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FORMED IN 1969. ESTABLISHED WHEN THE SHIPPING COMPANY, AP MOLLER DECIDED TO EXTEND ITS ACTIVITIES FROM SEA AND LAND TO THE AIRWAYS. DOMESTIC, REGIONAL, & INTERNATIONAL, PASSENGER & CARGO, JET AIRPLANE SERVICES.
COPENHAGEN AIRPORT SOUTH
DK-2791 DRAGOER, DENMARK
The Kingdom of Denmark was established in 800, it covers an area of 43,092 sq km, its population is 5.2 million, its capital is copenhagen, and its official language is Danish.
OCTOBER 1995: OWNED BY A P MOLLER GROUP (SHIPPING) (100%).
RETURNED 727-100QF TO UNITED PARCEL SERVICES (UPS).
DECEMBER 1995: BEGINS MAERSK AIR UK LTD (MSK) OUT OF BIRMINGHAM, ENGLAND. TO CORK, AMSTERDAM, COPENHAGEN, LYONS, MILAN, NEWCASTLE & STUTTGART.
2 737-300 (PS862; PS863) DELIVERIES. NEXT YEAR, TO REPLACE AGING BAC 111'S, WITH 3 737-500'S, 114 PAX, TO LEASE 2 737-300'S TO DEUTSCHE BA (DBA) IN 1/ & 4/96.
JANUARY 1996: 1995 = .790M PASSENGERS (PAX).
FEBRUARY 1996: 1 737-400 (CFM56-3C1), EX-ICELANDAIR (ICE) DELIVERY.
MARCH 1996: CODE SHARE WITH (KLM) ((MRS) 737-500), BILLUND TO AMSTERDAM (AMS), & (KLM) (SAAB 340B), (AMS) TO TIRSTRUP.
1 737-300, EX-MONARCH AIRLINES (MON) DELIVERY.
APRIL 1996: 1995 FISCAL YEAR (FY) = +#150 DM (+14%).
TO INVEST $2M IN HANGAR, WITH INCREASE TO TWICE ITS PRESENT SIZE.
1 737-500 DELIVERY. +2 ORDERS 737-500 FOR $240M (STILL HAS 5 OPTIONS). 1 BAC 111-500 (SPEY 512-14DWE), EX-EUROPEAN AIR CHARTER (EUL).
JULY 1996: 6TH 727-100F (RR TAY), ALL 6 LEASED UNTIL 11/98.
AUGUST 1996: FLEMMING LOWE, QUALITY CONTROL DIRECTOR, REPLACES R FREDRICKSON, WHO RETIRED.
SEPTEMBER 1996: FLS AEROSPACE FOR COMPONENT MANAGEMENT SUPPORT FOR 3 737-500'S.
MAERSK AIR (MRS) IS INSTALLING COLLINS, MULTI-MODE RECEIVER (MMR), LANDING SYSTEM. A STANDARD GLU-900 MMR COMBINES INSTRUMENT LANDING & GLOBAL NAVIGATION, SATELLITE SYSTEM, FUNCTIONS, INTO A SINGLE UNIT. A MICROWAVE LANDING SYSTEM IS OPTIONAL. SEEN AS A COST SAVING, TO PREPARE FOR TRANSITION TO SPACE BASED LANDING SYSTEMS. TO BE CERTIFIED ON (MRS) 737-700, IN 10/97.
1 727-100F (RR TAY), (UPS) LEASED. FARNBOROUGH, 3 ORDERS 737-500'S (12/97). 1 737-500 (PT128) DELIVERY.
OCTOBER 1996: 1 737-400 & 1 737-500 DELIVERIES.
NOVEMBER 1996: LONDON TO AALBORG IN NORTH DENMARK.
1 737-500 DELIVERY.
JANUARY 1997: 1 737-5L9 (PP125) LEASED TO MAERSK UK (MSK).
MARCH 1997: 1 737-500 DELIVERY (49TH) (PT133) (CFM56-3C-1).
APRIL 1997: 1,200 EMPLOYEES.
NEARING COMPLETION OF NEW HANGAR, AT COPENHAGEN KASTRUP AIRPORT, FOR 737-800'S.
2 ORDERS (9/98) 737-500 FOR $72M.
JUNE 1997: BILLUND TO BERGEN (737-500).
JULY 1997: CONSIDERING EMBRAER EMB-145, OR CANADAIR RJ, AS REPLACEMENT FOR F 50'S.
AUGUST 1997: COOPERATIVE AGREEMENT, CODE SHARE, WITH SWISSAIR (SWS), TO GENEVA (737-500).
SOLD 737-300 (27924) AND LEASED BACK.
SEPTEMBER 1997: BJARNE HANSEN, CHAIRMAN (1/98) REMAINS AS PRESIDENT TIL THEN. FLEMMING KNUDSEN, PRESIDENT (1/98).
CODE SHARE WITH AIR FRANCE (AFA), BILLUND TO PARIS.
