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Airline closure brings job losses Airline closure brings job losses
(about 12 hours later)
An Aberdeen-based airline has confirmed that it has ceased operations, with the loss of 55 jobs.An Aberdeen-based airline has confirmed that it has ceased operations, with the loss of 55 jobs.
City Star Airlines had been suffering from extreme financial difficulties since one of its four planes was grounded following a runway accident.City Star Airlines had been suffering from extreme financial difficulties since one of its four planes was grounded following a runway accident.
Aberdeen Airport impounded another of the firm's aircraft on Wednesday as the airline's finances worsened.Aberdeen Airport impounded another of the firm's aircraft on Wednesday as the airline's finances worsened.
City Star said customers with reservations should contact their booking agent or credit card company.City Star said customers with reservations should contact their booking agent or credit card company.
One of City Star's aircraft was grounded after being involved in an accident at the airport in November.One of City Star's aircraft was grounded after being involved in an accident at the airport in November.
Managing director Runar Fossadal Arnason said: "Unfortunately the incident has had a major knock-on effect and we have simply not been able to recover from this and as of midnight have ceased all operations."Managing director Runar Fossadal Arnason said: "Unfortunately the incident has had a major knock-on effect and we have simply not been able to recover from this and as of midnight have ceased all operations."
Knock-on effect
Anne Begg, MP for Aberdeen South, claimed the decision was bad news for the Aberdeen economy.
She added: "It is clear that it is not the lack of business but problems with their aircraft, which has caused them to cease operations and therefore I hope that if City Star cannot continue then another airline could take up the opportunity and re-employ the 55 staff who are facing redundancies."
The airline operated services between Aberdeen and a number of Scandinavian destinations.The airline operated services between Aberdeen and a number of Scandinavian destinations.
City Star Executive, a different arm of the business, hopes to press ahead with plans to fly between Aberdeen and Texas later in the year.City Star Executive, a different arm of the business, hopes to press ahead with plans to fly between Aberdeen and Texas later in the year.