Sterling Airlines bankrupt

[IB4138]

Business & Technology | Sterling Airways to file for bankruptcy | Seattle Times Newspaper (http://seattletimes.nwsource.com/html/businesstechnology/2008324127_apeudenmarksterlingbankruptcy.html)

[Finn47]

Sterling press release here, first in Norwegian and further down also in English:

Boarding.no : Sterling Airways er konkurs (http://www.boarding.no/art.asp?id=33675)

[merlinxx]

Very sad news, remember the ex Swiss DC6s very well:(

[Selfloading]

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That's a shame :bored:

[sky sailor]

I'm afraid this is not the last company with this kind of announcement...

[JJflyer]

Not the last company for sure. However this is Icelandic owned again. It seems that they have "Magic hands" up on that little rock as everything they touch turns into s.hit.

[Bigmouth]

Wasn't Sterling a bit like Sabena, a single profitable quarter in the past 30 years or so?

[autothrottle]

Still, sad news, especially for those young MPL holders who I'm afraid are going to find employment difficult to find.

[crewmeal]

Not forgetting Maersk Air of Denmark who helped save Birmingham Executive back in 1988 and looked after the operation with BA under a franchise agreement at BHX until they sold up to DUO in 2002/3.

Maersk then merged with Sterling but operated their 767 freight operation under their own flag to this day.

They will be truly missed - good luck to everyone concerned

[thepeacock]

Here is the message that was on the website before it went down...

Airline news from around the world: Sterling Airlines Bankrupt (http://tinyurl.com/6lueac)

Good luck to all involved

[oceancrosser]

Maybe someone can enlighten me, Sterling´s owners, Fons also "owns" through the virtual company Northern Travel Holding, Iceland Express and a part of Astraeus. How much is their shareholding in Astraeus anyone?

Sorry about Sterling, I liked them, especially Sterling of old. But this one was a different beast.

[Gnirren]

And as usual the press is only concerned with some stranded pax in CPH who now has to pay up 300 kr or whatever to get home again. Not a word regarding the staff who will now most likely have to go on government aid or find a new job abroad if they can.

Good luck everyone.

[Guttn]

Pax most likely to be stuck abroad due to the bankruptcy. Codesharepartner Norwegian, as well as SAS DK, are trying to pitch in to aid the pax.

News up north also reporting that salaries for October are not being paid:ouch::yuk::=

[Bergkamp10]

Really sad, flew them many times to STN years ago. They were a great company. I sincerely hope the staff manage to resolve they situation.

[CaptainProp]

Very sad indeed, but not too surprised I'm afraid. The company has been miss-managed for years now, under the current management it was just a matter of time......

Who will park jets first in CPH and ARN, RYR or EZY?

Good luck to all involved!

/CP

[Atlanta-Driver]

I am sorry to hear that so many people are out of a job again. Hope for blue skies and that something comes along.


AAI has been paying employees and contractors late for the last few months. So far the pay has been in and in full but the last one over 2 weeks late.
Cash flow problems sited and the Saudis notorious for not paying in time. This even as AAI receives most of its income in USD and a big chunk of employees paid in ISK reducing the overall employee costs. Not a good sign as to what is coming, time to lift the clutch I think.
Air Atlanta was purchased by management from the Avion Group that at one point owned the Excel Leisure Group. How was the company financed, where the loans in USD from Icelandic banks or from abroad? Is this why the pay is late? Banks can't finance the show anymore?

Looking at the economical situation in Iceland it just makes one wonder how anything commercial that has been financed from Iceland or anything to do with Iceland can survive?

Both Excel and Sterling are now out of business, one could say let down by their owners what is next? I am afraid that this will probably go much deeper than just aviation investments of the Icelandic so called "Business men". Watch out for large holdings owned by these people in and out of Europe. We have not seen the end of the Icelandic Economic disaster and the implications around the world yet.

What I really find surprising is that the Icelandic premier runs around the Nordic looking for more billions to cover for the stupidity they have started and a helping hand. Join EU and Euro. Yes now that things are really bad this is the life boat. Not so dear chaps, EU has enough poor countries to feed and help. No need for an Icebabwe. Get your act together and then perhaps.

It is a bit like I would run up a credit card bill on MC, pay that with Visa then pay the Visa bill with Amex and so forth until the limit comes. Then visit my neighbours asking them to pay my bills and credit card bills.

I am equally surprised about the lack of discussion about bringing those "Business men" in Iceland responsible for the chaos created by their total and utter mismanagement of funds into criminal justice and accountable for their actions.
This crisis has reached the magnitude and scale reaching far outside Iceland that the people in Iceland and their government should take severe measures to seek out and punish those responsible. If Iceland is unwilling to do that, then other governmets should take action against the culprits and their property.

[fireflybob]

Sorry to hear this news - hope the all the staff and crew manage to get employed again real soon.

