Sterling Airlines bankrupt

[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.

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

[panda-k-bear]

Interesting info, Re-Heat

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]

Fisheads goes fishing!

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]

3 Sterlings

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