ASH CLOUD

City Airline Cancels Expansion Plans

City Airline based in the south-west of Sweden says it has had to shelve expansion plans for ten new routes from Gothenburg's Landvetter airport later this year because of the suspension of flights due to the volcanic ash cloud.

In February, City Airline, based in Gothenburg, launched the routes linking Landvetter to ten dometsic airports in Sweden.

In a company statement on Wednesday, City Airline said that it would not expand for the time being.

" The situation with the volcanic eruption on Iceland and the subsequent suspension of air traffic is without precedent in history, and the industry has been hit exceptionally hard. Fortunately, we were able to apply the brakes now, before City Airline had the chance to carry out its heaviest investments in preparation for the planned autumn launch, said Lars Magnusson, the founder of the company who also announced that he would be selling it to four membrs of his management team.

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