Financial turbulence hits Spanish carrier

Spanish airline Air Comet said it had suspended all its flights because of financial difficulties that are preventing it from paying its debts, ruining holiday plans for thousands of passengers.

The airline, which specialises in flights to Latin America, attributed its problems to a decision on Friday by a commercial court in London that enabled Nord Bank of Germany to undertake a foreclosure procedure against the airline.

The company said it had filed for bankruptcy and had requested government permission to dismiss all of its nearly 700 employees. It has a fleet of 13 aircraft and carries 1,500 passengers a day on flights from Madrid to Bogota, Buenos Aires, Havana, Lima, Quito and Guayaquil in South America.

Hundreds of stranded passengers were gathered outside the closed ticket office of Air Comet at Madrid's Barajas airport, one of Europe's busiest airports. "Thieves, give us back our money!" chanted several of the passengers as they banged metallic objects against the trolleys holding their luggage.

Development Minister Jose Blanco said alternative travel plans would be arranged for passengers affected. The government had withdrawn Air Comet's flying licence to prevent the firm's difficulties from becoming "security troubles," said Junior Transport Minister Concha Gutierrez.

Owned by Spanish tourism and transportation firm Grupo Marsans Air Comet, owes €17 million (Dh89bn) in lease payments to Nord Bank as well as some €7m in back pay to its workers.

 

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