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Swedish FlyMe Declares Bancrupcy By SMS  
User currently offlineKevin From Canada, joined Dec 2000, 1144 posts, RR: 0
Posted (7 years 6 months 3 weeks 5 days 17 hours ago) and read 5448 times:

According to www.gazeta.ru Swedish airline FlyMe decalred bancrupcy today and sent relevant SMS messages overnite to almost 2500 passengers. No messages of this content have been sent to stuff.

Anyone has more news on this?

29 replies: All unread, showing first 25:
 
User currently offlineSpencer From United Kingdom, joined Apr 2004, 1635 posts, RR: 17
Reply 1, posted (7 years 6 months 3 weeks 5 days 15 hours ago) and read 5362 times:

Yes, it seems like the directors have done a bunk with the majority of whatever funds were left! During last week's board meeting the Norwegian owner didn't even show! Can't say it comes as a surprise but, it certainly opens up the domestic market within now. Sterling were advertising for CC earlier this week so I wonder if they knew about this beforehand? It makes you wonder what they were thinking about re. the Astraeus deal, too!
Spencer.

[Edited 2007-03-02 08:46:42]

[Edited 2007-03-02 08:47:20]


EOS1D4, 7D, 30D, 100-400/4.5-5.6 L IS USM, 70-200/2.8 L IS2 USM, 17-40 f4 L USM, 24-105 f4 L IS USM, 85 f1.8 USM
User currently offlineIndianicWorld From Australia, joined Jun 2001, 2981 posts, RR: 0
Reply 2, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5334 times:

Seems like the dreaded Airliner World / Airport magazine curse has happened again. Once a new carrier is profiled thewy go bankrupt. Examples include Goodjet and FlyMe just to name a couple.

This is sad news as they appeared to be doing well in the swedish marketplace. The Scandanavian market must be one of the most competitive around. There are many players for a smaller population market.

Gotherburg will certainly suffer as of this bankrupcy.


User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5321 times:

I have flown FlyMe on HEL-ARN years back, liked them. True, the Nordic markets are hard, especially for the smaller LCCs, they come and go all the time. Must be easier now for Finnair's LCC Flynordic.


View Large View Medium
Click here for bigger photo!

Photo © Gerry Stegmeier


[Edited 2007-03-02 09:06:17]

User currently offlineJuniorSpotter From Sweden, joined Mar 2004, 225 posts, RR: 2
Reply 4, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5274 times:

This is just great.

My girlfriends' birthday was a couple of days ago, and as a gift I gave her a weekend trip (a sort of relax-trip away from our kids...and me  Wink ) to Kiruna, where her best friend now lives. She was booked on FlyMe from GOT to ARN, but here we are. And there are no refunds, just spoke to my bank.

Hoo-friggin-ray.



If something can go wrong, it will.
User currently onlineBrenintw From Taiwan, joined Jul 2006, 1648 posts, RR: 1
Reply 5, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5258 times:

Quoting JuniorSpotter (Reply 4):
And there are no refunds, just spoke to my bank.

Did you pay cash or by credit card? If you paid by credit card, you can institute a chargeback against the airline for not delivering services paid for and you should have the full amount credited to your account within 24 hours -- speak to your bank about that.



I'm tired of the A vs. B sniping. Neither make planes that shed wings randomly!
User currently offlineRobbie86 From Sweden, joined May 2006, 537 posts, RR: 0
Reply 6, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5258 times:

Fly Me lost as much as up to $95 000 each day for the last couple of months so I guess this was the only way for them to end up.


Next flights: ARN-LHR-IAD on BA 319/VS343 EWR-LHR-ARN on VS346/BA319
User currently offlineTWISTEDWHISPER From Sweden, joined Aug 2003, 711 posts, RR: 2
Reply 7, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5253 times:

This was on the news here in Gothenburg (base of FlyMe) yesterday.
Apparently the company has been drained of money, 40M SEK (~3.5M $) was transferred out of the company.
FlyMe basically blames the banks, and say that they're chapter 11 because 60M SEK has been frozen, money that travellers has paid for tickets.
They were also waiting for money to be invested to avoid bankruptcy, deadline was 23:59 2007-02-28. No money was to be seen.