OCTOBER 1997: FY 1996 = #119M DK (+#203M DK): 2.482M PAX (2.092M), 2,400 EMPLOYEES (2,202).
1 727-100F, (UPS) LEASED, BASED AT COLOGNE HUB. NOW 7 727-100F'S. 1 737-500 DELIVERY.
NOVEMBER 1997: 737-500 (PT134) DELIVERY.
DECEMBER 1997: 3/12 ORDERS (3/98) BOMBARDIER CRJ 200LR'S.
JANUARY 1998: 737-500 (PT121) RETURNED FROM (AAR). 737-300 (CFM56-3C1), EX-DEUTSCHE BA (DBA).
FEBRUARY 1998: SELLS 737-500 (PS862), TO SANWA CREDIT CORPORATION FOR PRIVATE AIR (PTS) AS VIP AIRPLANE. 10TH 737-500 (PT135) DELIVERY.
MARCH 1998: BECOMES 1ST 737-700 OPERATOR IN EUROPE, WITH 1ST DELIVERY 737-7L9 (10-28004) (53RD 737 DELIVERED TO MAERSK AIR (MRS). SELLS 737-300 (PP520) TO SANWA CREDIT, LEASED TO GB AIRWAYS (GBA). 2ND 737-7L9 DELIVERY.
APRIL 1998: 1,200 EMPLOYEES.
1ST Q = 77M RPK (PASSENGER TRAFFIC), 177K FTK (FREIGHT TRAFFIC), 135K PASSENGERS (PAX).
737-300 (PS601) RETURNED TO LESSOR, ORIX (OAX), AFTER "D" CHECK AT SHANNON AEROSPACE. SELLS 2 737-3L9 (25150; 25360) TO VASP (VSP). 737-3L9 (PS863) ALSO TO BE SOLD TO (VSP). BAC 111-501 (178) RETURNED.
MAY 1998: 3RD 737-7L9 DELIVERY. 737-300 (PS601) SOLD TO VASP (VSP).
JULY 1998: 3 F 50'S RETURNED TO LESSORS.
OCTOBER 1998: 737-5L9 DELIVERY (3076-29235) DELIVERY. 737-5L9 (2784-28083) LEASED TO ESTONIAN AIR (ENA). F 50 (20149) RETURNED TO FINOVA, LEASED TO AIR BALTIC (BAU).
NOVEMBER 1998: 737-3L9 (2692-27834), RETURNED TO SANWA, TO GB AIRWAYS (GBA). 737-7L9 (CFM56-7B22) DELIVERY.
FEBRUARY 1999: OLE DIETZ, PRESIDENT.
PLANS TO LEASE 1ST 737-700 TO GALAXY AIRWAYS (GLY). 737-500 (PT127) LEASED TO MAERSK UK (MSK). 737-7L9 DELIVERY (203-28008, OY-MRF).
APRIL 1999: 1,358 EMPLOYEES.
1ST 4 MONTHS = 157M RPK, 233M FTK, 212K PAX.
737-3L9 (1775-24569) RETURNED TO LESSOR, LEASED TO FRONTIER AIRLINES (FRO).
JUNE 1999: 2 F 50'S (20153, 4), (CSV) 2 YEAR LEASED. 1 737-700 LEASED TO AIR ROSE (RSE) (20440).
AUGUST 1999: FY 1998 = 1.95M PAX (MRS); 615K (MSK), +#137M DKK.
OCTOBER 1999: 737-7L9 (396-28010, OY-MRG) DELIVERY. 3 737-3L9'S (2059-25125; 250-6441; 77-2, SOLD TO INDIGO AVIATION (INZ), RETURNED FROM DEUTSCHE BA (DBA).
NOVEMBER 1999: 2ND 737-700 (YA202), LEASED TO (RSE). 3 ORDERS CRJ-200'S, MAERSK UK (MSK) (4/00). 1 ORDER (10/00) 737-700, FOR TOTAL 8 ORDERED, 7 DELIVERED.
DECEMBER 1999: 2 F 50'S SOLD TO FLYING ENTERPRISE. F 50 (20127) RETURNED FROM ESTONIAN AIR (ENA), RETURNED TO LESSOR.
FEBRUARY 2000: IN 3/00, TO LISBON, AND BILLUND - DUBLIN (737-500).
LEASE OF 737-700 (YA202) TO (RSE), IS ON HOLD. 1 737-500, LEASED TO MAERSK UK (MSK), WHILE THEIR AIRPLANES ARE IN HEAVY MAINTENANCE (28128), TIL 4/00.
MARCH 2000: 2 737-7L9'S (28004; 28005) LEASED TO AIR MALTA (MLT), TIL 10/00. F 50 (20153) LEASED TO ESTONIAN AIR (ENA).
APRIL 2000: BILLUND TO STOCKHOLM, FRANKFURT, & COPENHAGEN; AND COPENHAGEN TO KRISTIANSAND AND BORNHOLM.
