No-frills airline goes bust

Danish no-frills airline Cimber Sterling has declared bankruptcy after its owners pulled their financial support, leaving passengers holding worthless tickets and 890 staff without jobs.

The airline issued a statement which said one or more administrators will be appointed by a court to try to preserve as much of the operations as possible under a reconstructed company. For the time being, all flights have been cancelled.

The airline is 70.8% owned by Mansvell Enterprises, an investment vehicle of Ukrainian businessman Igor Kolomoisky.

It said it was hit by fierce competition between low-cost carriers and rising costs when it expanded beyond Scandinavia.

"The board of directors and the management team have worked intensely to ensure a turnaround of the company for several months but unfortunately we did not succeed before we ran out of time," chief executive Jan Palmer said in the statement.

The airline said a plan would be drafted within three days to outline the company's future activities which are expected to focus on domestic traffic.

With permission from Travelmole