They have posted a message on their website, http://www.flyme.se/ although it's in Swedish:
The airline FlyMe Sweden (FMS) intend to file for chapter 11.

FMS ticket sales consist of 95% internet sales through credit card payments. The handling bank currently have approximately 60 M SEK on frozen accounts, money that they regards as insurance for claims from travellers

The bank has advised the board of FMS that they intend to not accept payments to FMS from 11:00 on March 2:nd (10:00 GMT) unless FlyMe Europe can show that payment for the outstanding amount from the emission has been received, and that the ongoing new emission has been closed.

The board of FlyMe Europe has notified the board of FlyMe Sweden that they are unable to close the emission, and that they have not received any signs that the money will be received, and therefore they will not be able to close the emission within the time limit given by the bank.

As a result, FMS has decided to stop all ticket sales and ground all their aircrafts.

The board intend to file for bankruptcy

It ends with the usual thanks to all employees, sorry all passengers.


I've flown with them once, it got me where I wanted to go, but I still prefer SK or LH or BA.



Read between the lines.
User currently offlineIndianicWorld From Australia, joined Jun 2001, 2981 posts, RR: 0
Reply 8, posted (7 years 6 months 3 weeks 5 days 14 hours ago) and read 5253 times:

Damn thats alot of cash lost by the carrier. was it there business plan that was flawed, including their destination choices and route planning?

User currently offlineLN-KGL From Norway, joined Sep 1999, 1039 posts, RR: 4
Reply 9, posted (7 years 6 months 3 weeks 5 days 13 hours ago) and read 5207 times:

Quoting Spencer (Reply 1):
During last week's board meeting the Norwegian owner didn't even show!

Small correction: Icelandic owner Fons

Quoting IndianicWorld (Reply 2):
The Scandanavian market must be one of the most competitive around. There are many players for a smaller population market.

But then, the Scandinavians know their flying. If we count passengers to/from for example the Norwegian capital Oslo compared with the total citizen number of the country, every citizen has almost four flight in/out from OSL. As a comparison London need need five airports (LHR, STN, LGW, LTN, LCY) to match this number of around four flights per UK citizen, but one can't say OSL such an international hub as LHR. For US citizens - a comparable number for Washington DC would have been around 1.2 billion passengers  Wow! and the passenger number for PEK ...

Back to the home market of FlyMe Sweden, the Swedes don't fly as much as the Norwegians, and the biggest difference is the passenger numbers within Sweden (the domestic passengers for ARN is around 30% and for OSL 50%). It may be this relative weak domestic base and the number of airlines serving this market (in addition to FlyMe - SAS, City Airline, FlyNordic, Golden Air, Malmö Aviation, Skyways and Transwede - in Norway it is only four major players SAS Braathens, Norwegian Air Shuttle, Widerøe's Flyveselskap and Coast Air) have contributed to the relative high number of Swedish airlines going bankrupt.


User currently offlineConcai From Sweden, joined Feb 2007, 6 posts, RR: 0
Reply 10, posted (7 years 6 months 3 weeks 5 days 13 hours ago) and read 5185 times:

This is really bad news, especially for us living in Gothenburg. Lucky I booked my trip ARN-GOT this evening with SAS...

RIP


User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 6 months 3 weeks 5 days 13 hours ago) and read 5155 times:

Curious to see if Finnair's LCC Flynordic will expand in GOT now.

View Large View Medium
Click here for bigger photo!

Photo © Hans Olav Nyborg



User currently offlineLN-KGL From Norway, joined Sep 1999, 1039 posts, RR: 4
Reply 12, posted (7 years 6 months 3 weeks 5 days 13 hours ago) and read 5129 times:

And Fons' Sterling has already started the attack - see here http://www.sterling.dk/flyme
This smells foul play!


