STAR1

[dublindispatch]

According to yesterdays Daily Star the STAR1 737 was inpounded in DUB the day before yesterday by the lessor.

Is that the end of STAR1. Anyone know the story there?

[jpthomas72]

Yes. Star1 has bitten the dust. Real pity, used them a few times STN-VNO. VNO website shows all Star1 flights as cancelled (they wet-leased a Aurela 737 in addition to their own 737-700), their website star1.aero is not responding.
My Latvian isn't great, but 'bankrotas' is an international word:
staburags.lv -Port?ls -Pasaules zi?as (http://www.staburags.lv/portals/pasaules/raksts.html?xml_id=16033)

R.I.P., Star1 Airlines ! I'm afraid we won't see a Lithuanian carrier anymore.

[jpthomas72]

First English language articles on this (lots in Lithuanian, and Russian, obviously):

Airline Routes | ATW Online (http://atwonline.com/airports-routes/news/airline-routes-0922)

Star1 Airlines of Vilnius, according to unconfirmed media reports, has paused operations after its sole aircraft (737-700) was seized at Dublin Airport. AirBaltic said it is "in touch" with Star1 management "to offer assistance," with stranded passengers. The carrier began operations last July (ATW Daily News, Jan. 22 (http://atwonline.com/airline-financedata/news/other-news-01222010-0309-1)).Checked VNO website closer, they initially had the STN flight re-scheduled for 22:10 (6 hours late), but it's now 'Cancelled', as are all Star1 flight.

Now obviously MOL will jump in and offer 'rescue fares' from KUN.

[jpthomas72]

I've pushed a LT article through Google auto-translate, see the last official info below, note they are two hours ahead of the UK, so this is from 5:23pm:

?Star1 Airlines? v?l at?auk? skryd?ius, ne?inia d?l ateities veiklos i?lieka (atnaujinta 19.23 val.) | 15min.lt (http://www.15min.lt/naujiena/aktualu/lietuva/star1-airlines-skrydzius-toliau-gaubia-nezinomybe-56-116955)

Supplemented by 19:23 pm. Star1 Airlines issued a statement informing that the retention of the leased aircraft at Dublin Airport and fails to cancel the flight on Thursday Vilnius - London - Girona and Vilnius - Vilnius - Gerona.
Friday also will be conducted the following operations: Vilnius - Milan - Vilnius, Vilnius - London - Vilnius.
The airline announced that it canceled its flights passengers must arrange their own travel.
Star1 Airlines management is also informed that the current negotiations with the Dublin Airport detained the aircraft, leased to the company, the owners of the aircraft return to Vilnius.
Information on Star1 Airlines Opportunities in 2010 25 September and then set to continue its business operations and will be published on Friday by 16 am.Interpreting this from the auto-translate, all flights are cancelled. We've seen those things before. Even if they get the plane back, it's very unlikely to rescue them.

[jpthomas72]

?Star 1 Airlines? patvirtino: l?ktuvas i? Dublino ? Vilni? nei?skrido d?l apribot? teisi? (atnaujinta 13.25 val.) | 15min.lt (http://www.15min.lt/naujiena/pinigai/lietuvos-naujienos/star-1-airlines-patvirtino-lektuvas-is-dublino-i-vilniu-neisskrido-del-apribotu-teisiu-194-116804)

Apologies for the usual auto-translate glitches, but you get the message:

Last updated 13:25 pm.: Airline airBaltic will help Star1 Airlines passengers negalėjusiems leave the airport to return to Lithuania, the company says in a statement. They will offer flight tickets at rock bottom prices.
AirBaltic's representatives said the airline is currently talking with Star1 Airlines management, offering the necessary assistance.
"We are ready to return to Lithuania to help trapped travelers abroad. The flight time is the most expensive tickets, but the light of this situation, we will give people tickets for the lowest price, "- says airBaltic Vice President and General Manager Jude Vizgirda Lithuania.
Available data on Star1 Airlines plane arrest in Dublin, can not go back to Lithuania for passengers from Dublin, London and Milan airports.
These passengers are invited to contact the airline airBaltic representatives who submitted Star1 Airlines ticket will be able to get the lowest possible fares for the flight. Passengers will be allowed to choose to return to the airport - Vilnius, Kaunas and Palanga.

