Volcano blamed as Swedish start-up ceases operations

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Ash disruption from the Icelandic volcanic eruption is being blamed directly for the collapse of a new regional airline in Sweden.

The start-up carrier, Flyglinjen, had been established to operate initially from the city of Jonkoping to Stockholm Bromma, using wet-leased turboprop aircraft. It had also identified Copenhagen as an early destination.

But it is axing services, attributing its decision to the disruption resulting from last month's eruption of the Eyjafjallajokull volcano.

"We have been forced to cancel all flights," says the company. "The reason is the poor economic situation, caused by the problems encountered in relation to the Icelandic volcanic ash."

Flyglinjen says it is seeking new investors to relaunch services "as soon as possible". Five entrepreneurs had originally backed the carrier's creation.