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Air Madrid In Danger of Losing Operating License

December 15, 2006 By: Jennifer Merritt Travel Agent

Following threats to suspend Air Madrid's operating license from Spain's government due to continuous departure delays, the low-cost carrier on Friday cancelled flights, stranding thousands of passengers. According to Reuters report, Air Madrid said ticket sales had fallen dramatically since the government's statement issued last Tuesday. "Air Madrid has decided to suspend its activities from today [Friday]," the airline said in a statement. "The development ministry has managed to completely destroy Air Madrid's commercial image and has placed our company in a very serious crisis which prevents us from carrying on our work." The carrier has rejected the government's accusations, saying it is working to improve service in several different ways, including reducing the number of flights. In November, passengers of an Air Madrid flight from Madrid to Buenos Aires were held up with a one-day delay.

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