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Air Madrid's main business is reasonably priced flights between Spain and Latin America, though it also has routes landing in the Canary Islands. Its first big mistake seems to have been overambition, attempting to operate too many routes with too few resources, particularly aeroplanes of its own, supplemented by leases. Recently Air Madrid's spokespeople excused the delays on the grounds that "all the available aircraft have been hired by Arabs making the pilgrimage to Mecca." Its other big mistake may have been the evident cynicism of its public relations, especially when answering both complaints from users and official investigators.
The Ministry has said that passengers' tickets will be valid until the suspension comes into effect, which will happen on Saturday unless the company is able to present convincing counterarguments before that time. After that, they may "demand their money back or that they be given an alternative flight."
Air Madrid is owned by José Luis Carrillo, a self-made businessman in the rags-to-riches tradition whose wealth lies in the tourism and construction sectors. Ironically, it had been announced at the end of November that Air Madrid would go public next year.
