Feliz Navidad - And Adiós

Privately-owned, low-cost Spanish carrier Air Madrid had its flying license suspended Saturday by Spain's Civil Aviation authority, just hours following the troubled carrier's announcement it was ceasing operations.

Some 120,000 people are stranded in Spain and abroad, according to company Secretary Pascual Perez Ocana, having flown only one leg of their return tickets. Spanish National Radio says that 300,000 people have flights booked with the two-year old airline.

Air Madrid has been unable to resolve problems causing repeated flight delays according to the Spanish government. Additionally, the agency overseeing aviation in the country says the airline has a number of unresolved security issues. The airline's continuing problems have devastated both the carrier's ticket sales and its credibility.

According to a Civil Aviation statement, "This decision has been taken with total independence of the absolutely irresponsible and unilateral behavior of the company."

The company's announced it was ceasing all flights on Friday, blaming its decision on the government. It didn't address whether it was going out of business or when it might resume flying.

In a statement Air Madrid said it was giving a list of ticket-holders to the Civil Aviation authority for it to "adopt whatever measures it might deem appropriate to compensate them for the damage its conduct has caused."

Air Madrid also said that ticket sales had fallen dramatically since a development ministry statement last Tuesday threatened the suspension following serious flight delays.

On Friday, Spain's Development Ministry said the government was chartering between four and six jumbo-sized planes to repatriate the neediest stranded passengers.

The government also said it would take legal action against the airline and claim back from Air Madrid $6.6 million in funding for the emergency flights.

Air Madrid was founded in 2004 and has 1,270 employees. In addition to Latin America, it had routes to London, Paris, Rome, Tel Aviv and the Balearic Islands in the Mediterranean.

FMI: www.airmadrid.com