Airline investigated over poor finances

Swedish airline Falcon Air is be be investigated by the Swedish Civil Aviation Authority, following a meeting on Wednesday to discuss the poor shape of the company's finances.

Contrary to earlier news agency reports, the airline’s license has not been revoked.

“Our current view is that it can carry out its operations with an acceptable level of flight safety. But we are following the case and continuing our investigations,” said Anders Lundblad, spokesman for the Swedish Civil Aviation Authority, to news agency TT.

Falcon Air decided on Monday to cancel all its flights. The airline operates three leased Boeing 737-300 aircraft, and flies scheduled services to the Middle East, North Africa and Europe, and postal services within Sweden. It also operates a number of charter routes.

“If new capital is not injected, the company will go bankrupt,” said Falcon Air’s head of operations, Clas Helgstrand, to Sydsvenskan.

The company is based at Malmö-Sturup airport. The loss of its license means that none of the airline’s planes are allowed to take off. Falcon Air employs a staff of 90, of which 70 are based at Malmö-Sturup.