Spanair ceases operations

By Karen Walker | January 27, 2012

Spanair A320. Courtesy, Spanair

Barcelona-based Spanair (JK) has ceased operations after reportedly running out of financing options.

A statement on the carrier’s website says it suspended operations on Jan. 28 and advises customers with reservations to contact their credit card company, insurance company or travel agency. “Due to these exceptional circumstances all our flights are canceled,” the statement said.

JK reportedly made the decision to halt operations after being told it would receive no more government-backed loans and talks with Qatar Airways (QR) about potentially taking a stake in Spanair fell through (ATW Daily News, Nov. 18, 2011).

Bloomberg reported that a JK spokesman said Qatar (QR) was not interested any more in a business deal.

SAS Group, meanwhile, issued a statement saying that JK’s board of directors had decided to apply for bankruptcy. SAS divested most of its ownership in Spanair in early 2009, but said Friday it had a remaining exposure of about 1.8 billion Swedish krona.

“SAS Group will follow customary procedures as a creditor in the upcoming bankruptcy process,” it said.

JK, a Star Alliance carrier, issued a statement almost exactly a year ago warning that it was in an emergency financial situation.

Discuss this news 9

27 Jan22:30

THE SO CALLED LARGEST

By Anonymous

THE SO CALLED LARGEST ALLIANCE IS BECOMING SMALLER AS AIRLINES SUCH AS ANSETT AUSTRALIA AND VARIG SEIZED OPERATIONS IN PRIOR YEARS..BMI IS NO LONGER PART OF IT AND TAM WILL SOON BE ANOTHER VOID

30 Jan03:27

I can’t believe that most of

By Guido

I can’t believe that most of the alliances’ carriers are vanishing nowadays, wasn’t the target of any carrier that took a decision of joining an alliance to maximize its revenues. It seems that the carriers away from alliances are in a better position.
Is it the fact that Star Alliance mainly is destroying all its members one by one for the sake of the major carriers in the alliance, in the last couple of months TAM, followed by bmi, and recently Spanair! The Biggest Alliance should clarify the reasons beyond this.

30 Jan03:28

In the US it could have used

By ruud

In the US it could have used Chapter 11, like AA. In Europe the situation is more harsh: ealier shake out.
Why does'nt Star Alliance take over the stranded passengers? Booking at a member of an alliance apparantly does not help.

30 Jan04:47

waiting to see what's

By MarcoPolo

waiting to see what's happening with AF soon...

30 Jan05:18

Ansett and Varig: Old

By Anonymous

Ansett and Varig: Old stories. TAM and LAN not decided yet. By the way, also other alliances have lost members over time. Oneworld: Canadian has been integrated into AC and Aer Lingus left on own initiative. Skyteam has lost Continental and Copa to Star. And let´s face it, many members of Oneworld and Skyteam have been/are close to bankruptcy: AA, AY, JL, MA, OK and AZ. Aviation is very changing industry. Was like this and will always be. Fact is that Star Alliance is the largest alliance with regards to all characteristics, like fleet, passenger figures, destinations, turnover, etc. And when I take a look to airlines joining an alliance soon, Star will stay the biggest player in the near/medium term future.

30 Jan06:50

No need to be so cheerful

By Anonymous

No need to be so cheerful about it !

30 Jan12:18

It's not a matter of being

By Kapo

It's not a matter of being cheerful, but this airline has been on it's last legs for quite a while and in recent times has only been operating by means of funds from the Catalan Regional government. That they could not survive even with handouts proves that the carrier was structurally unsustainable and competing unfairly. Fortunately, many of the staff will have options elsewhere, with the growth in the Spanish market of Vueling, Ryanair expanding and eventual launch of IB Express.

In regards to the Alliances, it seems that they're in a bragging rights race to increase their members without regard to quality or even the financial state of new members. An alliance cannot save an unsustainable structure.

Previous anonymous post citing "TAM and LAN not decided yet".
LATAM is forbidden from joining Star as one of the conditions of the merger from the Chilean Anti-trust regulator.

30 Jan14:51

If the SAS exposure is of 1.8

By Anonymous

If the SAS exposure is of 1.8 BILLION SKr, SAS is dead!
It's probably only 1.8 million Skr.

30 Jan17:14

"If" You want to be taken

By Anonymous

"If" You want to be taken seriously YOU may want to State FACT......"ceased operations in recent years" aka Ansett,VARIG. NOT siezed! BMI was bound to be spun off from Lufthansa, I feel they just hoped Virgin would have been interested in making a deal. Outside of the Spanish market, Spanair offered little to STAR.