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Sterling Airlines files for bankruptcy, a victim of the Icelandic financial system collapse


Sterling Airlines filed for bankruptcy on 29-Oct-08, with the carrier unable to raise financial support for a restructuring programme, due to the collapse of the Icelandic financial system. The carrier stated the global financial recession, together with significant fuel cost increases and a planned heavy expansion, resulted in significant accumulated losses in 2008, necessitating the bankruptcy decision.

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Unlock the following content in this report:


  • Ramifications for other Scandinavian LCCs, notably Iceland Express and Norwegian Air Shuttle
  • Troubles began in 4Q07
  • Further casualties expected

Graphs and data:

  • Known worldwide airline failures/cessations: Dec-07 to Oct-08
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