[daria-ox]

Sorry to hear that :(

But they're not first.. and definately not last :(

[Viking101]

:(

My thoughts is with all the employees....

[The SSK]

First airline I ever flew with, Edinburgh-Copenhagen student charter in a DC6 in 1967.

Terribly sad.

[Re-Heat]

Fons also "owns" through the virtual company Northern Travel Holding, Iceland Express and a part of Astraeus. How much is their shareholding in Astraeus anyone?
A third I believe.

[Who 2]

its actually 100%.

[aztruck]

Thank goodness we are making a profit.

[captainspeaking]

I think that makes it 70 or 71 carriers that have folded this year. I am monitoring a further eight that are on life support. Not good.

[flan]

I worked with Sterling through the summer this year in both Stockholm and Oslo with Astraeus and we had a lot of fun. We made some great friends and I am very sorry to see the end of Sterling they were a good company to work with although even in our short time with them there were clearly some problems within the company. Now that Astraeus are in Iceland with IEX and 100% Icelandic owned what will the future hold- I guess we will find out at the end of the month when we are due to be paid.:confused:

Once again to all my friends in Sterling I hope you find new positions in the very near future.

flan

[panda-k-bear]

Sterling (and for that matter Astraeus) are both owned 100% by Northern Travel Holding (NTH) who, in turn, are controlled by the Baugur Group, who are Icelandic. Baugur Group has fingers in pies all over the place (they own the Iceland food store chain in the U.K., House of Fraser and Hamley's).

The question is what has actually happened? I hear rumours - and they are just that - that it was NTH/Baugur that defaulted on a loan for Sterling, not technically Sterling itself. Was the default caused by Sterling not making money, so Baugur/NTH decided to let it die? Or is Baugur itself shaky due to the Icelandic financial situation? If it's really Baugur that has the problem (or, indeed, NTH), then Astraeus isn't safe whether it's profit making or not - and it's that which worries me.

[NEW-CREW]

Do Astraeus still have 2 x 737's with Sterling? What will happen to these?

[Re-Heat]

then Astraeus isn't safe whether it's profit making or not - and it's that which worries me
I would not be so worried - if a loan is subparticipated at a holding company level, it remains securitised on the assets against which it was raised. Regardless of whether or not the loan defaults (though it is more likely to default as a result of not generating cash, than Bauger itself pulling it down with it) - if the business itself has value, the administrator would see value in keeping it operating.

Astraeus is, I believe, and commonly thought to be, generating cash in the current environment - and long may that continue. If a loan at the holding company defaults, while the ownership of Astraeus may change, I doubt that the operation itself would be at risk.

Needless to say, I do not personally have a clue as to the holding structure of the business - nor would I expect anyone who does to be commenting about it online!

[flan]

The two 737-700's are no longer with Sterling, we have been up in Iceland at KEF since early September working for IEX. The 700's are to be replaced with 800's in the new year or so we are told, or maybe A320's, but like "Stingray" (Anything could happen in the next half hour!)

flan

[Finn47]

The Swedish newspaper Dagens Nyheter reports that Sterling employees were due to be paid salaries for September tomorrow, Thursday, and now that Sterling is bankrupt they will actually lose two months´ wages. What´s more, Swedish citizens are not covered by Sweden´s salary guarantee fund system as the company they worked for is registered in Denmark. Tough times ahead for the affected.

(In Swedish only)

Personalen förlorar två månadslöner (http://www.dn.se/DNet/jsp/polopoly.jsp?d=3130&a=845584)

[panda-k-bear]

Interesting info, Re-Heat :ok:

Thanks for that - it allays the fears somewhat.

[fhegner]

Sad ...Stirling have been taken many freezing danes (including me) to the south for ages...even as far as Sri Lanka. As I remember it was started by mr. Krogager, a charismatic priest of the Danish Chucrh, as Tjæreborg Rejser, more or less as a hobby venture in the 60'ties. Eventually became one of the big players in charter buisness (together with Spies/Conair) in Scandinavia during the next 25 years. Lately as a low fare company with fiscal problems emerging. Many pax now have some uncertain hours on the destinations...... Wonder who's nexts?

Latest news 1600 UTC:

Norwegian interested in some of Stirlings destinations and aircrafts..

[relax.jet]

:\ Im afraid about future

[easymoney]

Who's next?????



Probably Sky Europe

[Mr HF]

ATLANTA DRIVER!
I fully agree about your statment!We have yet not seen the end of this mess.Icelandics should really take their act together and prosecute all criminal actors involved,even if it means family members.We all know by now that they are related to each other in one way or another!
Maybe going back fishing cod is not so bad after all!

[oceancrosser]

First airline I ever flew with, Edinburgh-Copenhagen student charter in a DC6 in 1967.

Terribly sad.

That was I believe about 2 "Sterlings" ago. There have been Sterling bankruptcies before. I am just not sure whether once or twice. The last time would have been in the early Nineties when it operated B727s and DC-8s, and a couple of 757s.

