Air Madrid Líneas Aéreas S.A. was established in 2003 and started operations in 2004.
The IATA announced that Air Madrid was suspended from IATA operations worldwide on December 15, 2006. The next day, Air Madrid suspended all flights, leaving thousands of people stranded, as a consequence of a Spanish government investigation into its operations and due to constant customer complaints regarding poor service, which resulted in the cancellation of its operational licence. Air Comet signed a deal with the Spanish government to take over the Latin American routes formerly operated by Air Madrid.
Source: Wikipedia