[NG1]

Does anybody have more info about the lessor of their 737?

Thanks,

NG1

[TBSC]

Pegasus Aviation.

[TBSC]

Altough the article below says Elviria Leasing.

Star1 Airlines in financial nightmare | GlobalPost (http://www.globalpost.com/webblog/russia-and-its-neighbors/star1-airlines-financial-nightmare)

[NG1]

Thanks, TBSC!

[jpthomas72]

Thanks for the article link !
They want to announce if they are alive or dead by 16:00 Vilnius time (which is 14:00 UK) today (Friday) :

http://www.star1.lt/en/

It's always striking how in Eastern Europe, they endorse so much the Free Market ideology, while e.g. in Italy, they give s**t about subsidisation rules to keep AZ flying. It's really not like FR is not subsidised (though indirectly).
There are the plans from Mr Flick in Riga to found a new airline based at VNO (though this is odd as BT - which he leads/has led already has a base there), he surely was aware that Star1 didn't pay VNO their fees.

Flick: it?s time to stop the chatter about conflicts of interests in Latvia :: The Baltic Course | Baltic States news & analytics (http://www.baltic-course.com/eng/transport/?doc=31919)

I think Star1 was the only VNO-UK direct flight, BT to LGW was summer-only. So I expect them to re-instate that on quite short notice, i.e. instead of VNO-MUC. The capacity FR has on KUN-UK is quite a lot, but I don't think esp around Christmas that will be enough (plus KUN isn't that convenient from Vilnius).

[dublindispatch]

The VNO-DUB-VNO was never oing to work with both Star1 and BT on the route at almost the same times and days of operation. Both flights operated around half full and BT pulled the VNO on the strength of the Star1 flights, so maybe they may give it a go if they can get the fleet capacity.

[jpthomas72]

dublindispatch,
Aviation (and business, for that matter) in LT is a very complicated story though. People on the Lithuanian news websites are furious and talk about another gangster airline. Star1 was too stretched, lost a lot of money. But what really killed them of was FR's KUN-DUB and KUN-LON. FR has massively increased KUN-UK recently, and STN-LON was Star1's main connection. BT is a difficult story in VNO also, they effectively killed of FlyLAL (the former national carrier), then closed their base, then opened it again. I think currently VNO is very happy to have some reliable people like LH and LO. BT is a mighty power in the Baltics, sure, but its route planning reminds you of FR.

[dublindispatch]

Have things not changed now that they are not owned by SAS or have they become worse? If what you say is the case maybe they should have stayed on the DUB-VNO route and tried to kill off Star1 that way.

It is still very sad when any airline goes under or has problems.

[TBSC]

All flights cancelled between 25SEP-01OCT. Announcement only available in lithuanian.

"Star1 Airlines announces that it is currently held intensive negotiations with investors. The final agreement on the investment and operating update is expected to achieve over the next few days. Therefore, the airline stops flights to Saturday, 2 October.

All flights scheduled September 25 - October 1, is cancelled."

[dublindispatch]

Ah not good! but at least they not dead!!

[EI-TECH]

LY-STG just departed DUB headed for CAI ....

[Charlie Roy]

The VNO-DUB-VNO was never oing to work with both Star1 and BT on the route at almost the same times and days of operation

But what really killed them of was FR's KUN-DUB and KUN-LON. FR has massively increased KUN-UK recently, and STN-LON was Star1's main connection.

Not forgetting that for most of Star1's history Aer Lingus was also an unwelcome competitor for them with their routes: Dublin to Vilnius and Gatwick to Vilnius.

[davidjohnson6]

Could it also be that amongst the 3 Baltic nations, with relatively small populations (total is under 7 million) compared to countries like Germany or Poland, and an economy that has been hit hard by the recession, that passengers simply aren't willing to spend enough on flying to keep 3 separate Baltic airlines going ?

SAS is going through tough times while being the principal carrier for a population of about 20 million (yes, I know about Norwegian) along with the benefits of membership of a major alliance. What chance of Lithuania, Latvia and Estonia each being able to have an independent airline of their own ?

