Flyglobespan, Scotland’s bigger private airline, has collapsed after failing to secure a multi-million pound rescue package, stranding thousands of passengers and crew members worldwide, including in New Delhi and Goa.

Nearly 40 crew members of the Edinburgh-based airline were said to have been stranded in New Delhi, though their hotel expenses had been paid until January 3.

The airline’s crew was also stranded in Goa, among other global tourist destinations.

Nearly 800 jobs will be lost at Flyglobespan and about 5000 holiday makers have been left stranded abroad as the aviation industry faces difficult times.

British Airways is also facing rough weather as its crew members decided to go on a 12-day strike over the Christmas period.

Due to Flyglobespan’s collapse, nearly 5,000 people will miss out on Christmas and New Year holidays they had booked.

Industry estimates said nearly 90,000 people may have booked flights with the airline and face the prospect of not getting refunds.

Bruce Cartwright, of PricewaterhouseCoopers in Scotland, who is joint administrator of the collapsed company, said, “Unfortunately, a lack of confidence in the sector following the demise of other airlines resulted in a reduction of liquidity.

“Our focus right now is on assisting those passengers who need to complete return journeys and communicating with those who have future reservations.”

In a statement, the administrators said the Civil Aviation Authority would be responsible for the repatriation of people who were on holidays booked as part of a Globespan package holiday.

Transport Minister Paul Clark said, “I urge all affected passengers to identify themselves as former Flyglobespan customers to alternative carriers in order to ensure they benefit from these special repatriation fares.”

A Scottish government spokesman said news of the airline’s collapse was “extremely disappointing”, adding that “customers booked with Globespan either returning from holidays or about to travel can seek further advice through the Civil Aviation Authority’s website”.