737-3L9 (2059-25125), RETURNED TO PEMBROKE (PEB). 737-5L9 (28083), RETURNED FROM ESTONIAN AIR (ENA). 1 727-100F (E5427) RETURNED TO (UPS). 1ST CRJ-200 DELIVERY, 48 PAX. 737-5L9 (28083) LEASED TO TAROM (TRM).
JUNE 2000: 737-3L9 (24571), RETURNED TO TOMBO (TOM), LEASED TO CHINA SOUTHERN (GUN).
MAERSK AIR (MRS) GROUP 1999 = +$15.12M (+$18.5M) (NET PROFIT).
JULY 2000: IN 10/00, TO CAIRO (4/WEEK), & ISTANBUL (3/WEEK). IN 11/00, TO ISTANBUL & CAIRO (737-500/-700).
1999 = 2.1M PASSENGERS (PAX) (+7.5%); 1,321 EMPLOYEES (+4.8%).
SEPTEMBER 2000: CHRISTIAN ANTVORSKOV, DIRECTOR QUALITY CONTROL.
OCTOBER 2000: 1 737-7L9 (682-28013, OY-MRH) DELIVERY.
NOVEMBER 2000: SELLS 2 737-7L9'S (10-28004, /98 OY-MRA; 11-28005, /98 OY-MRB), RETURNED FROM AIR MALTA (MLT), TO GECAS (GEH), LEASED TO GOL TRANSPORTES (GOT).
DECEMBER 2000: 3 CL-600-2B19'S (7247; 8; 83), TRANSFERRED FROM MAERSK UK (MSK).
FEBRUARY 2001: 1 737-7L9 (76-28014, OY-MRI) DELIVERY.
MARCH 2001: 1 737-7L9 (785-28015, OY-MRJ) DELIVERY. 1 F 50 (20148) RETURNED TO LESSOR. 1 737-5L9 (24778) LEASED TO AIR MALTA (MLT), TIL 11/01. 1 737-5L9 (28996), LEASED TO (LOT) POLISH, FOR 3 YEARS.
APRIL 2001: 1 737-5L9 (2823-28129) RETURNED TO TOMBO (TOM).
JULY 2001: TROELS DILLING, CHAIRMAN, REPLACES BJARNE HANSEN. FLEMMING IPSEN, MANAGING DIRECTOR, REPLACES OLE DIETZ. EXECUTIVE RESIGNATIONS WERE DUE TO MAERSK AIR (MRS) AND SCANDINAVIAN AIRLINES (SAS) BEING FINED BY THE ERUOPEAN COMMISSION (EC), FOR COLLUSION, IN RUNNING A MONOPOLY, ON THE STOCKHOLM - COPENHAGEN ROUTE.
SEPTEMBER 2001: 1 757-24APF (25462), AND 1 727-31C (19230), (UPS) WET-LEASED. 737-5L9 (28083) RETURNED TO TOMBO (TOM), LEASED TO AIR NIPPON (ANK).
NOVEMBER 2001: 737-5L9 (28084) RETURNED FROM MAERSK UK (MSK).
JANUARY 2002: 737-5L9 (28131) RETURNED TO TOMBO (TOM) LEASED TO AIR NIPPON (ANK).
APRIL 2002: SINCE MAERSK AIR (MRS) OWNS 49% OF ESTONIAN AIR (ENA), PLANS TO HAVE ITS 17 737-500'S "C" MAINTENANCE CHECKS DONE BY (ENA) IN TALLINN, ESTONIA.
MAIN BASE: COPENHAGEN - KASTRUP AI8RPORT (CPH).
HUB: BILLUND AIRPORT (BLL).
OWNER: A P MOLLER GROUP, DENMARK (100%). (http://www.maersk-air.com).
OWNERS/SHAREHOLDERS: A P MOLLER GROUP, DENMARK (100%).
SUBSIDIARIES/SHARES: ESTONIAN AIR (ENA) (100%); MAERSK AIR UK (MSK) (100%); STAR AIR (SDK) (100%).
DOMESTIC, SCHEDULED SERVICES: AALBORG; BILLUND; & BORNHOLM.
INTERNATIONAL, SCHEDULED SERVICES: AMSTERDAM; ATHENS; BRUSSELS; FAROE ISLANDS; FRANKFURT; ISTANBUL; KRISTIANSAND; LISBON; LONDON; PARIS; STOCKHOLM; & VENICE.
June 2002: 737-5L9 (25066, OY-MAE) returned from Maersk UK (MSK). CRJ-200ER (7617, OY-MBT) leased to Air Nostrum.
August 2002: In 10/02, to Barcelona (737-500, 3/week). In November 2002, Billund - Munich (CRJ200, 2/day).
September 2002: 737-7L9 (YA211) delivery.
October 2002: Retires 3 737-500's. 737-7L9 (1092-28012, OY-MRK) returned from Azzurra Air (AZR), wet-leased to ALPI EAGLES (ELG). 737-5L9 (1816-24778, OY-MAA), wet-leased to Estonian Air (ENA). CL-600-2B19 (7226, G-MSKK) returned to Maersk UK (MSK).
