Spanish airline Air Comet announced today that all its flights have been suspended owing due to financial problems due to which it is unable to pay its debts.  The airline has a fleet of 13 planes and around 1500 passengers use its services everyday.

The airline, which specializes in flights to Latin American countries, has said that the main reason behind its problems is the decision by a commercial court in London on Friday which allowed the German bank ‘Nord Bank’ to deny the airline the right to redeem the mortgage against its debt. It is reported that the debt amount was close to 20 million dollars or 14 million euro.

This has ruined travel plans for a large number of passengers, and that too at a time of the festive season and holidays. The airline is also gearing up for staff lay-offs and declaring its inability to clear off the debts.