All flights were cancelled after its parent company, Globespan, entered into bankruptcy on Wednesday.
About 800 employees have lost their job and about 4,500 passengers were stranded by the airline's collapse, mostly in Spain, Portugal, Cyprus and Egypt.
Flyglobespan (a trading name for Globespan Airways Limited) was established in November 2002 as an offshoot of the Globespan Group. Operations started in April 2003 using two Boeing 737-300 aircraft provided by Channel Express on services from Glasgow Prestwick Airport and Edinburgh Airport to five destinations in Spain, France and Italy.
Globespan, an Edinburgh-based tour operator with over 30 years experience, already offered scheduled and charter flights, cruise travel, rail and coach travel, motor home and car rental, and hotel accommodation tailored for holidaymakers visiting destinations in Canada, the USA and Spain. The scheduled flights, mainly to Canada, were operated by Air Transat from airports throughout the UK, with Globespan acting as the booking agent and selling the flights under its own brand. In summer 2002, a similar arrangement was trialled between Edinburgh and Nice, in the south of France. This was to prove successful for Globespan, and led to the creation of its own no-frills brand, Flyglobespan.
Services began in 2003 with aircraft and crews provided by Channel Express, though under the Flyglobespan brand with red and white livery, offering irregular flights to European holiday destinations. The offshoot proved successful and flight frequencies were increased. At this point, the operator relocated from Prestwick to the larger Glasgow International Airport, which is much closer to the population centres of Central Scotland, within months of commencing operation. In 2004 so it could operate its own aircraft, the Globespan Group bought the defunct airline operator Cougar Leasing along with its CAA Aircraft Operating Certificate. Now with its own Operating Licence, expansion was swift for the new airline. New destinations were added to the network, including Prague, where the airline faced competition from Czech Airlines, and further points in Spain, including the Canary Islands. CSA withdrew their Glasgow to Prague service on 1 August 2005.
By March 2005 the airline had grown to offer 15 destinations across Europe, with a fleet of 9 aircraft, of which 3 were bought new, and had tripled its passenger numbers to 1.5 million annually. Profits for the year ending October 2004 had risen from £2m in its first year to £3.7m, on a turnover of £98m.
In May 2005, the first domestic services were launched, with twice-daily flights from Glasgow and Edinburgh to London Stansted - routes that were already operated by the much larger low fares carrier easyJet, with much higher frequencies. However, these services were withdrawn in February 2006, together with plans to serve Bournemouth from Edinburgh.
