Buster the Bear
14th Mar 2005, 15:57
Iceland Express to merge with Sterling
14 Mar 2005
The Icelandic investment company that owns Iceland Express has bought Copenhagen-based low cost carrier Sterling from the Fred. Olsen group for 400m Danish kroner (£37.5m).
Fons Eignarhaldsfelag, which was set up by former Icelandair shareholders Palmi Haraldsson and Johannes Kristinsson, paid an undisclosed sum for 89% of Iceland Express last month. The company intends to merge the two carriers.
Explaining their latest acquisition, Haraldsson and Kristinsson said in a statement Monday: ‘The travel and leisure industry trends remain very favourable as ever more budget-conscious passengers are increasingly turning to this travel solution.
'The present market fragmentation leaves the door open for the tapping of unexploited niche markets; be it in terms of new destinations or services offered. Both Sterling and Iceland Express are strong brand names within their own markets with a fleet consisting of the most cost-efficient aircraft within this segment.’
Sterling operates a fleet of ten Boeing 737-800 aircraft. Last year, despite a 36.4% year-on-year increase in passenger numbers to 1.825m, the airline reported a loss of DKK119.3m (£11.2m), which it attributed to the high price of fuel and increasing competition.
Sterling is currently owned in a 50:50 joint venture by Oslo-listed Bonheur ASA and Ganger Rolf ASA, both of which are controlled by Norwegian ship owner and industrialist Fred Olsen, whose interests range from cruising to Timex watches.
Although Norwegian-owned, Sterling’s head office is in Copenhagen as it was originally founded by Ejlif Krogager, the Dane behind the Tjaereborg tour operator. The airline was sold by Tjaereborg in 1986 but went bankrupt in 1993 before the Fred. Olsen group bought a 90% stake in 1996.
http://whipsnade.co.uk/picturelibrary/jpeg150/br/brown_bear_120_wide.jpg
14 Mar 2005
The Icelandic investment company that owns Iceland Express has bought Copenhagen-based low cost carrier Sterling from the Fred. Olsen group for 400m Danish kroner (£37.5m).
Fons Eignarhaldsfelag, which was set up by former Icelandair shareholders Palmi Haraldsson and Johannes Kristinsson, paid an undisclosed sum for 89% of Iceland Express last month. The company intends to merge the two carriers.
Explaining their latest acquisition, Haraldsson and Kristinsson said in a statement Monday: ‘The travel and leisure industry trends remain very favourable as ever more budget-conscious passengers are increasingly turning to this travel solution.
'The present market fragmentation leaves the door open for the tapping of unexploited niche markets; be it in terms of new destinations or services offered. Both Sterling and Iceland Express are strong brand names within their own markets with a fleet consisting of the most cost-efficient aircraft within this segment.’
Sterling operates a fleet of ten Boeing 737-800 aircraft. Last year, despite a 36.4% year-on-year increase in passenger numbers to 1.825m, the airline reported a loss of DKK119.3m (£11.2m), which it attributed to the high price of fuel and increasing competition.
Sterling is currently owned in a 50:50 joint venture by Oslo-listed Bonheur ASA and Ganger Rolf ASA, both of which are controlled by Norwegian ship owner and industrialist Fred Olsen, whose interests range from cruising to Timex watches.
Although Norwegian-owned, Sterling’s head office is in Copenhagen as it was originally founded by Ejlif Krogager, the Dane behind the Tjaereborg tour operator. The airline was sold by Tjaereborg in 1986 but went bankrupt in 1993 before the Fred. Olsen group bought a 90% stake in 1996.
http://whipsnade.co.uk/picturelibrary/jpeg150/br/brown_bear_120_wide.jpg