Sterling, Iceland, Astraeus and interesting times

[BOAC]

Fons Eignarhaldsfelag, an investment group run by Palmi Haraldsson and Johannes Kristinsson have now acquired the remaining 78% of Sterling. As you will see from the Press Release from Iceland Express (http://www.icelandexpress.com/about_us/press/2005/iceland_express_investors_make_sterling_move/), there appear to be significant plans. Interesting times for Astraeus, whose 2 737 NGs leave a Sterling wet lease next month to move to wet lease for Iceland Express. Palmi has replaced the American CEO of Sterling, Reza Taleghani with Almar Hilmarsson, well known to those 'longer serving' Astraeus pilots. I am looking forward to returning to the 'Northern Lights':)

This from another Aviation news source (http://findarticles.com/p/articles/mi_m0CWU/is_2005_April_15/ai_n13621351):
"Danish low-cost airline Sterling, recently acquired by Icelandic investors, is reportedly making plans for an aggressive expansion.

The company is to launch low-cost long-distance routes, with an aim to double the airline's size in the next two years, according to the Danish business daily Borsen.

The airline was reportedly expected to focus on destinations in the US, but routes to the Far East and South Africa are also under consideration."

[larshakan]

That pressrelease from Iceland Express being from 2005?!?!

[BOAC]

Hmm! Slightly red-faced as they were the top two Google hits.:\ That's a 'Pre-post checks' fail.:)

However, just change the dates of the press releases and we are fine. Try this one. (http://www.denmark.dk/en/servicemenu/news/businessnews/newceoforsterling.htm)

[colinwebster]

So what's the latest on Sterling, Iceland Express and Astreaus ?

Astreaus I gather doing well out of all the turmoil and covering for bankruptcies XL,futura etc.

Iceland Express ? Inbound sales should be doing well what with all those journalists and civil servants going up to Reykjavik but I presume oil is now costing them twice as much as it used to thanks to the collapse of the ISK.

Sterling, now supposedely for sale again (http://tinyurl.com/58by6e). Is it likely to be an airline buyer for merger, or new financial backers ? whose got any cash at the moment?! I see they have now stopped the EMA flights, is that just for winter or for good ?

[Count von Altibar]

I see bmi are looking to get their pilots onto the B757. Are a lot of Astraeus pilots contractors or are they just short of pilots? Seems like bmi are just trying to offload some surplus pilots...

[BYALPHAINDIA]

No AEU have never been short, As far as I know off?

Knew off a guy who did his rating on the 737 with AEU, No jobs available at AEU, Now flies Jet 2.:ugh:

Think BD are going thru a 'Midlife' crisis at the moment to be honest?

[loobysue]

Sterling Airways have filed for bankrupcy

[rumair999]

another sad day.
qoute from sterling.dk

Dear customers, employees and other stakeholders,

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. Sadly, this has not had a positive outcome, and we have therefore decided to file for bankruptcy which will be done later today.

Background

During the last three years, Sterling Airlines A/S has been through a lot of changes and since acquired by new shareholders in spring 2005 the company has taken on a merger with Maersk Air A/S. In 2005, the total loss of both airlines exceeded 800 MDKK and both owners wanted out one way or the other. Therefore, all jobs in both airlines were at stake and so was also the competitive landscape in Scandinavian aviation since only the presence of a low cost carrier would ensure healthy competition and pricing on the market.

The merger process started in the autumn of 2005 and lasted until mid-year 2006, and by that time we employed over 1,200 employees with far more job security than before, and we had expanded our route network to enable more customers in Scandinavia to travel for less money.

Our operation was progressing positively and our finances were improving considering the massive losses that had been encountered in the preceding years. In 2007, we were doing very well and saw that more and more customers were choosing Sterling, and we ended the year with a positive EBITDA (operational profit) for the first time in many years.

Oil and financial crisis

With the global financial recession that started in the autumn of 2007, Sterling by winter 2007 – 2008 was seeing signs of stagnation in the market. Significant fuel cost increases, and at the same time a planned heavy expansion of our activities, made us more exposed than we would have been otherwise.

By spring 2008, the airline industry was hit by decreasing demand and rapidly increasing fuel prices. That led to Sterling accumulating large losses. During summer and autumn the management of Sterling implemented a restructuring plan of the company resulting in a reduction in fleet and manpower, and a pull-out of a lot of loss-making activities, without compromising our services. The full effect of these actions were planned to have impact start of 2009.

