EMCC European Monitoring Centre on Change

Sterling Airlines

Company/Organisation:
Sterling Airlines

Geographic Location

Country: Denmark
Region: Københavns amt
Location of affected unit(s): Kastrup

Company

Sector: Transportation / storage
Transportation and storage
51 - Air transport
Number Employed: 430

Employment Effects

Announcement Date: 20-11-2008
Planned Job Reductions min: 430
Planned Job Reductions max: 430
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 01-12-2008
Direct Dismissals: 430

Additional Information

The Icelandic owned and Danish-based low-fare carrier, Sterling, went bankrupt in October 2008 with the loss of 430 jobs. For a long time, the Danish investment fund Axcel has made attempts to take over Sterling, including aeroplanes and staff. In the end these attempts failed, among other things, due to the divergence of views between the unions about the agreement to be signed with Axcel. On 20 November, Axcel announced that they had cancelled the offer; hence the 430 employees were without jobs.

On 4 December the Danish airline company, Cimber, announced that they had bought Sterling with the aim to enter the European charter market. The aeroplanes and staff, however, are not part of the take-over. Cimber has announced that they hope to be able to employ a number of the redundant Sterling staff as soon as they open new destinations.