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Nordic budget airline Primera Air said that it was ceasing all operations from Tuesday.
"On this sad day we are saying Goodbye to all of you," Primera Air said in a statement on its website.
Primera Air, which is Icelandic owned but based in Copenhagen, began in 2003 and has served 97 destinations in more than 20 countries.
The airline announced in September that it planned to launch routes from Madrid to New York, Boston and Toronto at an introductory price of 149 euros ($172) each way.