kevin
Posts: 1015
Joined: Sat Dec 02, 2000 5:03 am

Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 1:38 pm

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?
 
spencer
Posts: 1518
Joined: Sun Apr 25, 2004 8:30 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 4:34 pm

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
 
IndianicWorld
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RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 4:51 pm

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.
 
andaman
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RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 4:56 pm

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.


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[Edited 2007-03-02 09:06:17]
Chinese cookie in SFO: "You're doomed to a life of forever travelling abroad and to be able to afford it!"
 
JuniorSpotter
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RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:19 pm

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.
 
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BreninTW
Posts: 1538
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RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:25 pm

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.
 
Robbie86
Posts: 305
Joined: Fri May 19, 2006 11:35 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:25 pm

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.
 
Twistedwhisper
Posts: 689
Joined: Mon Aug 18, 2003 11:52 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:26 pm

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.
 
IndianicWorld
Posts: 2799
Joined: Mon Jun 04, 2001 11:32 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:27 pm

Damn thats alot of cash lost by the carrier. was it there business plan that was flawed, including their destination choices and route planning?
 
LN-KGL
Posts: 817
Joined: Sun Sep 12, 1999 6:40 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:48 pm

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.
 
concai
Posts: 4
Joined: Sat Feb 10, 2007 3:31 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 5:54 pm

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

RIP
 
andaman
Posts: 2271
Joined: Wed Oct 05, 2005 5:29 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 6:05 pm

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

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LN-KGL
Posts: 817
Joined: Sun Sep 12, 1999 6:40 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 6:14 pm

And Fons' Sterling has already started the attack - see here http://www.sterling.dk/flyme
This smells foul play!
 
bhxdtw
Posts: 1035
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RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 6:39 pm

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
 
Kevin777
Posts: 951
Joined: Mon Sep 25, 2006 5:36 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 6:43 pm

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
 
debonair
Posts: 2695
Joined: Sat Jan 03, 2004 10:50 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 6:53 pm

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
 
bx737
Posts: 547
Joined: Mon Sep 17, 2001 4:47 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 7:18 pm

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

Yes I think so, they also did EUjet  tombstone  and Jetmagic  tombstone 
 
Twistedwhisper
Posts: 689
Joined: Mon Aug 18, 2003 11:52 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 7:39 pm

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.
 
rineanna
Posts: 764
Joined: Fri Jan 05, 2007 6:33 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 7:50 pm

Quoting Bx737 (Reply 16):
they also did EUjet

AFAIK, EUjet were profiled in Airliner World just one month before they went bust!
 
ZuluTime
Posts: 156
Joined: Mon May 29, 2006 6:23 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 8:14 pm

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.
 
mika
Posts: 2810
Joined: Thu Jul 27, 2000 7:53 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 8:16 pm

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.
 
LN-KGL
Posts: 817
Joined: Sun Sep 12, 1999 6:40 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 9:58 pm

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, .....
 
ZuluTime
Posts: 156
Joined: Mon May 29, 2006 6:23 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Fri Mar 02, 2007 10:03 pm

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.
 
flyboy_se
Posts: 709
Joined: Sat Feb 05, 2000 5:31 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Sat Mar 03, 2007 12:50 am

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
 
mika
Posts: 2810
Joined: Thu Jul 27, 2000 7:53 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Sat Mar 03, 2007 1:35 am

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!
 
Kevin777
Posts: 951
Joined: Mon Sep 25, 2006 5:36 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Sun Mar 04, 2007 12:12 am

Quoting ZuluTime (Reply 22):
Fons was definitely not the owner of Flyme - maybe it had just not updated its website

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 that this was well-coordinated; let FlyMe go, and let NB take the honor of being the rescuer for stranded pax. Oddly, just when NB wanted to expand in Sweden.. hmmm...

Kevin777
"I was waiting for you at DFW, but you must have been in LUV" CPH-HAM-CPH CR9
 
killjoy
Posts: 601
Joined: Thu Dec 02, 1999 6:00 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Sun Mar 04, 2007 12:30 am

Quoting Kevin777 (Reply 25):
I'm not too sure about these ownership-things here, but let's not get fooled by creative Icelandic ownership constructions

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'd get off the Finnish government's back about Finnair's ownership  Sad . It's a well managed and aggressively expanding company - not the next Airbus. If they force the government to sell their shares under some misguided fear of imagined government intervention in the marketplace, god knows what they'll do to it...
 
Kevin777
Posts: 951
Joined: Mon Sep 25, 2006 5:36 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Mon Mar 05, 2007 8:07 pm

Quoting Killjoy (Reply 26):
Off topic, but is it just me or are these generic "Icelandic investors" getting really annoying? First EasyJet, now stuff like this.

Oh yes, they are getting annoying - the venturing into U2 was nothing else than a (succesful) attempt to fool investors into believing they were gonna come with a take-over bid, thus raising the price on false rumours. They sure have the skills when it comes to creative law, but IMO the Icelandic airline-mafia have very modest management skills when it comes to aviation.

The whole FlyMe thing is yet another example that they know how to circumvent the law and make creative ownership constructions, but they don't know much about aviation.

Look at their recent comment abour Sterling: "Sterling had a 200 milloin Euro debt a year ago, that's gone now - look, we're succesful" - okay, how STUPID do you guys think people are. Those 200 million "gone" is nothing more than moving it to another company under the umbrella, it certainly doesn't come from NB's operations. NB is going by because they still have skilled people there who have been there since the 1960s - not because they have a 33-year old Icelandic yuppie who can't tell the difference between a 737 and a 320 with a poor law exam as their CEO.

For Icelandic a.netters, this is not an attack on you or Iceland in general - please don't take it the wrong way. But the airline mafia up there: No, really don't have much respect for them.

Kevin777  Smile
"I was waiting for you at DFW, but you must have been in LUV" CPH-HAM-CPH CR9
 
N1120A
Posts: 26467
Joined: Sun Dec 14, 2003 5:40 pm

RE: Swedish FlyMe Declares Bancrupcy By SMS

Mon Mar 05, 2007 9:32 pm

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

If you paid by credit card, which you almost certainly did, they should definately protect you. Just challenge the charge.

Quoting Brenintw (Reply 5):
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

Exactly. Dispute the charge and you will win.

Quoting TWISTEDWHISPER (Reply 7):
say that they're chapter 11

Ok, first off, is the actual title in the Norweigan Bankruptcy Code Chapter 11 or are you copying the US? Also, is this a liquidation or reorganization? If it is a liquidation, the US Chapter would be 7.

Quoting Mika (Reply 20):
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..

Print out that e-mail, get the discount and dispute the charge on your credit card. That will cut down the price of your trip even more.

Quoting Mika (Reply 24):
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+.

Remember, you can essentially add the price of your original trip to that since you should be able to get the money back.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
mika
Posts: 2810
Joined: Thu Jul 27, 2000 7:53 am

RE: Swedish FlyMe Declares Bancrupcy By SMS

Tue Mar 06, 2007 12:35 am

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 note...it was mentioned in the Metro newspaper today that there are several parties looking to take over FlyMe (whatever that constitutes in this case)..does anyone have any in detail news about that? Who is interested and what would that mean in practice.

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