Sterling goes bust

29 Oct 2008 by Anonymous

Denmark-based (but Icelandic-owned) carrier Sterling Airways has become the latest victim of the global financial turmoil.

All of the airline’s flights have been grounded, including services from both Copenhagen and Stockholm to Gatwick. The low-cost carrier is owned by Icelandic group Northern Travel Holdings, which also owns Iceland Express and UK-based aircraft leasing company Astraeus.

A statement on the airline’s website said:

“On the September 29, 2008, the Icelandic financial environment started to collapse. 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. Negotiations have been conducted with several potential investors, but it was impossible to make ends meet. The inevitable result is that Sterling Airlines A/S has no option but to file for bankruptcy.

“Customers who have directly purchased their tickets on Sterling’s website will unfortunately not be refunded neither will their return flights. You therefore have to book your return flights with another airline company.

“If you have paid for a flight by credit card, we advise you to contact your bank or credit card company to ask for a possible refund. Customers who have booked their flights through a travel agency or tour operator should initially contact them. Passengers who have booked their tickets through Sterling, but are flying with Norwegian, should contact Norwegian directly on +47 21490015 (from outside Norway, or 815 21 815 (inside Norway).

“Passengers currently staying abroad in hotels, or hiring a car through Sterling business partners, are still able to stay in their hotel or keep the hired car for the relevant period of time, as such services are paid for through our business partners and not Sterling. However as for your return flight, you will need to find alternatives for your final destination.”

It is understood that between 500 and 700 passengers have been left stranded by this latest airline collapse. For more information visit

Report by Mark Caswell

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