Sterling Airways to file for bankruptcy

Icelandic-owned budget carrier Sterling Airways A/S said it will file for bankruptcy Wednesday because of the financial meltdown.

The airline, which is based in Denmark, said it was unable to raise financial support for a restructuring program due to the collapse of the Icelandic financial system.

"During the last few weeks, the management, board of directors, and the shareholder of Sterling Airlines A/S have been fighting a battle to keep the company alive," the airline said in a statement on its Web site on Wednesday. "Sadly, this has not had a positive outcome, and we have therefore decided to file for bankruptcy which will be done later …