Thousands of airline passengers are facing travel chaos after Scotland’s largest airline, Flyglobespan, confirmed it was going into administration, with the loss of 800 jobs.

Flights were cancelled and holiday plans abandoned after accountants PriceWaterhouseCoopers (PWC) assumed control of Globespan Group, the budget carrier’s owners. All flights ceased with immediate effect.

Some 5000 customers due to fly with the airline were advised to contact a helpline set up by administrators, which will open at 10am today.

Any passengers due to travel today were being urged not turn up at the airport “as there is no prospect of their planned flight taking place”.

Flyglobespan operated flights from Glasgow, Edinburgh and Aberdeen airports to destinations in Europe, Egypt and North America. Routes from Belfast and Cardiff airports have also been cancelled.

There were four flights due to depart from Glasgow today and two from Edinburgh. A weekly flight to Tenerife was also due to take off from Aberdeen airport tomorrow, but will no longer take place.

The Civil Aviation Authority will be responsible for the repatriation of those who have booked flights as part of a Globespan package holiday, while passengers who booked through a travel agent should be protected under the Atol scheme. Airport staff and other airlines were assisting stranded passengers last night.

Meanwhile, the administrators confirmed that the majority of the workforce would be made redundant, with only a minimal number retained to help wind down the company.

The fall of Flyglobespan adds to the chaos after British Airways staff voted to strike over Christmas in a row over new conditions and job losses.

Bruce Cartwright, of PWC, said: “We are acutely aware of the distress this situation will cause those travellers who are currently abroad, as well as the impact on those holidaymakers who have booked travel for later this year or 2010.”

A decision in the legal action brought by BA in a bid to prevent the crippling strikes is expected to be given by a High Court judge later today.

Rival airline Ryanair has stepped in to offer an £89 “rescue fare” to Edinburgh and Glasgow for passengers left stranded by Globespan’s collapse.

Linda Blackley, 32, from Troon, had been due to fly home for Christmas from Gran Canaria with Globespan but has now rebooked with Ryanair.

She said: “The service was always top-notch. My gran, who’s 82, flies with them, and my parents. You’re like sardines on some other companies. Much as I respect Ryanair for getting cheap flights, they don’t breed so much loyalty.”

The failure of the no-frills carrier, set up in 2002 amid a boom in demand for cheap flights, follows days of mounting speculation about the financial stability of the Edinburgh-based travel firm.

On Monday, chairman Tom Dalrymple claimed the firm had secured investment that would allow it to “continue to prosper and grow”.

It is the latest in a string of budget airlines to go bust during the past 18 months, including Zoom and XL, and comes amid looming strikes by BA cabin crew and a series of 48-hour walk-outs by check-in staff and baggage handlers at Aberdeen and Heathrow airports.