User currently offlineBHXDTW From Eritrea, joined Feb 2005, 1090 posts, RR: 5
Reply 13, posted (7 years 6 months 3 weeks 5 days 12 hours ago) and read 5067 times:

Quoting IndianicWorld (Reply 2):
Seems like the dreaded Airliner World / Airport magazine curse has happened again. Once a new carrier is profiled thewy go bankrupt. Examples include Goodjet and FlyMe just to name a couple.

Didnt they also review Air Madrid ???  Wink


User currently offlineKevin777 From Denmark, joined Sep 2006, 1165 posts, RR: 1
Reply 14, posted (7 years 6 months 3 weeks 5 days 12 hours ago) and read 5056 times:

Quoting Spencer (Reply 1):
Can't say it comes as a surprise but, it certainly opens up the domestic market within now.

Right, it certainly doesn't come as a surprise - the past 3-6 months have seen CEOs coming and going, the authoritities breathing in their neck...

Quoting IndianicWorld (Reply 2):
Examples include Goodjet and FlyMe just to name a couple.

...and the same people involved in the former started the latter....

Quoting IndianicWorld (Reply 2):
This is sad news as they appeared to be doing well in the swedish marketplace.

I hardly think they were doing well. They were having decent, but still not too high load-factors and let's not forget record-low-yields. SK haven't got the best loads on intra-Scandinavian either, but 5-10 pax on each flight have paid a small fortune for their ticket, which helps a lot - FlyMe was all low-yield, to the very last minute before departure

Quoting LN-KGL (Reply 12):
And Fons' Sterling has already started the attack - see here

There have often been talks about NB and FlyMe joining forces. I can never figure out those obscure Icelandic ownership constructions, but fact remains that both airlines de facto are owned by the same investors.

Oh well, another one bites the dust

 tombstone 

Kevin777  Smile



"I was waiting for you at DFW, but you must have been in LUV" CPH-HAM-CPH CR9
User currently offlineDebonair From Germany, joined Jan 2004, 2430 posts, RR: 4
Reply 15, posted (7 years 6 months 3 weeks 5 days 12 hours ago) and read 5018 times:

Quoting JuniorSpotter (Reply 4):
I gave her a weekend trip (a sort of relax-trip away from our kids...and me ) to Kiruna, where her best friend now lives. She was booked on FlyMe from GOT to ARN, but here we are. And there are no refunds, just spoke to my bank.

check this one: http://www.sterling.dk/flyme

Sterling will take over!  Big grin


User currently offlineBx737 From Ireland, joined Sep 2001, 679 posts, RR: 3
Reply 16, posted (7 years 6 months 3 weeks 5 days 12 hours ago) and read 4955 times:

Quoting BHXDTW (Reply 13):
Didnt they also review Air Madrid ???

Yes I think so, they also did EUjet  tombstone  and Jetmagic  tombstone 


User currently offlineTWISTEDWHISPER From Sweden, joined Aug 2003, 711 posts, RR: 2
Reply 17, posted (7 years 6 months 3 weeks 5 days 11 hours ago) and read 4905 times:

Quoting LN-KGL (Reply 12):
This smells foul play!

Ah, but FlyMe also refer visitors on their website to sterling.dk
www.flyme.se

So foul play? I'm not sure what is giong on...



Read between the lines.
User currently offlineRineanna From Ireland, joined Jan 2007, 880 posts, RR: 12
Reply 18, posted (7 years 6 months 3 weeks 5 days 11 hours ago) and read 4866 times:

Quoting Bx737 (Reply 16):
they also did EUjet

AFAIK, EUjet were profiled in Airliner World just one month before they went bust!


User currently offlineZuluTime From United Kingdom, joined May 2006, 169 posts, RR: 0
Reply 19, posted (7 years 6 months 3 weeks 5 days 11 hours ago) and read 4811 times:

Fons did not own Flyme - they got out in autumn of last year. It was a Norwegian bloke (who I think also owns GSS, the BA 747 cargo airline in Stansted) who owned Flyme.

User currently offlineMika From Sweden, joined Jul 2000, 2881 posts, RR: 3
Reply 20, posted (7 years 6 months 3 weeks 5 days 11 hours ago) and read 4809 times:

Damnit! I had this feeling about FlyMe for a long time but never did i expect that my trip to Paris later this spring would be affected by this!


