Spanair collapse won't be investigated

Wednesday, 01 February 2012 10:41

Written by Editor

The Catalan government does not feel responsible for the collapse of the Catalonia-based airline, Spanair, a regional government spokesman said on Tuesday. Lluis Recoder told reporters the regional government had no intention of opening an investigation into the company's financial collapse, saying that was for a judge to decide.

However, he said the regional government was trying to relocate as many of the airline's 2,000 workers as possible with other companies in the same sector. Another estimated 2,000 workers in related sectors have also lost their jobs.

Spain's fourth-largest airline's abrupt decision to stop operations last Friday left thousands of passengers scrambling to find alternative flight arrangements – and having to pay out of their own pockets into the bargain. A spokesman for the airline said on Friday that it did not know exactly how many air passengers were affected but was confident the IATA would pay for the tickets.

Public Works Minister Ana Pastor has warned company executives that they face fines of up to €9 million for violating the nation's aviation rules by suddenly shutting down. Pastor was only informed of the decision two hours before Spanair grounded more than 200 flights.

Sources at the CGT union said Spanair employees were warned of their fate by email and some workers were prevented from entering the airline's facilities after the announcement was made Friday afternoon.

Some 22,770 passengers were left stranded over weekend and as many as possible were put on alternative flights operated by Vueling, Air Europa, Lufthansa and Iberia. Spanair had built up a debt of over €300 million, including various loans from the regional government, its main shareholder, which is also facing a financial crunch. The collapse came after Qatar Airways withdrew from takeover talks, ending any hopes of further financing. The airline was once owned by Scandinavia's SAS Airlines, which still has an 11% stake in the firm. It was bought out by the former regional government in 2008.
Workers now fear there is not enough money in the coffers to cover what they are owed. When they met chairman Ferran Soriano on Monday and asked if that was the case, he replied: “I can't say for sure." However, under bankruptcy proceedings, receivers normally give priority to unpaid wages among creditors, but the process can take months and even years.

The airlines most likely to benefit from Spanair's demise are Ryanair and Vueling.