UK charter airline grounded

A spokesperson for the company told AccountancyAge.com: 'British World Airlines went into receivership at 12:30pm today.'

The company said no administrator had yet been appointed and would not comment on the cause of the airline's collapse, although reports in the media suggest financial problems at the company had worsened following the 11 September attacks in America.

According to news website Ananova.com, 320 employees are set to loose their jobs.

BWA, based in Southend airport in Essex, operated a fleet of 10 leased jet and turboprop aircraft and provided aircraft to, among others, British Airways, and low-cost airlines EasyJet and Go.

All the aircraft were returned to their bases after completing their journeys and no passengers are believed to have been stranded as a result of BWA's collapse.

So far this year Belgian airline Sabena, Australian carrier Ansett and Canada's second biggest airline, Canada 3000 have have all collapsed due to mounting debts and the after effects of 11 September.

Links

Why the airline industry is like the weather

Air travel in transition in turbulent new world

Belgian airline files for bankruptcy

Andersen sells Ansett for Pounds 1.27bn