Sigh..i guess i'd better look something up with Sterling (they provide all FlyMe customers with a 400SEK discount) if i want a spring weekend at all..

Anyone else directly affected by FlyMe's bankruptcy? Where were you going and when?


On another note this is also bad for the Gothenburg region..i don't know how bad considering Ryanair's rapidly growing precense at Gothenburg City Airport but anyways..it would have been at least pleasant to see a local airline succeed for once.


User currently offlineLN-KGL From Norway, joined Sep 1999, 1039 posts, RR: 4
Reply 21, posted (7 years 6 months 3 weeks 5 days 9 hours ago) and read 4665 times:

ZuluTime, you got it wrong
Fons was still the owner of FlyMe, check this webpage http://www.fons.is/?PageID=47

And Global Supply Systems is according to their website "majority owned by a British entrepreneur and by Atlas Air Inc."

This FlyMe bankrupcy is the opportunity for Fons to erase a lot of debts and emerge on the white horse to save stranded passengers with Sterling - a win win for Fons if you don't see through the smoke screen.

Hope this type of business conduct will not be a trend for Icelandic investment companies the coming years - there are a number of them, just to mention a few like Glitnir, Baugur, Hf. Eimskipafélag Íslands, Langflug, Naust, Fjárfestingafélagið Máttur, Urður, Flugval, Lífeyrissjóðir Bankastræti, Samvinnulífeyrissjóðurinn, Lífeyrissjóður verslunarmanna, .....


User currently offlineZuluTime From United Kingdom, joined May 2006, 169 posts, RR: 0
Reply 22, posted (7 years 6 months 3 weeks 5 days 9 hours ago) and read 4661 times:

Fons was definitely not the owner of Flyme - maybe it had just not updated its website. The Norwegian guy was Christen Ager-Hanssen and he bought out Fons shareholding last September after the deal for Flyme to buy Astraeus fell apart. That's why Fons later bought Astraeus in its own right.

User currently offlineFlyboy_se From Sweden, joined Feb 2000, 812 posts, RR: 5
Reply 23, posted (7 years 6 months 3 weeks 5 days 6 hours ago) and read 4494 times:

Sterling (NB) is allready operating flights between ARN and GOT, MMX. FlyMe s customers can use their tickets for these flights at no extra charge, on a space available basis.It looks like this is NB s chance to start domestic flights within Sweden (makes you wonder if this was not planned). Passengers that are stranded in Europe , can use NB s flights on space available basis.To be sure to have a seat, you can buy a ticket and get a 200 SEK discount per one way.
Also SJ (swedish railways) is offering FlyMe s customers free train rides between Stockholm and Gothenburg, Malmö.
Sad to see FlyMe go, but it was expected. Better to leave market to the more serious players.



I prefer to be crazy and happy rather than normal and bitter
User currently offlineMika From Sweden, joined Jul 2000, 2881 posts, RR: 3
Reply 24, posted (7 years 6 months 3 weeks 5 days 6 hours ago) and read 4431 times:

Quoting Flyboy_se (Reply 23):
you can buy a ticket and get a 200 SEK discount per one way.

NB's prices are no way near those of FlyMe's though..i just checked how much a trip, with the 400SEK discount (any trip actually) from GOT to NB's european destinations would cost and i got fares in the region of 1800SEK+.

Crap!


25 Kevin777 : I'm not too sure about these ownership-things here, but let's not get fooled by creative Icelandic ownership constructions - It might very well be th
26 Post contains images Killjoy : Off topic, but is it just me or are these generic "Icelandic investors" getting really annoying? First EasyJet, now stuff like this. I just wish they
27 Post contains images Kevin777 : Oh yes, they are getting annoying - the venturing into U2 was nothing else than a (succesful) attempt to fool investors into believing they were gonn
28 N1120A : If you paid by credit card, which you almost certainly did, they should definately protect you. Just challenge the charge. Exactly. Dispute the charg
29 Mika : N1120, I will send an email to someone at FlyMe and see what they say..i do highly doubt that i'll get anything back though, but we'll see. On a side
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