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Dublin: 10 °C Monday 20 May, 2013

Thousands left stranded after Spanish airline collapses

An estimated 22,000 passengers were left in the lurch when Spanair announced a sudden shutdown on Friday.

Passengers wait at a Spanair desk at Barcelona airport yesterday
Passengers wait at a Spanair desk at Barcelona airport yesterday
Image: Manu Fernandez/AP/Press Association Images

SPANISH AIRLINE SPANAIR has ceased its operations without warning, leaving an estimated 22,000 passengers in the lurch after they booked seats on flights this weekend that now will not operate.

Spain’s government has launched legal action against the now-defunct airline Spanair for allegedly violating the country’s aviation regulations by suddenly ceasing operations, a minister said yesterday.

Around 500 people were due to fly into Dublin on Spanair flights this weekend, RTÉ reports.

Passengers who had booked seats on more than 220 cancelled flights have been left looking for alternative arrangements and instructions on how to seek reimbursements. Spanair, owned by a consortium based in the northeastern region of Catalonia, shut down its operations late on Friday because of a lack of funding.

The legal proceedings begun by Spain’s government could lead to Spanair being fined €9 million for two “serious infringements” of aviation security legislation, Development Minister Ana Pastor said. The alleged infractions related to obligations linked to continued service and passenger protection.

Chairman Ferran Soriano said the airline had failed to attract inward investment and consequently the regional government of northeastern Catalonia took the decision to stop providing funds. Spanair, whose hub was Barcelona airport, employed around 2,000 people and used the services of about 1,200 ground staff.

Spanair’s financial woes were exacerbated by a 2008 crash that killed 154 people. Eighteen people survived what was Spain’s worst aviation disaster in 25 years. The airline, which also ran a commuter service between Madrid and Barcelona, was in trouble financially before Spanair Flight JK5022 – an MD-82 jet – crashed on takeoff on August 20, 2008 as it tried to leave Madrid bound for the Canary Islands.

In 2010 Spanair, which was Spain’s No 4 airline, reported an operating loss of €115 million and had survived thanks to finance provided by the Catalan government and some private investors.

The Catalan government cited the “current economic climate” and “European legislation concerning competition” as the major factors influencing its decision.

In Brussels, the European Low Fares Airline Association said those of its members flying overlapping routes with Spanair would offer specially discounted fares to enable stranded passengers to return home. Offers are subject to seat availability, said the organisation of budget airlines – which includes Ryanair.

The association’s secretary-general, John Hanlon, said in a statement the aim was to assist Spanair passengers who were experiencing difficulties with travel plans. National carrier Iberia Spanish Airlines SA said it had also offered to help.

- Additional reporting by Michael Freeman

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Comments (13 Comments)

  • What’s the point of fining a company €9 million Euro for closing suddenly due to a lack of money?

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  • Right up Ryanair’s alley.. 22,000 stranded passengers willing to pay any amount of money to get to their destination. “come on down” folks, have ye’re credit cards to the fore and ready to take a pounding….

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    • Ryanair are offering discounted fares.

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    • Ryanair always have discounted fares (unless some sports game is on)… it’s the extra charges that’ll get you!

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    • In value and number most of those extra charges are determined by governments and airports. Airline/Flight Tax (not on ferries or trains btw), airport charges, security charges, EU law that demands (unlike ferries and trains) that delays are compensated by airlines, credit card fees, carbon tax. The air fare is generally the cheapest part of a Ryanair flight. This morning Michael O’Leary said that Ryanair would add new routes to replace those ended by Spainair. He spent the weekend at it. What were Aer Lingus doing? Maybe they were in Doheny & Nesbits boozing!

      Reply
  • One of the nicest airlines I have flown with. Always used them on my trips over to the south of Spain. Real shame that they have gone.
    Real shame they are gone and very disappointed at the way they have gone out.

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  • That’s certainly a spanair in the works ;)

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  • I must say if I was one of the stranded passengers I’d be delighted to take a flight with Ryanair or any other that I could get on, especially if a concession was made on the price; at the end of a holiday finances are usually not in the best position!!

    But as to the bigger picture,
    “The Catalan government cited the “current economic climate” and “European legislation concerning competition” as the major factors influencing its decision.”

    Is this double speak for no more subsidies under austerity rules; after all it sounds like it has been subsidised for years – not that I necessarily agree with that either – but do we need to take heed here and take this as a signal of what could happen here if we don’t start to stand up for ourselves?
    Don’t forget that we are in the same PIIGS group. (I hate that PIIGS accronym – GIPSI?) anyway it’s time for the countries within that group and the new ones that have been downgraded recently, and those on the periphery of downgrade status, to band together – more unison, more negotiation strength against the “big” countries of Europe who seem intent on continuing to punish us all, despite that fact that it’s obvious that that policy is doing nothing but making a bad situation worse for the ordinary citizens of all Europe.

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  • To Wm Grogan. Ryanair are always offering “discount fares”. That term means nothing to them.

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  • Spanair was meant to be the Catalan national carrier but that went against the centralist idea from the Spanish government who in turn has the main objective to sink any project that identifies Catalonia as a normal country. Next step: to try to merge the savings bank “la Caixa” with Bankia and transfer the headquarters to Madrid. There are also 22bn in taxes collected annually in Catalonia that never come back.
    What’s the result of this? Lastest poll showing a 53% that would vote “Yes” in an independence referendum. If you are Catalan and you do not support independence there are two options only: you are a sadomasochist or you are an idiot. Apart from that there is the useless Catalan political class which sometimes it seems to be a copy of the Irish one with the only difference that in Ireland they decide the future of the country and in Catalonia they don’t decide anything because they are powerless when it comes to important matters.
    To put it simple this is as if Real Madrid was managing FC Barcelona. Who do you think would win more/all competitions?

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  • had my flights booked with them to fly to spain in three weeks ffs!!!!!!

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  • Spanair must be run by a bunch of spanners to close down that way and leave 22000 stranded!

    Ryanair to the rescue!

    Reply

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