November 2002: F 50 (20154, OY-MMV) returned from Estonian Air (ENA).
December 2002: 737-5L9 (24928), returned from Maersk Air (MSK).
March 2003: Code share with SN Brussels (DAT), Billund - Brussels.
2 737-700's (28012; 28014) to be wet-leased to Sterling European (STR) 4 months from May 2003.
April 2003: 1,281 employees. SITA: CPHDSDM.
737-5L9 (28721) wet-leased to Rwandair Express (RWA).
May 2003: CL-600-2B19 (7373, OY-MBU), transferred from Duo Airways (MSK).
September 2003: Scandinavian Airlines (SAS) acquires Maersk Air (MRS)'s 49% stake in Estonian Air (ENA) for Sek 180 Million/$22.1 Million. (ENA) will continue to operate as an independent airline under its own brand. Its other shareholders are the Estonian government with (34%), & Estonian Investment Banking firm AS Cresco with (17%).
1 737-46B (CFM56-3C1) (24123, /89 31 17 EC-GRX), Futura International (FUA) 1 month wet-leased.
October 2003: Scandinavian Airlines (SAS) ends its cooperative agreement with Maersk Air (MRS).
Billund - Oslo (3/day wkdays, 1/day weekends). Next month, Billund - Kristiansand (CRJ, 2/day.
November 2003: Code share with Iberia Airlines (IBE) on Copenhagen - Barcelona/Madrid. In February 2004, code share with Continental Airlines (CAL), between both Copenhagen & Billund to London Gatwick, and between Billund and Amsterdam.
December 2003: Receives cash infusion of DKR 400 Million/EUR 53.8 Million from owner AP Moller-Maersk.
737-5L9 (24928) returned to CIT (TCI).
February 2004: Next month, Copenhagen - Nice (5/week); - Lyon/Toulouse (2/week); - Bordeaux (2/week); - Palma de Mallorca (3/week); in April 2004, - Madrid/Malaga (6/week); - Marseille (2/week); in May 2004, - Paris (CDG) (12/week); - Las Palmas (weekly). Copenhhagen - Brussels (737-700, 2/week). In April 2004, Antalya - Copenhagen (charters on behalf of Nazar).
Is now offering 4 different seating class price categories: Small (70cm/27.5 ins between seatbacks); Medium; Large; & X-Large (90cm/35 ins, & 50% wider).
March 2004: 2 737-73S's (29076; 29077), Germania (GER) wet-leased. CL-600-2B19 (7286, OY-MAV), leased to Cimber Air.
April 2004: 1,227 employees.
Next month, Copenhagen - Cairo (737-700, weekly).
2003 = -DKK 215 Million/-EUR 29 Million.
737-5L9 (29234) wet-leased to Estonian Air (ENA).
May 2004: In September 2004, Copenhagen - Bratislava (2/week); - Rome (2/week). In October 2004, Copenhagen - Las Palmas (weekly); - Cairo (El Qahira) (3/week); - Tenerife (weekly); - Warsaw (6/week); - Zurich (6/week). In November 2004, Manchester - Copenhagen (daily weekday). Copenhagen - Geneva (5/week); - Istanbul (3/week); - Funchal (weekly); - Malta (weekly).
Expects to upgrade its 737-700's by end/04 with a short-field kit supplied by Boeing, which will incl changes to flap settings. This feature is needed to replace 737-500's at Vagar, Faroe Islands, which has a 1,250m/4,199ft-long runway.
737-5L9 (28997) wet-leased to Czech Airlines (CSA). 737-5L9 (28721) wet-leased to Rwandair Express (RWA).
June 2004: Code share with Continental Airlines (CAL), Copenhagen to Billund, & London Gatwick, + Billund to Amsterdam.
737-5L9 (29235) wet-leased to (CSA). 737-73S (29078, OY-MLW), Pembroke (PEB) leased.
August 2004: Maersk Air (MRS) Logistics joined Global Freight Exchange, a reservation system for the airfreight industry.
In October 2004, Copenhagen to Munich. In November 2004, Copenhagen - Frankfurt (5/week). In April 2005, Copenhagen - Berlin (TXL). In June 2005, Copenhagen to Catania, Istanbul, and Billund to Alicante, Malaga, Nice, & Palma de Mallorca.
2 767-219ER's (23327, OY-SRF; 23328, OY-SRG), GECAS (GEF) leased.
September 2004: 2003 = 1.9 Million passengers (PAX) on scheduled services & 775,000 on charter services.
Expands its network with Copenhagen to Rome (FCO), plus in October 2004, to Gran Canaria, Cairo, Las Palmas (2/week), Tenerife, Warsaw, and Zurich, in November 2004 to Geneva, Manchester, Frankfurt, and Malta, for total routes in its network to 28. Will also expand flights from its hub in Billund. In 2005, will continue expansion with new flights Copenhagen to Berlin Tegel, Catania, & Istanbul, plus Billund to Nice, Malaga, Mallorca, & Alicante.
