Copenhagen - Thousands of passengers scrambled Wednesday to find alternative transport after the bankruptcy of low-cost Danish airline Sterling Airlines.

The airline Wednesday filed for bankruptcy and grounded all flights with immediate effect.

The some 1,100 employees were later informed that they had not been fired but were to remain at the disposal of the liquidators.

In a statement on its website, the airline cited that it had been impacted by the global financial recession that started in the autumn of 2007 and led to a "stagnation in the market."

Copenhagen - Low-cost Danish airline Sterling Airlines announced Wednesday it was to file for bankruptcy and has grounded all flights stranding thousands of passengers.

In a statement on its website, the airline cited that it had been impacted by the global financial recession that started in the autumn of 2007 and led to a "stagnation in the market."

The carrier also cited "significant fuel cost increases" as a factor that contributed to its problems, as well the global credit crunch that impacted its main shareholders in Iceland.

The Sterling statement said that passengers who had bought tickets online would not be refunded and would have to seek alternative flights home.

Frankfurt - German airline Lufthansa AG joined on Tuesday the growing list of European companies issuing profit warnings after high fuel costs hit the group's earnings.

Vienna  - Soon-to-be privatized flag carrier Austrian Airlines AG reported Tuesday it lost 16.4 million euros (20.5 million dollars) in the third quarter, down from a profit of
29.2 million euros in the same period last year.

Deutsche Lufthansa AG and Russian domestic carrier S7 have both submitted bids to take over the 42.75-per-cent stake in Austrian Airlines which is currently held by the government.

Operating income showed a deficit of 9.4 million euros between July and September, due to high fuel costs, lower earnings on long- distance routes and price pressure from budget carriers, the report said.

London, Oct 28 : British Airways has stopped being the UK’s national carrier and effectively become London Airways. 

Though the airline still operates flights from Manchester, Newcastle, Edinburgh, Glasgow and Aberdeen, but passengers choice of destination from these cities is limited: They can fly to any other city they like – so long as it is London, The Independent reported. 

At the weekend, the airline axed the last international flight that neither departed from nor arrived at one of the London airports, the 44-year-old link from New York to Manchester. 

The slots at JFK have been redeployed for a new BA route from Gatwick. 

In the times of financial meltdown and rising oil prices, the aviation industry had to suffer a lot. Since it seems that the industry is finding it hard to pay dues to the airports, it has called for government intervention to pay it in installments, in the same manner as they have been allowed to pay for the fuel.