Since aviation is one of the most expensive industries one can enter with a new company, smaller airlines periodically end up going bankrupt or, in some cases, closing before they can take off.
The Air Operator Certificate (AOC) granted by the aviation regulatory agency in a given country requires the airline to demonstrate that it has the aircraft, personnel and financial resources necessary not only to launch but to remain operational for the foreseeable future.
Among the airlines that have recently lost their AOCs due to their financial situation are the Swedish airline H-Bird, the Austrian charter airline Mali Air and the company SmartLynx, behind several regional airlines in Europe.
Launched with big plans to become the world’s first zero-emission regional airline by British green investor Dale Vince, Edinburgh-based Ecojet Airlines has closed all operations after entering voluntary liquidation, or the British equivalent of Chapter 7 bankruptcy, in January 2026.
A final attempt to raise £20 million from new investors was ultimately unsuccessful. The initial plan revealed by Vince and former pilot Brent Smith in 2023 was to buy old Twin Otter and ATR 72 aircraft and then convert their kerosene engines to hydrogen electric motors developed by aircraft manufacturer ZeroAvia.
Related: Another regional airline files for Chapter 7 bankruptcy and liquidates
The pitch to investors also promised an initial route between Edinburgh and Southampton and eventual expansion to cities in the UK, continental Europe and, eventually, an ambitious long-haul flight network.
But the initial funds invested by Vince personally were exhausted due to the complexity involved in converting engines and using a propulsion system that is only in the early stages of industry-wide testing.
In January 2025, Ecojet laid off almost all staff hired to develop the airline and indefinitely suspended flight plans for future flights. With the liquidation process now underway, the final ax has fallen on the project as a petition lodged at Edinburgh Sheriff Court asked “the court that Ecojet Airlines Limited be wound up by the court and joint interim liquidators appointed”.
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Spirit Airlines (Spirit Aviation Holdings, Inc.): Presented for Chapter 11 bankrupt for the second time August 29, 2025.
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Alaska: Ceased operations in August 2025 following prior Chapter 11 proceedings; It closed flights and joined other operations such as New Pacific.
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Corporate Air: Presented for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro.
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Play airlines: The Reykjavik-based airline closed its operations and entered involuntary bankruptcy in September 2025.
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Braathens Airlines: The airline was forced to declare bankruptcy and canceled all flights in September 2025.