Fleet will remain at 6 737-500's and 13 737-700's with higher utilization. Some of its Billund-based CRJ200LR's will be leased to Danish regional Cimber Air, for operations on 5 routes from Jutland for Maersk (MRS).
October 2004: Code share with Swiss International (CSR), Copenhagen to Zurich & Geneva.
November 2004: In March 2005, Berlin - Copenhagen (737-500/-700, 5/week).
December 2004: Next month, Copenhagen - Vienna (737-700, 2/day).
737-5L9 (28996, OY-APL) leased to dba (DBA).
June 2005: Maersk Air (MRS) operates scheduled passenger services and leasing operations as well as charters for Scandinavian tour operators.
(IATA) Code: DM - 349. (ICAO) Code: DAN (Callsign - MAERSKAIR).
Parent organization/shareholders: A P Moller Group, Denmark (100%).
Owns: Star Air (SDK) (100%).
Alliances: Air France (AFA); Atlantic Airways (Faroe Islands); Cimber Air; Continental Airlines (CAL); Iberia Airlines (IBE); Kenya Airways (KEN); (KLM); Lufthansa (DKH); SB Brussels Airlines (DAT); & Swiss (CSR).
Main Base: Copenhagen Kastrup airport (CPH).
Hub: Billund airport (BLL).
Domestic, Scheduled Destinations: Aalborg; Billund; & Copenhagen.
International, Scheduled Destinations: Alicante; Amsterdam; Athens; Barcelona; Brussels; Cairo; Frankfurt; Geneva; Las Palmas; Lisbon; London; Madrid; Malaga; Malta; Manchester; Munich; Nice; Palma de Mallorca; Paris; Rome; Tenerife; Venice; Warsaw; & Zurich.
July 2005: To merge with Sterling (STR), Denmark, creating Europe's 4th-largest low-fare airline after Ryanair (RYR), easyJet (EZY), and Air Berlin (BER). Currently, some 64 airlines serve Copenhagen in a home market of fewer than 10 Million.
The new owner of Maersk Air (MRS) is Fons Eignarhaldsfelag, an Icelandic investment group controlled by Palmi Haraldsson and Johannes Kristinsson, who purchased Sterling (STR) for DKK 400 Million/$71.5 Million in March 2005 from Bonheur ASA and Ganger Rolf ASA. It also owns Iceland Express (ICX) and at one point was a large shareholder in Icelandair (ICE). The new owners named Almar Orn Hilmarsson, Managing Director, 32, ex-Iceland Express (ICX).
The merged airline will operate a fleet of 30 737-500/-700/-800's comprising 10 currently flown by (STR) and 20 belonging to (MRS). There is considerable route overlap, but the two serve 80 discrete destinations and carried a combined 5M passengers in 2004. (MRS) will continue to operate its airfreight business.
The two carriers employ 1,875 with 627 at (STR) and 1,248 at (MRS). Redundancies will occur in clerical and management staff, but significant layoffs are not anticipated among production staff such as flight crew (FC) and maintenance technicians (MT).
It will take another 2 months for the conditions to be finalized and the merger closed.
September 2005: Danish competition authorities approved the purchase of the commercial activities of Maersk Air A/S (MRS) by Fons Eignarhaldsfelag hf of Iceland and the merger between Maersk Air (MRS) and Sterling (STR). The successor company is Sterling Airlines (STR). "I am very pleased that the agreement is in place. This means that many jobs are now secure and a competitive airline company has been created for the benefit of our customers. Finally we can realize the many possibilities and advances ahead of us," Sterling (STR) CEO Almar Orn Hilmarsson said in a statement. Integration of the carriers will take about 18 months, (STR) said. The Maersk (MRS) brand will continue to be used for a short period. The combined airline operates 30 airplanes and becomes the largest LCC in Scandinavia and the fourth-largest in Europe, carrying 5 million passengers annually.
Icelandair (ICE) owner FL Group said last week that it is in talks with Sterling (STR) owner Fons Eignarhaldsfelag on an investment in or purchase of (STR) and Maersk Air (MRS). Fons received regulatory clearance to move forward with the purchase of the air assets of (MRS) from A P Moeller last week. Talks between Icelandair (ICE) owner FL Group and Sterling (STR) owner Fons Eignarhalsfelag over a possible merger or acquisition may be close to fruition. According to Danish media, FL Group will acquire (STR), which itself is being merged with Maersk Air (MRS) of Denmark. FL Group (ICE) also owns 13.01% of easyJet (EZY).
October 2005: Flexing its muscle following its acquisition of Maersk Air (MRS), Sterling (STR) announced it intends to open a base in Helsinki next spring and offer services to 11 European destinations from the Finnish capital.
The carrier initially is allocating two 737-700s to the base. Flights will start on March 27 to Barcelona, Bologna, Budapest, Chania, Edinburgh, Faro, Malaga, Nice, Paris Beauvais, Prague and Rome Ciampino. Ticket sales began yesterday with prices from €79 one way.
