A.P. Moller-Maersk to sell Maersk Air

A.P. Moller-Maersk to sell Maersk Air

   A.P. Moller-Maersk has agreed to sell the scheduled services and charter activities of Maersk Air A/S to Icelandic Fons Eignarhaldsfelag hf.

   Financial details of the deal have not been disclosed. “The sale will have a positive yet modest effect on A.P. Moller-Maersk A/S’s 2005 result,” A.P. Moller-Maersk said.

   Star Air A/S, which carries out A.P. Moller-Maersk’s intra-European freight flights, is not included in the deal.

   “For a long period Maersk Air A/S has worked to ensure a profitable operation in the highly competitive aviation market in Europe. This has proven difficult being a small airline,” A.P. Moller-Maersk said.

   Fons Eignarhaldsfelag plans to merge Maersk Air with another recent acquisition, Scandinavian low-cost airline Sterling Airways.

   “We will naturally make sure that all obligations and contracts involving both Maersk Air and Sterling will be adhered to. The merged company will continue to base its business on the two main corridors of scheduled and charter traffic,” said Almar 'rn Hilmarsson, Sterling Airways chief executive officer.

   Hilmarsson will maintain his position with the merged company although the location of the new organization's headquarters has not yet been decided.

   The existing aircraft fleet will remain within the A.P. Moller-Maersk group and be leased to Sterling Airways for periods of up to six years.

   Maersk Air and Sterling Airways both admit that job losses will occur as a result of the merger, “mainly within the administrative functions,” A.P. Moller-Maersk said.

   Flight personnel will not be affected, Hilmarsson said.