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Spain's government has launched legal action against Spanair after it abruptly ceased operations on Friday, cancelling 220 flights and stranding 22,000 passengers.

The government claims the airline has violated Spain's aviation regulations and legal proceedings could lead to Spanair being fined €9m (£7.5m) for two 'serious infringements'.

Development Minister Ana Pastor confirmed the action after the airline, which is owned by a consortium based in the northeastern region of Catalonia, shut down its operations due to a lack of funding.

The decision to close came after the regional government, which holds a controlling stake in Spanair, announced it could no longer fund the airline, officials said.

The Catalan government cited the 'current economic climate' and 'European legislation concerning competition' as the major factors influencing its decision.

A potential rescue plan for Spanair fell apart last week when Qatar Airways pulled out of talks to buy a stake in the airline, according to the Catalan regional government.

Spanair, also partly owned by Scandinavian airline SAS, had been looking for a new investor since November and Qatar Airways was reportedly interested.

In Brussels, the European Low Fares Airline Association said any of its members - which include Ryanair and EasyJet - that fly overlapping routes with Spanair would offer specially discounted fares to stranded passenger, subject to seat availability.

Spanair, whose hub was Barcelona airport, employed around 2,000 people and used the services of about 1,200 ground staff.

The airline had struggled for some years to compete with the rising number of low-cost carriers operating in the country.

In 2010 the company reported an operating loss of €115m (£96m) and had survived thanks to finance provided by the Catalan government and some private investors.

Spanair's financial woes were exacerbated by a 2008 crash that killed 154 people. Eighteen people survived what was Spain's worst aviation disaster in 25 years.

The Spanair Flight JK5022, which was bound for the Canary Islands, crashed on takeoff as it tried to leave Madrid airport.

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