"Since it was taken over by [Fons Eignarhaldsfelag], (STR)'s goal has been to be aggressive in the market and continue to open new routes," Almar Orn Hilmarsson, Managing Director said in a statement. "There is no doubt that (STR) can gain a large market share in the Finnish low-cost market. However, our experience indicates that the market will grow in parallel with the share we take. Accordingly, we expect that there will still be room in the future for all the current low-cost players in the market."
FL Group, parent of Icelandair (ICE), as expected, reached agreement with Sterling (STR) parent Fons Eignarhaldsfelag to acquire (STR) for DKK1.5 billion/$241 million including DKK1.1 billion in cash and DKK400 million worth of shares in FL Group.
The purchase price is subject to Sterling (STR)'s achieving (EBITDA) for 2006 of at least DKK345 million. Should it fall short, the price may be reduced by up to DKK500 million. Conversely, it may be increased if Sterling (STR) exceeds its cash flow target. FL will take over operation of the carrier on January 1, subject to approval of relevant competition authorities.
Sterling (STR), which recently absorbed Maersk (MRS), will be operated as an independent company focusing on charter and tourism markets with an emphasis on southern Europe. It operates 30 737s and expects to carry 5.2 million passengers next year. Palmi Haraldsson will continue as chairman of the airline's board with Almar Orn Hilmarsson staying on as CEO.
In tandem with the purchase, FL Group proposed a share offering to raise ISK44 billion/$733 million, boosting equity to ISK65 billion. Offer price is ISK13.6 per share and the company has received pledges for ISK39 billion, with the remaining ISK5 billion to be sold in a fully underwritten stock offering.
"With this share capital increase, we are making a fundamental change in the company," said former FL Group Chairman Hannes Smarason, who replaced Ragnhildur Geirsdottir as CEO. "Our aim is to become a leading significant influence investor, with focus on Europe." After the acquisition of Sterling (STR), annual revenues will be ISK100 billion.
FL Group has been restructured to separate airline and tourist service operations from investment activities. Icelandair (ICE) Group will handle Icelandair (ICE), Icelandair Cargo, Loftleioir-Icelandic, Icelandair Technical Services and Icelandair Ground Services. In combination, these companies represent about a third of total FL Group turnover and employ around 2,000. Jon Karl Olaffson, currently Icelandair (ICE) CEO, is now head of the Group.
Bluebird Cargo (BLS) and Flugflutningar will be combined in a separate subsidiary. Companies involved in domestic tourist activities make up the third grouping, with Sterling (STR) being the fourth.
The investment activities likewise have been separated into three divisions: Private Equity, Asset Management and Portfolio Investments, and Icelease, which will be involved in aircraft leasing and finance activities.
FL Group, parent of Icelandair (ICE) and Sterling (STR)/(MRS), raised its stake in easyJet (EZY) from 13.99% to 16.18%.
December 2005: The European Commission (EC) cleared the acquisition of sole control of Copenhagen Airports of Denmark by Macquarie Bank Group subsidiary Macquarie Airports Copenhagen. Copenhagen Airports owns and operates airports in Kastrup and Roskilde. The operation was examined under the simplified merger review procedure.
January 2006: FL Group of Iceland (ICE) purchased 6% of Finnair (FIN), adding to airline holdings consisting of Sterling (STR), Maersk Air (MRS), and 16% of EasyJet (EZY), which has been the subject of recent takeover speculation. The investment in Finnair (FIN) brings the total holding by Icelandic (ICE) interests in the Nordic airline to 18%. The Finnish government has control with 57%. Finnair (FIN) plans to add an eighth long-haul airplane to support its Far East expansion, which could be an A340-300 rather than another MD-11 "depending what is available on the market," a spokesperson said. It ordered nine A350-900s and three A340-300Es in December. The carrier transported around 8.5 million passengers in 2005, an increase of +4.5% over 2004 and a record for Finnair Group (FIN). Passenger traffic (RPK)s grew +7.2% while (ASK)s increased +5.1%. This resulted in a load factor of 72.6% LF, up +1.4 points.
February 2006: Sterling (STR), Europe's fourth-largest Low-Cost Carrier (LCC), transported 2.7 million passengers in 2005 at a load factor of 77.3% LF. (STR)'s September merger with Maersk Air (MRS) renders year-over-year comparisons less meaningful. "Sterling (STR)'s goal for 2006 is to consolidate the route network to strengthen its position. Sterling (STR) is also expected to show a profit in 2006 and that will be achieved by the turnaround we are undergoing now in connection with our corporate integration," Communications Manager Niels Brix said. The airline plans to offer up to two daily departures on its most popular routes from Copenhagen, including Berlin, Amsterdam and London. It has ended service to Vienna.
December 2006: 2 737-5L9's (24778, OY-MAA) leased by Sterling (STR) to JetTime (JTM).