[Jamie2k9]

DUB-VNO
Air Baltic & Start 1 have more flights from DUB than Aer Lingus. Since BT resumed the route in March EI have contained to reduce the service to just 2 weekly. (had been up to 6 weekly). Passenger numbers on the route are around 7,000 every month. Ryanair's DUB - KUN route is more less the same with passenger numbers around 7,200 monthly. Both routes are up on 2009.

[dublindispatch]

Are they dead yet?

[davidjohnson6]

Are they dead yet?

dublindispatch - could you be slightly more careful in how you phrase your questions ?

A company going bankrupt means people losing their livelihood. It is not the same as a Hollywood scene of a filmstar stopping a huge monster from rampaging through a city, killing civilians in its path

[dublindispatch]

Well ok then are they on a life support machine, recieving the best medical attention ensuring that they will pull thru a stronger and better company ready to face the rigors of avaition today?

[alm1]

No. Today our prime minister criticized CAA and other institutions for allowing underfunded airlines to sell tickets and then leave passengers stranded (again). So their prospects at having their licence not revoked are really slim.

[dublindispatch]

Have BT made any indications of taking over any Star1 routes?

[Nothrills]

Not immediately, but AirBaltic's largest shareholder has announced plans to establish a new Vilnius-based airline next spring.

[dublindispatch]

Not another VNO based airline!!!!!!!

[jpthomas72]

Well, let's see. The person we're talking about, the president of AirBaltic, Bertolt Flick is one of the most colourful people in the airline industry, I'd say a close second to MOL. He's constantly playing games with the Latvian government and Riga airport, while apparently cashing-in state subsidies for his airline.

airBaltic could establish airline in another country, but not in 2010 :: The Baltic Course | Baltic States news & analytics (http://www.baltic-course.com/eng/transport/?doc=32069)

Ireland-Lithuania will remain safe territory for Ryanair.

BTW, this could be interesting also: The Star1 issue now even reached the president of Lithuania:

Grybauskaite: Star1 Airlines problems are a big loss for Lithuanian economy :: The Baltic Course | Baltic States news & analytics (http://www.baltic-course.com/eng/transport/?doc=32198)

[Jamie2k9]

With the Start 1 future up in the air it has been a double blow for Dublin as Air Baltic have scrapped there DUB - VNO flights and it may also happon with Start 1. Even though EI also fly VNO they has put on one extra flight during the winter. Ryanair had a big role to play in the cuts with there KUN route.

[jpthomas72]

Now official from their website: Star1 is history.

Star1 Airlines - Lithuanian low cost carrier - Home (http://www.star1.lt/en/)

JSC Star Team Group being unable to continue providing funding to its wholly-owned JSC Star1 Airlines and taking into account that Star1 Airlines is unable to operate the only aircraft due to its detention in Dublin airport decided to initiate bankruptcy to JSC Star1 Airlines.
JSC Star Team Group, as the only shareholder of Star1 Airlines, assigned the director of the company to prepare and submit the application for initiation of bankruptcy and other relevant documents to Vilnius District Court no later than 5th October, 2010.
(...)

[jpthomas72]

I guess there's also less demand for immigrants due to the economic problems in Ireland. Here in the UK, I get the impression the Baltic and Polish immigrants are in London and the South, not really in the Midlands, which struggle economically. Possibly a reason we lost BHX-KUN. Anyway, surely the aforementioned Mr Flick will do something next year if he thinks there is enough demand.

[pwalhx]

Unfortunately your point jpthomas72 is disproved by the fact the LPL-KUN service remains and on the several occasions I have used it it has been well patronised.

[dublindispatch]

There is still a reasonable market from DUB-VNO all the same but not for EI,BT,FR and Star1, lets hope BT come back in again as at least some competation may stimulate demand and keep fares competative

[MILEHIGHBOY]

sure i saw Star1 landin at EDI this morning

[TOWTEAMBASE]

Theres also a Blue line 737 impounded in LTN. The reg is...wait for it.....YR BAD ;-0

[dublindispatch]

I thought the only airframe thay had went to CAI from DUB last week?

[SRTDub]

Yes there was a new court order issued to release the plane, so its possible you did see it, im not sure of any details, all i know is we were told to have it ready to fly dont know where it was headed.