Scottish airline Flyglobespan has collapsed, stranding thousands passengers, after its Edinburgh-based parent company The Globespan Group went into administration on Wednesday, according to media reports.
Flyglobespan canceled all flights on Wednesday night after administrators PricewaterhouseCoopers (PWC) said that The Globespan Group had failed to secure the extra funds it has been seeking.
Approximately 5,000 passengers were booked to travel with Flyglobespan over the coming days, according to The Press Association.
The UK Department of Transport and Civil Aviation Authority are now reported to be working with low-cost airlines to bring stranded passengers home at a minimal cost.
It is likely that customers who booked flights using a credit card or through a tour operator affiliated with the Air Travel Organisers' Licensing (Atol) scheme will receive a refund, but customers who booked directly with Flyglobespan using a debit card will probably not be protected.
The airline flew from Edinburgh, Glasgow and Aberdeen and operated transatlantic flights from additional UK hubs, including Manchester, London Gatwick and Belfast.