The news broke this week that Spanair, Spain’s fourth largest airline, has collapsed. All flights were cancelled and up to 20,000 passengers were left stranded abroad.

It was no secret the airline was struggling. After being subsidised by local government for the past year, their funded by stopped last Friday. The collapse of the airline is due to cause the loss of up to 4,000 jobs. With Spain already having comfortably the largest unemployment figures in Western Europe, the news was another blow to a nation already knee deep in the Eurozone crisis.

Compensation after the collapse of Spainair

The airline made a statement, in which it confirmed the collapse and “apologies to all those who are affected by this situation.” Those who are stranded have had to seek alternatives flights, with the assistance of the Civil Aviation Authority. Many are also seeking to make a compensation claim for their unused flights following the collapse.

Consumers who have upcoming flights booked with Spanair, have been told that there is a possibility to claim back the money paid. If the purchase was made by credit card, and the cost of the transaction was for more than £100, the consumer’s credit card company should refund the money, due to the airlines breach of contract.

Spanair is one of a long line of airlines and tour operators who have struggled following the recession. The Eurozone crisis of the past 12 months has only increased the pressure on many European based airlines.

There are however some success stories. Both Ryanair and Easyjet are monitoring the situation, and may look to fill the void in the region.