I travel to Spain 1-3 times a year for holiday. When I was in the UK a couple of weeks ago the news reported the unemployment rate in Spain is 22%; among the under 25, the unemployment rate is close to 50%. Each time I go (three times in 2011), more stores in Torremolinos and Malaga are closed. When the Spanish tourists come to Torremolinos they are tending to come for less days and spend less money.

So, a leisure airline like Spanair without the capital of say, Iberia, poorly run or not would have a rough time. I was shocked on one trip that the middle seats in business class were also sold and occupied. Other than a bit better meal, I could not figure why anyone would buy for business class on the short flights. The BOB product was unexciting and expensive. I brought drinks from the lounge and bought a sandwich in the airport.

Many of their non-stop flights were only one or two per day so clearly not aimed at the business traveler.

But still, they had great one-way prices and their service were several steps above Ryanair. I hope maybe one of *A carriers will expand within Spain. I know LH depended on on Spanair for a number of connections.

Doubtful that LH would waste money on a LH Espana. The economy in Spain is very poor. Looking at the Spanair site, some of their former routes IIRC included Philadelphia, New York, and London.

USAir also code-shared with Spanair althought UA and CO did not. I wonder how the demise will affect US seasonal BCN service.