To get the company restructured, the shareholder of Sterling gave financial support from the end of July 2008 to the end of September 2008 transferring 444.5 million DKK to the company. The plan was to continue financial support into 2009. On the 29th September 2008, the Icelandic financial environment started to collapse. Over a 3 to 4 weeks period, the whole financial system melted down, and that resulted in our shareholder being unable to continue his support to the company. Negotiations have been conducted with several potential investors, but it was impossible to make ends meet. The inevitable result is that Sterling Airlines A/S has no option but to file for bankruptcy.

Sterling Airlines’ trademark has always been excellent staff and service. Among the staff the Sterling spirit will continue to exist. We have made our mistakes over the years. But hopefully we have done more right than wrong, and at least we have made the market more competitive to the benefit of our customers.

Information to Sterling Passengers

Customers who have directly purchased their tickets on Sterling’s website will unfortunately not be refunded neither will their return flights. You therefore have to book your return flights with another airline company.

If you have paid for a flight by credit card, we advise you to contact your bank or credit card company to ask for a possible refund.

Customers who have booked their flights through a travel agency or tour operator should initially contact them.

Passengers who have booked their tickets through Sterling, but is flying with Norwegian, should contact Norwegian directly on one of the below phone numbers:

+47 21490015 (from outside Norway)

815 21 815 (from Norway)

Passengers currently staying abroad in hotels, or hiring a car through Sterling business partners, are still able to stay in their hotel or keep the hired car for the relevant period of time, as such services are paid for through our business partners and not Sterling. However as for your return flight, you will need to find alternatives for your final destination.

Please note that if you have booked your travel/hotel/car through a travel agency or tour operator, please contact them upon your return for possible refund of expenses for your return flight.

We understand that most travel insurance does not protect holders from airline insolvency but should you have taken insurance please contact your insurance company for clarification.

We will later put on a FAQ and hope that this will help you in this very unfortunate situation.


Sterling Airlines A/S

29th October 2008

[spider_man]

I think the Icelandic Fons acquired a 100% shareholding of Northern Travel Holdings in 2008? The Group includes Hekla, Denmarks biggest travel agency. This link provides some useful background to how they all came together: http://www.pressmeldinger.no/read.asp?recno=30386

[loobysue]

Fons Eignarhaldsfelag hf acquired the remaining 34.8% stake, which it did not aleady own, in Northern Travel Holding hf, a provider or travel-related services, from Fastleignafelagio Stodir hf. Terms were not disclosed.

[colinwebster]

Good luck to all involved from Sterling.
I think most people will agree it shouldn't have been you.

[FR-]

I wonder how long it will be untill Ryanair moves into some of the routes?

[Seljuk22]

DY with a new base at CPH, DY and NB had have a code-share so no big surprise

Norwegian overtager dele af Sterling - Transport & energi (http://www.business.dk/article/20081029/transport/81029121/)

[Charlie Roy]

The Norwegian base in Copenhagen will start with 6 routes and 5 more will start at a later date.

Norwegian Air ... ... said it would station two aircraft in Copenhagen from Nov 6 and fly six routes, including to Aalborg, Stockholm and Oslo. Other routes, including to London, Amsterdam and Rome, would open "shortly after", it added.
UPDATE 1-Norwegian Air to start 11 routes from Copenhagen | Industries | Industrials, Materials & Utilities | Reuters (http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLT11173020081029)

Amsterdam is an interesting new destination for Norwegian!

[airhumberside]

Sterling's owners own 51% of Astraeus

[Hamrah]

The former owners of Sterling own 100% of Astraeus and continue to support it.

[aztruck]

Nope.Making money. Waiting to expand as soon as it makes sense.

[exeng]

At the moment it is unlikely that Astraeus will go bust as the airline changed its business model completely some months back.

The Astraeus business model is now focused on ACMI operations rather than flying charter operations as it had done since its inception.

The overheads associated with ACMI are much reduced (like no fuel bills for instance) and it is easier to make a more realistic financial business plan.

Astraeus is managed in a very efficient manner still further reducing overheads.

Finally the company has substantial financial backing.


Regards
Exeng

[G-AWZK]

Have heard that there are some changes in management at Astreaus, anyone got anymore details?

[BOAC]

Where are Hamrah and Aztruck when you need them - answers on a postcard?

[Poltergeist]

Press releases from the company over the last weeks confirm that Mario Fulgoni stepped down as CEO of AEU and that was followed by the departure of IEX CEO Matthias Imsland. I understand that the timing was not connected. Daryl Deacon is now the COO at Astraeus and the Astraeus Chairman is temporarily CEO of both companies. That is about all I know:}