A provisional liquidator has been appointed to Citywing – as 16,000 passengers who had booked flights anxiously wait for news over refunds.

The ticket seller ceased trading late on Friday night amid spiralling losses after the Czech airline that operates its flights had its permit to fly in UK air space withdrawn.

Citywing managing director David Buck said: ‘We are totally devastated that we had to take this decision.’

He told iomtoday that up until 5pm on Friday the directors were speaking to a potential investor, which would have allowed the company to continue to trade.

Mr Buck said: ‘We certainly didn’t take the decision lightly. We knew it was the right action to take.’

A creditors’ meeting will take place at the Palace Hotel at 10am on March 24 when the directors will propose that Craig Mitchell is formally appointed as liquidator.

Mr Mitchell said: ‘They monitored their solvency carefully and it was as a result of other issues that they ultimately decided to put the company into voluntary liquidation.’

On Sunday, Eastern Airways – whose aircraft and crews are used on the BA London City service – stepped in to take over the Belfast and Newcastle routes. Eastern Airways’ inaugural flight to Belfast on Monday was cancelled as no passengers had booked a seat.

Airport director Ann Reynolds has been in talks with a number of airlines and said she is confident that the Scottish air link can be restored too.

Citywing’s sudden demise follows an incident during Storm Doris last month when a flight to Belfast was diverted back to Ronaldsway and was unable to taxi to the stand due to the very high winds.

The Civil Aviation Authority was called in to investigate.

Advice on how to claim a refund is being offered to the 16,000 passengers who have booked with Citywing which operated flights from Ronaldsway to Blackpool, Belfast, Glasgow, Newcastle and Gloucester as well as a summer-only service to Jersey.

Mr Mitchell said with so many creditors, the liquidation would take some time and he advised passengers to contact their credit card or travel insurance provider who would be able to process claims much sooner.

The Civil Aviation Authority tweeted on Monday that Citywing is not covered by the ATOL Protection scheme. ‘Passengers who booked directly via either a credit, charge or debit card may alternatively be able to make a claim against their card provider,’ the CAA said.

‘Some card providers will ask for a negative response letter confirming the position. Passengers may also be able to make a claim against their travel insurer.’

Advice has also been offered by the island’s Office of Fair Trading.

It said this is an evolving situation, but suggested passengers who paid by credit or debit card should contact their card provider as soon as possible. The OFT also advised passengers to check their travel insurance.

Ciywing posted on Facebook late on Friday night: ‘We apologise for the inconvenience caused and thank you all for your support over the last four years.’

Van Air has not lost its air operator’s licence issued by the Czech authorities. But its permit to fly in UK airspace was withdrawn by the CAA pending the investigation into the Storm Doris incident.