The collapse of Spanair has left around 23,000 passengers stranded as Spain’s loss-making airline grounded its services following the withdrawal of state funding on Friday.
The Star Alliance member, Spain’s fourth largest airline, filed for bankruptcy protection blaming “a lack of financial visibility for the coming months” as last ditch efforts to win investment from Qatar Airways failed.
The airline’s damaged image in the wake of its 2008 crash which resulted in 154 deaths combined with tough competition and the Spanish financial crisis are also thought to have contributed to the airline’s demise.
Former major shareholder Scandinavian Airlines wrote down its remaining 10.9% share of the airline to 1.7 billion Swedish kronor, but remained confident the write-down’s effect on its business would be limited.
Meanwhile, the Spanish government has reportedly started legal proceedings against the airline prompted by the grounding which could see it fined around nine million Euros.
