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Spanish airline Spanair runs out of funds, to cease operating

By The Associated Press  | January 27, 2012
File - In this Aug. 21, 2008 file photo a Spanair jet takes off from Barajas airport in Madrid. The regional government of northeastern Catalonia said Friday Jan. 29, 2012 it can no longer supply struggling airline Spanair with funds to continue operating.Spanair has a fleet of 36 mainly aging aircraft and flies to 19 domestic and 24 international destinations which include Algiers in Algeria and Warsaw in Poland.Spanair's website ceased operating just before 9 p.m. (20.00 GMT) Friday. (AP Photo/I. Lopez, File)
File - In this Aug. 21, 2008 file photo a Spanair jet takes off from Barajas airport in Madrid. The regional government of northeastern Catalonia said Friday Jan. 29, 2012 it can no longer supply struggling airline Spanair with funds to continue operating.Spanair has a fleet of 36 mainly aging aircraft and flies to 19 domestic and 24 international destinations which include Algiers in Algeria and Warsaw in Poland.Spanair's website ceased operating just before 9 p.m. (20.00 GMT) Friday. (AP Photo/I. Lopez, File)

MADRID - Officials in Spain say struggling airline Spanair will cease operations because a regional government can no longer supply it with funds.

Spanair's financial woes were exacerbated by a 2008 crash that killed 154 people. Eighteen people survived what was Spain's worst aviation disaster in 25 years.

The regional government of northeastern Catalonia says it can no longer supply Spanair with funds.

The Ministry of Development also published a statement requiring Spanair to "fulfil its obligations with passengers" adding it was co-ordinating "alternative transport."

The Catalan government said the "current economic climate" and "European legislation concerning competition" made it impossible for it to continue financing the small carrier whose hub is Barcelona airport.

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