Overview - FlyMe

FlyMe suspended operations on 02-Mar-07 and has announced plans to file for bankruptcy “as soon an possible”.

The carruer stated that it was not able to raise as much funding as expected through a recent rights issue. CEO, Finn Thaulow, announced the that the carrier didn’t have enough liquid assets to continue operations.

The carrier was based at Gothenburg-Landvetter Airport and commenced operations between Stockholm and Helsinki in Mar-04. FlyMe offered services between three Swedish cities and a dozen European destinations, including Nice, London, Prague, Alicante and Bologna.

In 2006, the carrier announced plans to take control of Lietuvos Avialinijos (Lithuanian Airlines/LAL) and British charter carrier, Astraeus. Both deals failed to mterialise, instead resulting in lease agreements to expand the carrier’s fleet.

FlyMe’s chief rivals, FlyNordic (a unit of FinnAir) and Sterling, expect to benefit from the carrier’s exit, which they claim will remove overcapacity from a congested Swedish aviation market. FlyNordic CEO, Maunu von Luders, stated "there has been quite a lot of overcapacity in Sweden, so FlyMe's exit will change and improve the balance. FlyMe's bankruptcy will remove this overcapacity."

FlyNordic announced it could increase frequencies on the Stockholm-Gothenburg route, but has not yet formulated plans to plans to fill the gaps let in the Swedish route network created by FlyMe’s absence, due to a “tight route plan”. FlyNordic’s northern Swedish operations had been threatened by a FlyMe plan to launch services between Stockholm and Lulea this month.

Sterling Airlines announced plans to replace FlyMe's services from Goteborg, Copenhagen, Malmo and Stockholm, implementing earlier plans to enter the Swedish domestic market that had previously been stifled by the “very intense competitive situation” in the Swedish domestic market. Sterling CEO, Stefan Vilner, stated "we're not doing FlyMe a favour, we're doing the passengers a favour, and it coincides with what we want to do." Sterling operated seven Swedish domestic services on 03-Mar-07 to assist stranded passengers and will examine operating other services this week.

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