Demise
By the mid-1980s, competition in the charter airline market in Europe was intense, and in conjunction with spiralling fuel prices, the fortunes of the airline took a turn. Having an outdated fleet, the company was forced to lease in 737s from SABENA, and two Boeing 747s and a DC-10 from Malaysian Airline System.
In 1987, plagued by financial troubles and labour strikes, Spantax was sold to the Aviation Finance Group, based in Luxembourg. The new owners had committed capital of 3 billion pesetas, and an investment of 4 billion pesetas. Debts to the Spanish authorities totallying 13 billion pesetas were reorganised for payment over a twenty five year period, and a fleet renewal program would have seen the airline operating fifteen aircraft by 1993. Attempts to revamp and refinance the airline, renew its fleet with McDonnell Douglas MD-83s, and negotiate with China Airlines for acquisition of Boeing 767s were all unsuccessful. After the Kuwait Investment Authority withdrew from a planned offer to purchase the airline, Spantax ceased all operations on 29 March 1988, leaving some 7,000 passengers around Europe stranded.
Read more about this topic: Spantax