Citywing’s demise was raised as a question of urgent importance in the House of Keys.

Douglas North MHK David Ashford asked what provisions were in place for stranded passengers and what was being done to secure the future of the routes.

Infrastructure Minister Ray Harmer replied that there was as yet no provision other than customers seeking refunds through their credit and debit card provider or travel insurance company.

’Citywing will be giving out further information this week regarding refunds as soon as a liquidator has been appointed,’ he said.

Mr Harmer said he was delighted Eastern Airways had taken over the Belfast and Newcastle routes - and praised airport bosses for turning the situation around so quickly.

He added: ’Eastern Airways is planning to base an aircraft at Ronaldsway by the end of this month, so that the frequency on the Belfast service will go back to a twice daily service plus some weekend flights, making it more usable for the business community.’

Eastern Airways has reduced its lowest fares for Belfast and Newcastle, which are now from £59 one way, including taxes and charges.

Mr Harmer said he was confident there will be further announcements soon regarding some of the other routes.

The Minister said his department had learned that Citywing’s directors had decided to cease trading a few hours before the announcement was made public at 10pm on Friday evening.

He told MHKs: ’Regrettably, Citywing staff and the staff employed by their handling agent at Ronaldsway, Rendezvous Handling, are in a potential redundancy situation.

’This decision will affect up to around 20 staff. I know that the Department of Economic Development has already made contact with both companies offering support to those affected staff. I hope that any new airlines will look to these staff when recruiting.’

He added: ’The closure of Citywing is one of those examples of a setback that strikes occasionally, often with no notice, and I am determined to try to get services back into place on those key destinations for both the business and leisure communities.

’In closing, I must say that we are very sad to lose a company that has contributed so much to our services to the UK regions.’

Lawrie Hooper (LibVan, Ramsey) asked if the Department of Infrastructure would reconsider whether to allow ’virtual airlines’ to operate on key strategic routes from the island.

The Minister replied: ’It is very much early days and these sorts of things will need to be considered.’