MADRID: Spanish airline Air Comet has said it has suspended all its flights because of financial difficulties that are preventing it from paying its debts, ruining holiday travel plans for thousands of passengers.

The airline, which specialises in flights to Latin America, attributed its problems to a decision last Friday by a commercial court in London that enabled Nord Bank of Germany to undertake a foreclosure procedure against the airline.

The company said it had filed for bankruptcy and had requested government permission to dismiss all of its nearly 700 employees. It has a fleet of 13 planes and carries 1,500 passengers a day on flights from Madrid to Bogota, Buenos Aires, Havana, Lima, Quito and Guayaquil in South America.

Hundreds of stranded passengers were gathered outside the closed ticket office of Air Comet at Madrid's Barajas airport, one of Europe's busiest airports. "Thieves, give us back our money!" chanted several of the affected passengers as they banged metallic objects against the trolleys holding their luggage.

Earlier on Tuesday, dozens of passengers blocked the entrance of cars to the airport's Terminal 1 in protest, one day after hundreds of flights at the airport were cancelled because of poor visibility caused by a snow storm.

Development Minister Jose Blanco said alternative travel plans would be arranged for passengers affected. The government had withdrawn Air Comet's flying licence to prevent the company's financial difficulties from becoming "security troubles," said junior transport minister Concha Gutierrez.

Air Comet, owned by Spanish tourism and transportation company Grupo Marsans, owes $24 million in lease payments to Nord Bank as well as some 7.0 million euros in back pay to its workers.