman and a business tycoon in the Icelandic market, of whom also became the only owner.

Sterling Airlines declared bankruptcy after Haraldsson ran out of money, which adds Denmark’s second biggest airline in fleet size to the list of over 24 carriers who have ceased operations this year. They said that the rising price of fuel and the economic financial crisis left them with no other choice than filing for bankruptcy. According to Sterling Airlines, the plan of Haraldsson for providing enough capital for maintaining Sterling Airlines until 2009 was weakened by the Icelandic financial system’s collapse.

In a statement, Sterling Airlines said that they had conducted negotiations with many potential investors, but they were not able to make ends meet. The result is that they had not other option except filing for bankruptcy, the statement added.

Sterling Airlines had 6 flights planned for departure yesterday from the Gatwick Airport, which affected around 600 to 700 passengers. Five more flights that were suppose to arrive at the airport were canceled too, while the whole fleet of the carrier has been grounded. Sterling Airlines also isn’t going to be offering refunds for tickets that were purchased on their website, and the passengers who were stranded overseas have to find their own way home. They are, however, advising that passengers contact their credit card company or bank to find out if they are covered by insurance, as well as to make other arrangements for returning home.

Get more information about Sterling Airlines at: http://www.sterling.dk/