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Henson issued an apology over the weekend, but the Blues' management met on Monday to discuss the incident having suspended the player with immeidate effect on Saturday.
Speaking of the decision Cardiff Blues chief executive, Richard Holland, said: "The Cardiff Blues management have discussed the matter at length but have acted swiftly since the incident occurred on Saturday morning.
"Gavin admitted himself that his behaviour was totally unacceptable and the immediate termination of his contract sends out a clear message that behaviour like that will not be tolerated at the Blues. We have a duty to our supporters and sponsors to protect the good name of Cardiff Blues and those associated with our brand.
"Gavin Henson is obviously a talented rugby player and it's unfortunate that his career at the Blues has ended this way. However, we would like to thank him for his service and wish him the best of luck with his future career."
Henson signed an eight month contract with the Blues in October and last weekend was his eighth game for the region. He played in the Heineken Cup win at London Irish earlier in the season.
In his public apology over the weekend Henson admitted he had been out drinking in Glasgow on Friday night and then continued on the flight home.
"I can see that drinking and behaving inappropriately on that flight as a professional sportsman at 7.00am has caused offence to members of the public, the Flybe Airline staff and passengers," said Henson.
"I know that I have let my team mates, coaches, management, sponsors and indeed my family down with my actions. Drinking on that plane was inexcusable and I know that I must take responsibility for it. I also accept that in the light of this I need to learn from it and ensure this does not happen again."