January 2007: Serial airline investor FL Group (ICE) was busy over the holidays, announcing that it had purchased a 5.98% stake in American Airlines (AAL) parent AMR Corp for more than >$400 million and selling Sterling Airlines (STR) for €210 million/$277 million in cash and a three-year shareholder loan to Icelandic consortium Northern Travel, of which FL Group (ICE) is a member.
FL Group (ICE) now is AMR's third-largest shareholder with 12.8 million shares. It said it has been building the stake "for a considerable period of time" and made the announcement once it exceeded the 5% reporting threshold.
"We believe the AMR Corporation is well positioned to take advantage of the growing USA air travel market," FL (ICE) CEO, Hannes Smarason said. "The supply-demand balance has improved considerably over the last several years and the company enjoys one of the best positions in the industry to take advantage of that as well as to build auxiliary revenues."
FL (ICE) sold stakes in Icelandair (ICE) and easyJet (EZY) last year and holds 23% of Finnair (FIN). Acquired in late 2005 following its merger with Maersk Air (MRS), Sterling (STR) was the last of FL (ICE)'s wholly owned airline subsidiaries.
Northern Travel, comprising Fons (44%), FL (ICE) (34%) and Sund (22%), will be a "major force" in travel and tourism in Northern Europe, Smarason said. The sale includes the entirety of Iceland Express (ICX), 51% of UK-based Astraeus (AUA) and portions of Swedish and Danish travel agencies.
"The sale of Sterling (STR) into the larger leisure group . . . is a logical step to increase the value of Sterling (STR)," FL (ICE) said. Northern Travel expects to realize €1.26 billion in turnover and transport 7.5 million passengers this year.
"We believe that this unique combination of assets will have a great effect on the Nordic travel and tourism market," Northern Travel Chairman, Palmi Haraldsson said. "The company is heavily represented in all the Nordic countries and intends to increase its representation through various means."
August 2008: The European Commission (EC) extended the deadline for its inquiry into Air France (AFA)/(KLM)'s proposed acquisition of Martinair (MTH) by 10 working days, due to "first phase commitments" offered to alleviate competition concerns. The original deadline was August 25. (KLM) currently owns 50% of Martinair (MTH) shares and intends to acquire the other 50% from Maersk (MRS).
October 2008: Copenhagen Airports (CPH) will construct a low-cost carrier (LCC) terminal designed to "provide new opportunities for growth for the airlines during these difficult times and more cheap fares to choose from for the passengers," CEO, Brian Petersen said. Passenger charges for airlines using (CPH) "SWIFT" will be half those applied to carriers using Kastrup's main infrastructure. Airlines wanting to fly "SWIFT" will have to meet a number of efficiency requirements, including a 30-minute turnaround, while passengers will be expected to check in mainly via the Internet, a mobile phone or at self-service kiosks. The (LCC) terminal will be an extension of existing facilities and have six airplane stands, with an initial capacity of 6 million passengers annually, and the potential to double that if the need arises. Passengers will use (CPH)'s central security checkpoint and the existing baggage sorting system, helping to keep construction costs at around DKK200 million/$36.3 million. Construction is expected to commence in early 2009 and operations are expected to start in the summer of 2010.
NOW PART OF CIMBER STERLING (STR). SEE (STR).
Click below for photos:
9 727-100QF, (UPS) LSD & OPS (SEE (SDK). 19230 WET-LSD 2001-09.
0 737-3L9 (CFM56-3) (2077-25122, RF (DBA) 1999-09), 26441 RTND (PEB) 1999-10, 2059-25125, RTND (PEB) 2000-04; 24571 RTND (TOM), LST (GUN) 2000-06, (2587-27336, /94, LST (GFL); 2594-27337, /94 D-ADBI, LST (DBA). 4 LST (VSP), 6 LST (DBA).
1 737-400 (CFM56-3C1), EX-(ICE).
0 737-46B (CFM56-3C1) (1663-24123, /89 EC-GRX), (FUA) WET-LST TIL 2003-10.
7 737-5L9 (CFM56-3C1) (1816-24778, /90 OY-MAA; 2038-25066, /91 OY-MAE; 2788-28084, /96 OY-APB; 2856-28721, /97 OY-APH; 2868-28722, /97 OY-API; 2947-28995, /97 OY-APK; 2998-28996, /98 OY-APL; 3008-28997, /98 OY-APN; 3068-/98 OY-APP; 3076-29235, /98 OY-APR). 24778; 25066; LST (MSK). 24778 LST (MLT) TIL 2001-11, 28996 LST (LOT) 2001-03 FOR 3 YRS. 25066 RF (MSK) 2002-06. 24778 WET-LST (ENA) 2002-10. 24928 RF (MSK) 2002-12. 28721 WET-LST (RWA) 2003-04. 24859; 24928; RTND (TCI) 2003-12. 24778 RF (ENA) 2004-03. 28896 RF (LOT) 2004-04. 29234 LST (ENA) 2004-04. 28997 WET-LST (CSA) 2004-05. 28721 WET-LST (RWA) AGAIN 2004-05. 29235 WET-LST (CSA) 2004-06. 28996; LST (DBA) 2004-12. 24778; LSD BY (STR) TO (JTM) 2006-12. 104Y.
