Söder Airlines

Söder Airlines was the trading identity associated with Söder Air and later Söder Aviation Oy, a Finnish virtual airline and internet booking agency based in Tampere. The business focused on selling and arranging scheduled and seasonal domestic air services rather than maintaining a large in-house fleet. Its principal base was Tampere-Pirkkala Airport, while Helsinki-Vantaa Airport became an additional base in early 2006 when the company no longer had active routes from Tampere. The company began operations in 2003 as Söder Air, initially using a single 50-seat Saab 2000 turboprop. Its early network connected Tampere with Finnish destinations including Kittilä, Ivalo and Oulu, with services oriented particularly toward winter travel and Lapland ski tourism. Operations were suspended after Saab Group terminated the aircraft lease. The airline subsequently resumed activity in February 2005 under the name Söder Aviation Oy. The restarted model relied heavily on wet-leased or externally operated aircraft, including an MD-82 obtained from Bulgarian Air Charter and operated by Aviapaslauga of Lithuania, as well as an aircraft operated by the Swedish company Nextjet. The relaunch did not produce a stable long-term scheduled operation. The previous operator's licence was cancelled by the Finnish Civil Aviation Administration, and the company's charter-company status was revoked by the Finnish Consumer Agency because the required collateral had not been provided. Scheduled flights ceased in May 2005. Söder Aviation later attempted to return to the market through a limited seasonal service between Helsinki and Kittilä for the 2006 spring ski season. The proposed operation was to use Alexandair of Greece, operating under the AXN code, with an ex-Austrian Airlines MD-81. Only approximately three initial return flights were completed before the remaining services were cancelled. In March 2006, the company announced a further proposal to use a semi-convertible 40-seat Antonov An-72 cargo aircraft for passenger services, with operation planned by Enimex of Estonia. Finland's civil aviation authority rejected the plan after determining that the aircraft's type certification did not permit the proposed scheduled passenger operation in Finnish airspace. Söder Aviation consequently cancelled the remaining planned flights for the spring season. The airline's financial position deteriorated at the same time. Publicly reported debts were approximately €1 million, and Finnish financial authorities seized funds from two Söder Aviation bank accounts in early March 2006. Söder Aviation Oy filed for bankruptcy at the Helsinki District Court on April 4, 2006, and bankruptcy proceedings were approved on April 7. The company therefore ended as a small, short-lived Finnish aviation venture whose business model combined virtual-airline marketing, online ticket sales and outsourced aircraft operations, but whose operations were constrained by leasing problems, regulatory action, cancelled services and financial distress.

Söder Airlines developed from Söder Air, a Finnish aviation venture established in 2003. Based in Tampere, the company operated as a virtual airline and internet booking agency, using external aviation capacity alongside its own commercial brand. Its first aircraft was a 50-seat Saab 2000 turboprop, supporting domestic services from Tampere-Pirkkala Airport to Finnish destinations such as Kittilä, Ivalo and Oulu. These routes were particularly relevant to winter tourism and travel to Lapland. The initial operation was interrupted when Saab Group terminated the aircraft lease. In February 2005, the company returned under the corporate name Söder Aviation Oy and adopted a more outsourced operating structure. An MD-82 was wet-leased from Bulgarian Air Charter and operated by Aviapaslauga of Lithuania, while another aircraft was operated by the Swedish company Nextjet. This arrangement allowed the company to market flights without maintaining a conventional fleet, but it also left the business dependent on third-party operators and regulatory approvals. The relaunch was followed by regulatory difficulties. The previous operator's licence was cancelled by Finland's Civil Aviation Administration. In addition, the Finnish Consumer Agency revoked the company's charter-company status because the collateral required for that status had not been supplied. Scheduled flights ended in May 2005, limiting the airline's active passenger operation. Söder Aviation sought to return through seasonal services aimed at the 2006 spring skiing market. It marketed three weekly Helsinki–Kittilä return flights planned for February 18 through May 1, 2006. Alexandair, a Greek operator using the AXN code, was expected to fly the route with an ex-Austrian Airlines MD-81. The service did not operate as planned: only about three initial round trips were completed, after which further flights were cancelled for reasons not publicly explained in the available account. The company then announced an alternative involving a semi-convertible 40-seat Antonov An-72 cargo aircraft. Enimex of Estonia was expected to operate the aircraft, which would have been used for passenger service between Helsinki and Kittilä. Finland's civil aviation authority rejected the proposal after concluding that the aircraft's type certificate did not authorize scheduled passenger operations in Finnish airspace. Söder Aviation cancelled the remaining flights planned for the spring ski season. Financial problems compounded the operational and regulatory setbacks. Previously published debts were reported at approximately €1 million, and Finnish financial authorities seized significant funds from two company bank accounts in early March 2006. Söder Aviation filed for bankruptcy at the Helsinki District Court on April 4, 2006. The court approved the commencement of bankruptcy proceedings on April 7. The company consequently became a defunct Finnish airline and booking venture. Its history illustrates the difficulties faced by a small virtual carrier dependent on leased aircraft, partner airlines, seasonal demand, regulatory compliance and limited financial resources.

