Danish no-frills airline Cimber Sterling said on Thursday it has declared bankruptcy after its owners pulled financial support from the company.

"Because of this the board of directors has decided to declare the company bankrupt," Cimber Sterling said in a statement.

Cimber Sterling was hit by fierce competition between low-cost carriers and rising costs when it expanded beyond its home Scandinavian region.

"The board of directors and the management team have worked intensely to ensure a turnaround of the company for several months but unfortunately we did not succeed before we ran out of time," Chief Executive Jan Palmer said in the statement.

A court will appoint one or more administrators for the bankrupt airline, Cimber Sterling said, adding that it would work with them to try to preserve as much of the operations as possible under a reconstructed company.

But Cimber Sterling said passengers tickets were "worthless" and the airline's website said all flights were cancelled.

"It is the expectation that a plan can be drafted within the next three days concerning the future of the company activities," Cimber Sterling said.

The Danish budget airline Cimber Sterling began regular service of the Sofia-Copenhagen line in March 2010.

The Sofia-Copenhagen flights were conducted on Thursdays and Sundays. This was the only route that the company serviced.

In the middle of October Cimber Sterling, together with Swiss International Air Lines and Pegasus, excluded Bulgaria's capital Sofia from their destinations for the winter season.

Swiss International Air Lines used to carry out daily flights between Sofia and Zurich, while Danish Cimber Sterling used to execute two flights weekly.

Turkish airline carrier Pegasus also used to fly twice each week between Sofia and Turkey's second largest airport of Izmir.

It was not immediately clear whether the three companies' regular flights would be halted only for the winter season or for a longer period.

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