Sterling Airlines Lands for Good
It's a bird.. it's a plane... no, it's Sterling Airlines halted to the ground.
Icelandic-owned Sterling cancelled all flights this morning, marking the official demise of the airline.
Hundreds of passengers were left hanging at the hanger, stranded at a major airport this morning as they learned the news the hard way.
As if ruining their travel plans wasn't bad enough, Sterling also informed customers who had purchased tickets directly through their website that they would not be receiving a refund. (more reason to have utilized Section 75 to avoid all that hassle).
This lack of sympathy from Sterling sounds harsh, but apparently the airline has simply run out of money:
Sterling Airlines said on its website that talks had been conducted with several potential investors, but it had been impossible to make ends meet.
'The inevitable result is that Sterling Airlines A/S has no option but to file for bankruptcy,' it said.
Sterling said its Icelandic owner Palmi Haraldsson had injected 444.5 million Danish crowns (£47million) into the firm, which has struggled with high fuel bills and expansion costs, between July and September 2008.
Previously, 'the plan was to continue financial support into 2009,' Sterling said.
'Over a three to four-week period, the whole financial system melted down, and that resulted in our shareholder being unable to continue his support to the company'.
Sterling is planning to officially declare bankruptcy later today, while Iceland's entire financial system is folding under the weight of the current global economy. What's next?