Norwegian regional airline FlyViking AS will suspend operations this month, less than a year after taking to the air.

The airline, a wholly owned subsidiary of Viking Air Norway AS, plans to stop flying by 12 January, it stated, although it will then establish a new limited company that will be initially responsible for trying to maintain its Ørland-Oslo route.

A combination of “lacking financial results”, “major technical challenges” and issues regarding ticket bookings contributed to the decision. Chairman Ola Olsen stated it was “not economically viable to move on with the equipment we have today. Further, a controlled winding up within a reasonable time will allow us to suspend operations in FlyViking AS, while neither customers, suppliers, employees or hired personnel will be injured.”

The airline says it plans to continue with the Ørland-Oslo route using another regional airline, unnamed at this time, which will commercially work with the new company probably via a lease arrangement.

As late as December, FlyViking collected NOK 10 million in fresh capital in an issue that valued the company at NOK 150 million.

The airline has been using three Dash 8-100 aircraft on its routes in northern Norway out of its base at Tromsø Airport to Hammerfest and Bodø but has reportedly experienced more technical challenges than expected, which resulted in some flight cancellations.

The owners of the company will also now assess whether it is possible to create profitable air routes with other aircraft types, and in another segment. This work will start immediately, it said.