Sweden's newly-formed transport authority has revoked the operating licence of carrier Nordic Airways after the company ran into financial problems.
Nordic Airways, which operates out of Stockholm Arlanda, uses Boeing MD-80 aircraft on wet-lease and charter contracts.
The carrier has previously conducted flights for such airlines as Air Berlin, Spanair and Germanwings, and its activities had included performing services to cities in Iraq.
But the Swedish authority Transport Styrelsen - established on 1 January and charged with regulating civil aviation - says it has ordered the carrier's grounding over its economic situation.
"The company may not continue to fly," says the authority, citing European Union conditions for holding an operating licence.
It says Nordic Airways has had financial difficulties "for some time" and points out that the carrier filed for restructuring last October. Later that month Swedish authorities gave the airline a temporary operating licence, valid until 15 February this year.
"Since then Stockholm's district court has rejected the company's request for an extension of this restructuring," says Transport Styrelsen.
"Nordic Airways' reorganisation has therefore ceased and we consider that the company cannot fulfil its commitments and obligations towards its passengers."
No-one at Nordic Airways, which is affiliated with the brand Nordic Leisure, could immediately be reached to comment.
Source: Air Transport Intelligence news