Someone will know the history better than me. But they ran a nice and small training center at CPH. Went there for both DC-8 and 757 sim.

[Chris Scott]

I also remember the Sterling name from the 1960s/70s, but didn't passenger with them till July this year: LGW-ARN-LGW. The return flight was on a B737-800; the outbound on a wet-leased MD-83 of Fly Excellent (based at ARN). Both flights were fine, and it's sad to see Sterling and their staff in trouble.

Can someone say how Fly Excellent fits into all this?

[Stone Temple Pilot]

The original Sterling of Krogager's was Sterling Airways. Almost a "Danish Legacy" carrier. A pioneer, a "sterling" airline, wonderful terms and conditions - a great airline to fly with and to work for.
Unfortunately that went bankrupt (without the interference of Icelandic investors). A sad day indeed....

Then came Sterling European - a start-up, based on the old Sterling. A "modern" airline - also in terms of truly adequate job terms and conditions, which saw alot of original Sterling pilots stay with whatever greener pastures they had found. This airline managed to stay a float during tough times and during good times - probably because there were no Icelandic investors involved yet... ;)

Then it was all re-invented and turned Lo-Co, including whatever that implies for job terms and conditions and for the travellers. We're in the 21st century and everything has to be .com - so Sterling goes Sterling.dk, Sterling.com and eventually merges with Maersk Air (another good Danish airline brand diluted into a Lo-Co, cheapskate product) and I believe the airline officially becomes Sterling Airlines with a multitude of colour schemes - aircrafts going green, blue and red and wearing hybrid Maersk/Sterling paintschemes. Even the staff groups are called "the blues and the reds" designating former Maersk (blue) pilots and Sterling (red) pilots.

And now it's over (again)...

I feel sad for all the staff involved - especially for alot of old schoolers in the Cabin from the original Sterling Airways who have been loyal since the 60's and 70's. Also for the lots of flight and cabin crew from the previous Maersk, who've seen their job quality go down the drain and even for quite a few young former (or formerly young!) SAS pilots, who have now lost their jobs twice within 5 years.
I wish everybody - BUT the icelandic investors - good luck.

[HZ123]

Sterling and Brathens SAFE kept Stansted alive in the 70-80's, time moves on.

[IB4138]

Norwegian is taking over some of the Sterling routes.

From todays Norway Post:

The Norway Post - Aviation: Norwegian takes over from Sterling (http://www.norwaypost.no/Genbus/Aviation-Norwegian-takes-over-from-Sterling/menu-id-28.html)

[Tjosan]

Someone will know the history better than me. But they ran a nice and small training center at CPH. Went there for both DC-8 and 757 sim.

I went there for the Caravelle sim.

[Nightcargo]

It is funny reading your comments on pprune. You are very anti Icelandic and anti Air Atlanta. I have a suspicion that you are one of those who have been working for a European company with a renewed valdiation year after year. That means you are taking work from the icelanders or europeans who need this job. Why are you hanging around if you dont like it. If you dont plan to. Why dont you just get on with your life. It dosent seem to be very interesting since you seem to spend your time trying to tear down what other people seems be content with.

Why dont you get the facts before you start making statements. Iceland might by in crisis and got no one to blame but themselfes. Look at the rest of the world. On the long run Iceland will be ok. Look at the US and European airlines who are running into crisis like any other industry in the world.

Yes there are some icelandic bandits just like in any other country.
Maybe you are one of them.

[BOAC]

It appears that Sterling has 'bounced' and is soon to be flying again. Anyone any links?

[IB4138]

It's a no go.

Here's the news link.

Takeover talks for bankrupt airline Sterling collapse after potential buyer withdraws -- Newsday.com (http://www.newsday.com/business/nationworld/ats-ap-eu-denmark-sterling-bankruptcynov18,0,4915594.story)

[The Flying Cokeman]

It's still a "maybe go" !

According to Danish media today Sterling expects to be flying on Monday and selling tickets from Friday :confused:

[The Flying Cokeman]

It was confirmed an hour ago that Sterling will not start operating again. The Danish kapital fond, Axcel has decided not to buy Sterling afterall.

Business.dk - Danske og udenlandske erhvervs- og finansnyheder, børstal samt valutakurser (http://www.business.dk)

I wish all you Sterling guys and girls all the best.

[ashland]

Ppruners:
It is now one year since the company went bust. The damage is being accounted as:

1200 employess at NB lost their jobs, a few hundreds in their suppliers companies that
also went belly-up after Sterling. Creditors lost USD 100 million + and some thousands
of consumers/pax lost their ticket value. Of course the investors lost a whole bunch
also. All in all the damage was huge and those who lost their jobs and savings have all
my sympathy.

The deals between FLGroup and Fons Investments are being scrutinized by the new
Icelandic Special Prosecutor. Too many dubious aspects in those deals.