Loss-making Spanair ceases operations

Loss-making Spanish airline Spanair ceased operations last month, grounding all its aircraft after its owner, citing the country’s economic crisis, said it would not sink any more money into the company.


Loss-making Spanair ceases operations


Loss-making Spanish airline Spanair ceased operations last month, grounding all its aircraft after its owner, citing the country’s economic crisis, said it would not sink any more money into the company.

Earlier in the day a potential rescue plan for Spanair fell apart when Qatar Airways pulled out of talks to buy a stake in the airline, according to a Reuters report citing the Catalan regional government. “It’s impossible for the Catalan government to provide new capital, that is what we have communicated to the company,” the Catalan government said in a news release, citing the economic downturn that has hit Spain, as well as the failed talks with Qatar Airways.

The Catalan government holds a controlling stake in Spanair along with private investors through the IEASA holding. Spanair, is also partly owned by Scandinavian airline SAS. The airline flies in Spain and elsewhere in Europe.