The company´s nine aircraft have carried one million passengers in the last year

Air Madrid´s licence revoked by the Civil Aviation Authority

Aircraft. Subject to daily inspections since May

The airline´s closure will have repercussions on the island´s transport scene, with the loss of four weekly flights to the Spanish capital and three to Palma

Christine M. Watterson.Maó

With effect from 0200 hrs. on Saturday, Air Madrid´s fleet was grounded, with the exception of those aircraft in transit at the time which were allowed to complete their journey before the measure was applied to them. The move was the result of the Civil Aviation Authority revoking the airline´s licence to fly and air operator´s certifcate.

Passengers affected by the cancellation of all the company´s flights have either been found seats on alternative airlines or transported on one of six aircraft hired by the Ministry for Development to cover emergency cases for a period of six days following the announcement. Since Friday some 5,000 passengers have had to be relocated on other flights.

The cost of renting and operating the six "stand-bys" will be reclaimed from Air Madrid through the legal system and is estimated at 6.49 million euros; this sum including compensation payments and expenses such as the cost of providing a telephone service offering information to customers, the cost of relocating passengers on alternative flights and a press, radio and internet campaign. The airline is also expected to be fined up to 4 million euros.

A troubled history

Air Madrid Líneas Aéreas, S.A., was founded in December 2003 by a group of companies from the tourism sector and was bought out in 2004 by the businessman José Luis Carrillo through the company Optursa Management Ltd. which operates in the British market under the umbrella of the tour operator My Travel.

Based in Barajas airport, Air Madrid started operating in May 2004, with 12 weekly flights, as a long haul, low cost airline.

In April 2006, a survey commissioned by the Consumers´ Association and conducted on 8,600 passengers throughout Europe, showed Air Madrid to be the company with the worst record for flight delays.

Last Tuesday, the Civil Aviation Authority threatened to revoke the airline´s operating licence as a result of the company´s failure to adopt corrective measures detailed in a government plan handed to the company on 16th November.

The airline´s history of problems includes: a 22 hour delay on a Lima flight on 11th September; a riot by passengers at the airport on the 19th of the same month following which they were allowed to embark after an 11 hour wait; and on 25th more than 150 passengers were stuck on an aircraft. The problems continued the following month with a 31-hour delay on a flight to Quito, and a 60-hour delay on two flights to Argentina and Brazil on 27th.

Since then the airline´s flights have still been subject to delays, causing passengers to lodge complaints at the company´s desks on a daily basis.

According to the head of the Ministry for Development, Magdalena Álvarez, the airline has been under daily investigation since 26th May after safety defects were discovered in some of the fleet which resulted in five of the aircraft being grounded on seven occasions. However she emphasised that the aircraft which did fly were safe to do so, having been inspected daily by a team of specialists.

Air Madrid was operating with a total of nine Airbus aircraft, of varying sizes, which, between them, carried a million passengers during the last twelve months. The airline´s removal from the scene will leave a significant gap in the island´s communications, with the disappearance of four flights a week to Madrid and three to Palma.