About 4,500 passengers are stranded - mostly in Spain, Portugal, Cyprus and Egypt. The Civil Aviation Authority will be repatriating about 1,100. Last year the airline carried more than 1.5m passengers, on 12,000 flights.
It operated mainly from Edinburgh, Glasgow Prestwick and Aberdeen, but also flew transatlantic services from other UK cities including Gatwick and Belfast.
It also flew charter flights from Manchester to Egypt.
Administrators PricewaterhouseCoopers said Edinburgh-based Globespan was contacting all the passengers booked with or travelling with the airline.
One senior cabin crew member for Flyglobespan told the BBC he had not yet been contacted by the company.
Tom Maguire from Prestwick added: "I'm completely devastated by this news the week before Christmas. I feel totally let down.
"There is nothing on the staff website, we're just hearing things through Facebook. No one has told me that I don't have a job."
Passenger Audrey Duncan from Edinburgh had been due to fly with the airline later.
She said: "I have had no contact from the airline as yet which I find disappointing. I'm sure there are staff who would be able to send an e-mail to customers like me in a very short space of time."
Not protected
Flyglobespan went into administration after attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments broke down.
In a statement, the administrators said the Civil Aviation Authority (CAA) would be responsible for the repatriation of about 1,100 people who were on holidays booked as part of a Globespan package holiday.
However, a further 3,400 people are overseas and are not protected after booking directly through flyglobespan.com.
Customers who booked Flyglobespan flights directly via the Flyglobespan website or the call centre will not get a refund on the cost of their flight but the Department of Transport said they may qualify for a reduced rate repatriation fare.
Travellers booked on cancelled flights have been advised not to go to the airport and contact the Globespan helpline, or check its website, for information.
Meanwhile, easyJet and Ryanair have offered those passengers affected special "rescue" fares to allow them to return home where their routes overlap with those of Flyglobespan.
And Thomas Cook said it had arranged additional capacity for its flights out of Glasgow Airport.
Transport minister Paul Clark said: "I urge all affected passengers to identify themselves as former Flyglobespan customers to alternative carriers in order to ensure they benefit from these special repatriation fares."
There are also 27,000 people who have future flights booked through the Air Travel Organisers' Licensing (Atol) insurance scheme, and around 90,000 people who have forward bookings but have no Atol protection.
They may be protected under their own personal travel insurance or through their credit card transaction.
It is understood Flyglobespan also has a contract with the Ministry of Defence (MoD) to transport troops to and from destinations such as the Falklands.
Sad day'
Edinburgh airport's managing director, Gordon Dewar, said: "This is a sad day for the Scottish aviation industry." "However, our immediate attention must turn to the thousands of passengers who were due to fly with the airline over the coming months."
"We are already holding urgent discussions with a number of other airlines and are hopeful of replacing much of the capacity that has been lost from Flyglobespan going into administration."
A Scottish government spokesman said news of the airline's collapse was "extremely disappointing", adding that "customers booked with Globespan either returning from holidays or about to travel can seek further advice through the Civil Aviation Authority's website".
Earlier this year, Flyglobespan, which was set up in 2002, announced it had made an operating profit of £1.2m following a loss of £19m the previous year.
However, earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate.
A helpline for passengers will be operational from 1000 GMT - 0871 271 9000.
Source: BBC and others
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