Denmark's main domestic airline goes bankrupt

PanARMENIAN.Net - Denmark's main domestic airline has declared itself bankrupt after its owners decided to stop their financial support, AP reports.

Cimber Sterling has faced rising costs and fierce competition from other European budget carriers when it expanded routes beyond Denmark. The company expected a deficit for 2011 of 200 million kroner ($35 million).

The company said Thursday, May 3 its four domestic and European charter flights were canceled and more than 600 jobs were at risk.

Last August, Ukrainian businessman Igor Kolomoisky sparked hopes of a financial recovery when he acquired 70.8 percent of the stakes. However, Cimber Sterling closed several southern Europe routes last month and trimmed 200 jobs as it refocused on domestic traffic.