Sterling Falling From the Sky

Icelandic-owned Sterling Airlines to File for Bankruptcy

Icelandic-owned low-cost carrier, said it will file for bankruptcy on Wednesday. The airline, which was trying to raise financial support for a restructuring program amid losses, collapsed following the Icelandic financial system meltdown that started last month.

The bankruptcy announcement has resulted in the immediate grounding of all its planes, putting its customers in difficulties, especially those who have bought tickets from the company Web site. Sterling said it would not be able to refund such customers, or do anything for those who are availing its services.

This is more bad news for Budapest as this was a budget airline from and to here.