Nordic budget airline Sterling files for bankruptcy

by Anna Brones on

These are not great economic times, and they’re taking a toll on the travel industry. Icelandic-owned and Denmark-based Nordic budget airline Sterling announced today that it will file for bankruptcy, halting all of its aircraft. The slowdown of the travel market and rising oil prices put financial strains on the airline a year ago, but now with the fall of the Icelandic economy, and hence the funds of the airline’s owner, Sterling had no choice but to call it quits.

And although things are obviously bad for the airline, things aren’t any better for its passengers: the halting of flights has left thousands of them stranded at airports across Europe. Sterling announced that tickets purchased online at the Sterling website would not be refunded, nor would return flights be honored. Coming to the rescue, rival airline Scandinavian Airlines announced that it would offer Sterling passengers and crew members seats on its flights to Copenhagen, depending on availability. But that will only help a small handful; all in all, an estimated 40,000 customers are said to be affected by the bankruptcy.

November Iceland roadtrip: “You’re an idiot”

by Jerry Guo on

A lot of foreigners are taking advantage of the ridiculously depreciated Icelandic krona and flying there this winter. Which is a bit weird because it’s Iceland. And winter.

As one Icelandic native said to me, “The nation is surviving right now on foreign journalists and tourists.”

I’m in the middle of figuring out the logistics of my trip. My top priority is booking a rental car and hopefully making it around the 800 or so mile of the ring road, an epic journey that will take me all the way around the island. Alas, here’s what the local guru had to say about my foolhardy idea:

Unless you’re an extremely skilled winter driver, I highly, highly discourage you from driving the Ring Road in late Nov. Roads aren’t salted and though even the rental cars have studded tires, the conditions are freakishly scary and just not something an utlengur (foreigner) should be doing. Even the road between Keflavik (the airport) and Reykjavik can be treacherous. Take my word on this… not a good idea. Also, late November is really dark. You’ll have only a few hours of light a day, which makes conditions even worse and not good for a travel piece.

Gadling Take FIVE: Week of October 12- October 17

by Jamie Rhein on

This week Gadling picked up another blogger Mike Barish who considers Lunchables unusual food.

When I browsed the week’s offerings, money popped out as one of the prevailing themes. With the stock markets doing a roller coaster act, forgetting that the ups give riders a reprieve, it’s no wonder.

  • Scott’s post on American Airlines possible plan to do àla carte pricing offers great suggestions for getting the most umph out of the dollars you fork over for flying.
  • In another managing your travel money venture, Grant outlined how a person can take a short cut to Gold status for Hilton Hotels. Gold status offers more perks and deals.
  • When it comes to traveling in Europe, Jeffery delved into how the current financial crisis might be making European jaunts a cheaper venture for Americans. Considering that I’m heading to Denmark in December, that’s happy news.
  • Aaron wondered just how rich he is and found out that he’s the 730 millionth richest person in the world. His post points out how you can find out your own financial standing in the world. Perhaps the news will give you the feeling that you can afford at least a mini vacation to the next town over.
  • And to round it off, although there is more, Jerry is on the quest for cheap travel in Iceland. He’s already scored a $400 RT ticket. Not bad, Jerry.

Also, for anyone who is looking for some Gadling glory, check out our series Catching the Travel Bug. We’re looking for your stories and will publish our reader submitted favorites.

Iceland on the cheap: Am I the worst person in the world?

by Jerry Guo on

So I just took advantage of Grant’s tipoff last week to $400 roundtrip airfare to Iceland. I’m flying out of Boston the weekend before Thanksgiving, and staying for a week. And I believe my flight came out to something like $550, not bad at all for a departure on Saturday and return on Sunday.

Now I’m trying to scoop up some dirt-cheap hotel rooms, a rental car, and hmm, maybe a mid-sized bank somewhere. Yes, I do feel a bit awkward just parachuting into a country that’s, according to news today, running out of food in 3-5 weeks.

It’s a beautiful country, but I’m almost more excited to go walk down Main Street and just see what a “bankrupt” country is like, in the dead of winter no less. I mean, when does that ever happen? Or did I just speak too soon.

On a related note, I’m working on a research paper about Iceland’s economic collapse, and it’s somewhat humorous to read the predictions made by distinguished economists from just a couple years back. Take this one from 2006, posted on the Icelandic consulate’s website:

“Recent volatility in Iceland’s asset markets has raised concerns about the fragility of Iceland’s economy,” comment Frederic S. Mishkin and his co-author Tryggvi T. Herberrtsson in their report, “Financial Stability in Iceland.” But these concerns, particularly those that raise comparisons with certain financial issues in emerging market countries, are “misguided.”

Ha! Oh, that reminds me. I have to go get a visa from that consulate … whoops.

Iceland’s economy turns away from finance to —- tourism!

by Grant Martin on

With the financial sector steadily imploding, Iceland is in a bit of trouble. As Aaron wrote about earlier this week, much of the Atlantic island’s economy was built upon credit and finance, and now that those industries are failing, the country needs extra income to keep up its highbrow status.

And where else can you quickly reap foreign investment but in tourism? Iceland Air, long one of the premium transatlantic carriers (if you want to stop in Reykjavik) is leading the charge to get American dollars by offering some killer fares to the North Atlantic this winter. Book by October 21st and you can get cheap round trip tickets from New York or Boston to the Icelandic capital for only $400 plus tax.

Add the fact that the dollar is suddenly making a killing in Iceland (as of this morning, 222 Krona to 1 dollar, from 80Krona a couple of weeks ago), and you could have a pretty nice inexpensive vacation on your hands.

Check out Icelandair’s website for further details on the deal, and while you’re in town make sure to check out the ice ring road, blue lagoon (pictured) and drink with some vikings.