Icelandic charter operator Icejet has suspended its executive flying operations after failing to agree a new lease deal with the resolution committee of collapsed financial institution Landsbanki Íslands, which owns its four-strong Dornier 328Jet fleet.
Lansbanki Íslands, which is being wound up following nationalisation by Iceland's government in 2008, assumed ownership of the four jets in March, after Icejet's parent Nordic Partners became another victim of the financial crisis. It also owns a fifth, VIP-configured 328Jet, which is undelivered.
Icejet - which operated three 14-seat VIP-configured 328Jets and a 19-passenger version - began operations five years ago, and its clients have included leisure travellers and touring parties such as pop groups and sports teams. In 2007, it operated the first flight of a 328Jet into London City airport.
The carrier's strategy has focused on mainland Europe after Iceland's banking system collapsed in October 2008, bringing down Kaupthing and Glitnir as well as Landsbanki and its internet bank Icesave.
Icejet says it is in the process of restructuring. It continues to manage the operation of ILC Aviation's Dornier 328 services between Milan and Farnborough.