Financial troubles ground Spanish airline Air Comet

The airline said it has requested the Spanish government’s permission to sack all its employees, numbering about 700.

Air Comet – which specializes in operating scheduled, long-haul services from Madrid to destinations in Central America and South America – said in a statement that the immediate reason for its financial problems was a decision taken by a commercial court in London which enabled Nord Bank, of Germany, to commence a foreclosure procedure against the carrier.

The London court also restrained Air Comet from using any of its aircraft and ordered the airline not to sell tickets.

With a fleet of 13 aircraft, Air Comet flew around 1,500 passengers daily on flights from Madrid to the South American cities of Buenos Aires (Argentina), Lima (Peru), Bogota (Colombia), Quito and Guayaquil (Ecuador), and Havana (Cuba).

Concha Gutierrez, Junior Transport Minister of Spain, told reporters that the government of Spain had withdrawn Air Comet’s flying licence in order to prevent the airline’s financial problems turning into “security troubles.”

Air Comet – which is owned by Grupo Marsans, the Spanish-based tourism and transportation company – owes 17 million euros ($24 million) in lease payments to Nord Bank, of Germany, in addition to around 7 million euros in back wages to its employees.

The company had agreed to pay unpaid wages, after workers resorted to partial strikes in the beginning of December 2009.

Meanwhile, the government of Ecuador has decided to file an appeal against Air Comet for alleged fraud, according to Ecuador’s Ministry of Migration.

Alexis Rivas, Ecuador’s acting Minister for Migration, told a news conference that the government will accuse Air Comet as well as Germanico Maya, the airline’s legal representative in Ecuador, of alleged fraud. The Minister added that “clearly there were dishonesty and irresponsibility” in the operations of Air Comet, which caused damages to the passengers who had bought its tickets.

Rivas told the news conference that the government of Ecuador had evidence to prove that Air Comet conducted “a series of irregular operations” and that the carrier continued to offer services in spite of its financial troubles.

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Air Comet, based in Madrid, Spain, has suspended all its flights owing to financial difficulties and has filed for bankruptcy protection.

The airline said it has requested the Spanish government’s permission to sack all its employees, numbering about 700.

Air Comet – which specializes in operating scheduled, long-haul services from Madrid to destinations in Central America and South America – said in a statement that the immediate reason for its financial problems was a decision taken by a commercial court in London which enabled Nord Bank, of Germany, to commence a foreclosure procedure against the carrier.

The London court also restrained Air Comet from using any of its aircraft and ordered the airline not to sell tickets.

With a fleet of 13 aircraft, Air Comet flew around 1,500 passengers daily on flights from Madrid to the South American cities of Buenos Aires (Argentina), Lima (Peru), Bogota (Colombia), Quito and Guayaquil (Ecuador), and Havana (Cuba).

Concha Gutierrez, Junior Transport Minister of Spain, told reporters that the government of Spain had withdrawn Air Comet’s flying licence in order to prevent the airline’s financial problems turning into “security troubles.”

Air Comet – which is owned by Grupo Marsans, the Spanish-based tourism and transportation company – owes 17 million euros ($24 million) in lease payments to Nord Bank, of Germany, in addition to around 7 million euros in back wages to its employees.

The company had agreed to pay unpaid wages, after workers resorted to partial strikes in the beginning of December 2009.

Meanwhile, the government of Ecuador has decided to file an appeal against Air Comet for alleged fraud, according to Ecuador’s Ministry of Migration.

Alexis Rivas, Ecuador’s acting Minister for Migration, told a news conference that the government will accuse Air Comet as well as Germanico Maya, the airline’s legal representative in Ecuador, of alleged fraud. The Minister added that “clearly there were dishonesty and irresponsibility” in the operations of Air Comet, which caused damages to the passengers who had bought its tickets.

Rivas told the news conference that the government of Ecuador had evidence to prove that Air Comet conducted “a series of irregular operations” and that the carrier continued to offer services in spite of its financial troubles.