PricewaterhouseCoopers (PwC), the administrators, said they would make most of the firm’s 800 staff redundant after the airline fell victim to a lack of cash.
The administration is likely to cause chaos for about 5,000 people due to fly with the Edinburgh-based airline in the next few days.
PwC joint administrator Bruce Cartwright said a lack of investor confidence in the industry after other carriers collapsed had left the group unable to secure extra funding.
“With regret, the business can no longer continue to operate,” he said.
The Globespan Group and Alba Ground Handling appointed PwC yesterday.
Other group businesses, such as the airline known as Flyglobespan, are likely to enter administration today.
Cartwright said the administrators would try to ensure passengers had the information they needed to return home or to claim refunds for planned flights.