0 737-5L9 (CFM56-3) (2784-28083, /96 ES-ABE), (TOM) LSD, WET-LST (TRM) 2000-05, RTND (TOM), LST (ANK) 2001-09. 104Y.
0 737-5L9 (CFM56-3) (2817-28128, /96 OY-MAF; 2823-28129, /96 OY-APC; 2825-28130, /96 OY-APD; 2828-28131, /96 OY-APG), (TOM) LSD. 28129 RTND 2001-04; 28131, 2002-01, LST (ANK). RTND. 104Y.
10 +2 OPTIONS 737-7L9 (CFM56-7B22) (26-28006, /98 OY-MRC; 136-28007, /98 OY-MRD; 136-28007, /98 OY-MRE; 203-28008, /99 OY-MRF; 396-28010, /99 OY-MRG; 682-28013, /00 OY-MRH; 766-28014, /01 OY-MRI; 1092-28012, /02 OY-MRK; 1203-28011, /02 OY-MRL), 28004; 28005; RF (MLT) 2000-11. 28004; 28005; ST (GEH), LST (GOT) 2000-12. 2 LST (RSE) 1999-06. 28012 RF (AZR) 2002-10, WET-LST (ELG) & RF (ELG). 28012; 28014; WET-LST (STR) 5 MTHS 2003-05. 148Y.
2 737-73S (CFM56-7B22) (98-29076, /98 OY-MEY; 104-29077, /98 OY-MEZ), (PEB) LSD. 148Y.
1 737-73S (CFM56-7B22) (187-29078, OY-MLW), (PEB) LSD 2004-06. 148Y.
1 737-75B (CFM56-7B22) (68-28106, /98 OY-MLW), (PEB) LSD. 148Y.
0 757-24APF (PW2030) (25462), (UPS) WET-LSD 2001-09. RTND.
0 767-219ER (134-23327, OY-SRF; 149-23328, OY-SRG), (GEF) LSD 2004-08. 23327; 23328; TO (SDK) 2005-04.
2 F 50, 1 RTND TO LESSOR, 1 LST (ENA), 1 LST (TLL), 20148 RTND TO LESSOR 2001-03. 20154 RF (ENA) 2002-11. 20154 LST (MID) 2003-06. 20153 RF (ENA) 2003-10, LST (BAU).
0 HS-125-800A, REPLACED BY CANADAIR CHALLENGER 601-3R.
5 +0/9 OPTIONS BOMBARDIER CRJ-200LR (CF34-3B1) (7436, /00 OY-MBI; 7442, /00 OY-MBJ; 7617, /02 OY-MBT; 7373, /00 OY-MBU, EX-(MSK) 5/03), (7242; 7247; /98 OY-MBP; 7248, /98 OY-MBR; 7283), (MSK) LSD (2000-04). 7617 LST AIR NOSTRUM 2002-06. (7386, /00 OY-MAV), LST CIMBER AIR 2004-03. 7436 TO CIMBER AIR 2004-11. 48Y.
1 CANADAIR CHALLENGER 6L-604 (CF34-3B) (5430, /00 OY-MMM), REPLACED HS 125-800A BUSINESS JET. EXEC. 10F.
BENT CARLSEN, CHAIRMAN.
ALMAR ORN HILMARSSON, MANAGING DIRECTOR, EX-(ICX), (2005-07).
FINN OELUND, PRESIDENT.
MICHAEL TONNES JORGENSEN, CHIEF FINANCIAL OFFICER (CFO), FINANCE & INFORMATION SYSTEMS.
KLAUS REN, VP FLIGHT OPERATIONS, RESIGNED TO JOIN JET TIME AIRLINES (JTM).
OLE SKYTTE-PETERSEN, VP AIRCRAFT MANAGEMENT (2000-12).
MICHAEL VILLUMSEN, VP TECHNICAL (CPHTCDM) (1996-10).
JAN TOPLUND, VP TECHNICAL OPERATIONS, RESIGNED TO JOIN JET TIME AIRLINES (JTM).
JASPER PARUP, VP CORPORATE AFFAIRS.
KELD CHRISTENSEN, VP SCHEDULED SERVICES.
ANN VON GLASOW, VP COMMERCIAL SERVICES.
PETER SCHLUTTER, VP PERSONNEL.
LARS HARRILD, DIRECTOR PRODUCTION (2001-12).
OLE THOMSEN, DIRECTOR AIRPLANE LEASE & TECHNICAL SALES (2000-04).
J SIECKER, DIRECTOR MAINTENANCE SERVICES.
CHRISTIAN ANTVORSKOV,, DIRECTOR QUALITY CONTROL (QC) (2000-09).
PER KNUDSON, DIRECTOR PLANNING/LOGISTICS (2001-12).
TERRY MCGUIRE, TECHNICAL SERVICES MANAGER, EX-(ATD).