• 2006

  Helsinki becomes an additional base

  [1]Söder Airlinesen.wikipedia.org

  The company established an additional base at Helsinki-Vantaa as it pursued seasonal services from Helsinki rather than operating routes from Tampere.

• 2006

  An-72 passenger plan rejected

  [1]Söder Airlinesen.wikipedia.org

  Finland's civil aviation authority rejected a proposed scheduled passenger operation using an Enimex-operated Antonov An-72.

• 2006

  Bankruptcy proceedings begin

  [1]Söder Airlinesen.wikipedia.org

  Söder Aviation filed for bankruptcy on April 4, and the Helsinki District Court approved the start of proceedings on April 7.

• 2005

  Operations restart as Söder Aviation Oy

  [1]Söder Airlinesen.wikipedia.org

  After the initial operation was suspended, the business resumed under a new name with aircraft supplied and operated through external aviation partners.

• 2005

  Scheduled services cease

  [1]Söder Airlinesen.wikipedia.org

  The company stopped scheduled flights after licence and charter-status problems involving Finnish authorities.

• 2003

  Söder Air begins operations

  [1]Söder Airlinesen.wikipedia.org

  The company was established and started flying as Söder Air, using one 50-seat Saab 2000 for domestic Finnish services.

A small Finnish virtual airline and online booking business focused on seasonal domestic travel, particularly access to Lapland skiing destinations, using aircraft and operating capacity supplied by partner airlines.

• Passenger aviation · 2003

  Domestic scheduled passenger flights

  The airline marketed domestic Finnish services from Tampere to Kittilä, Ivalo and Oulu, with some services routed directly and others operating through Tampere. The network was small and was especially associated with winter travel to Lapland destinations.

• Seasonal passenger aviation · 2006

  Helsinki–Kittilä seasonal service

  For the 2006 spring skiing season, Söder Aviation sold tickets for three weekly return flights between Helsinki and Kittilä. Alexandair was planned as the operating carrier, but only a few initial rotations were completed before the remaining schedule was cancelled.

• Travel booking service · 2003

  Internet booking and ticketing

  Söder Airlines functioned partly as an internet booking agency and virtual airline, selling or arranging flights that could be operated by partner carriers. The model emphasized commercial distribution and route marketing rather than ownership of a substantial aircraft fleet.

• 2006Spring skiing Helsinki–Kittilä programme

  Finland

  Söder Aviation marketed three weekly Helsinki–Kittilä return flights for the spring ski season, scheduled from February 18 to May 1, 2006. Alexandair was designated to operate the service with an MD-81.

  Outcome. Only approximately three initial return flights were completed. The remainder of the schedule was cancelled, and an alternative An-72 operating plan was later rejected by Finnish aviation authorities.

  Source

• 2006

  Launch of planned Helsinki–Kittilä ski-season serviceProduct launch

  Background

  The company attempted to re-enter scheduled passenger operations during the Finnish spring skiing season.

  Action taken

  Tickets were offered for three weekly return flights between Helsinki and Kittilä, with Alexandair selected as the operating carrier.

  Aftermath

  Only a few flights operated before the remaining services were cancelled.

  Source

• 2006

  Proposed substitution of an Antonov An-72Other

  Background

  After the Alexandair service failed to continue, Söder Aviation sought another aircraft arrangement for the Helsinki–Kittilä route.

  Action taken

  The company announced a plan to use a semi-convertible 40-seat An-72 cargo aircraft operated by Enimex of Estonia.

  Aftermath

  The Finnish Civil Aviation Administration rejected the proposal because it considered the aircraft's type certificate incompatible with scheduled passenger operations in Finnish airspace.

  Source

• 2006

  Bankruptcy filingOther

  Background

  The company's operational setbacks coincided with reported debts of approximately €1 million and the seizure of funds from two bank accounts by Finnish financial authorities.

  Action taken

  Söder Aviation filed for bankruptcy with the Helsinki District Court on April 4, 2006.

  Aftermath

  The court approved the commencement of bankruptcy proceedings on April 7, ending the airline's business.

  Reported debts. Approximately €1 million (Before the April 2006 bankruptcy filing)

  Source

• 2005

  Shift to an outsourced operating modelStrategy

  Background

  After the original Saab 2000 operation was suspended, the company sought to restart with capacity supplied by external operators.

  Action taken

  Söder Aviation resumed under a new corporate name and used an MD-82 wet-leased from Bulgarian Air Charter, operated by Aviapaslauga, alongside aircraft operated by Nextjet.

  Aftermath

  The company faced licence and charter-status problems, and scheduled flights ended in May 2005.

  Source

1. 1Söder Airlinesen.wikipedia.org