Collapse of Spanair leaves 20,000 passengers stranded
January 31st, 2012 by elisa

Over 20,000 passengers have been left stranded after Barcelona-based airline, Spanair cancelled 647 flights due to financing problems.

Options are being offered by UK based low cost airlines, Easyjet and Ryanair to passengers hit by the cancellations. Spanair also said it was working with Vueling, Iberia and Air Europa to find alternatives for passengers.

The airline made the decision to cancel flights when applications for government-backed loans fell through and talks with Qatar Airways about taking a stake in the company ceased.

The airline said it was finalizing an agreement with IATA to get refunds for those with tickets that had yet to travel; and a statement on its website advised customers with reservations to contact their credit card company, insurance company or travel agency.

The Spanish government says it is taking legal action against the airline for suspending its flights without proper warning, a case which could result in a 9million euro fine.

Spanair was the country’s fourth largest airline, and this situation has led to suggestions that Europe’s debt crisis may spark airlines from the Mediterranean to the Baltic to consider mergers or risk failure.


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