With aviation one of the most expensive industries in which one can break into with a new company, smaller airlines periodically end up going bankrupt or in some cases shutting down before they can take off.
The Air Operator’s Certificate (AOC) given out by the aviation regulatory agency in a given country requires the airline to prove that it has the necessary aircraft, staff and financial resources to not just launch but stay operational in the coming future.
Airlines that have recently lost their AOCs due to its financial situation include Swedish carrier H-Bird, Austrian charter airline Mali Air and the SmartLynx company behind several regional airlines in Europe.
Launched with big plans of becoming the world’s first zero-emission regional airline by British green investor Dale Vince, Edinburgh-based Ecojet Airlines has now shut down all operations after entering voluntary liquidation, or the British equivalent of Chapter 7 bankruptcy, in January 2026.
A last-ditch attempt to raise £20 million from new investors have ultimately failed to pan out. The initial plan unveiled by Vince and former pilot Brent Smith in 2023 had been to purchase old Twin Otter and ATR 72 aircraft and then convert their kerosene engines for hydrogen-electric ones developed by aircraft maker 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 an eventual expansion to cities within the UK, mainland Europe and eventually an ambitious network of long-haul flights.
But the initial funds invested by Vince personally ran out due to the complexity around converting engines and using a propulsion system that is only in the very early stages of being tested across the industry.
In January 2025, Ecojet laid off almost all of the staff hired to develop the airline and grounded the flight plans for any future flights indefinitely. With the liquidation process now underway, the final axe has slammed on the project as a petition submitted to 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.): Filed for Chapter 11 bankruptcy for the second time on August 29, 2025.
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Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
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Corporate Air: Filed 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 shut down operations and entered involuntary bankruptcy in September 2025.
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Braathens Airlines: The airline was forced to file for bankruptcy and canceled all flights in September 2025.
