Bankrupt regional airline cancels, cancels all flights

With aviation being one of the most expensive industries in which one can join a new company, small airlines from time to time go bankrupt or in some cases close down before taking off.

An Air Operator’s Certificate (AOC) issued by a country’s aviation regulatory body requires an airline to prove that it has the necessary aircraft, staff and financial resources not only to start but to remain operational into the foreseeable future.

Airlines that have recently lost their AOCs due to their financial situation include the Swedish carrier H-Bird, the Austrian charter airline behind several regional airlines in Europe, and the SmartLynx company.

Launched by British green investor Dale Vance with grand plans to become the world’s first zero-emissions regional airline, Edinburgh-based Ecojet Airlines has now ceased all operations after entering voluntary liquidation or the British equivalent of Chapter 7 bankruptcy in January 2026.

A recent attempt to raise £20 million from new investors ultimately failed. The initial plan, unveiled in 2023 by Vince and former pilot Brent Smith, was to buy older Twin Otter and ATR 72 aircraft and then replace their kerosene engines with hydrogen-electric engines developed by aircraft manufacturer Zeroya.

RELATED: Another regional airport files for Chapter 7 bankruptcy and liquidation

It also promised investors an initial route between Edinburgh and Southampton and eventual expansion to cities within the UK, mainland Europe and eventually an ambitious network of long-haul flights.

But the initial funds personally invested by Vance have ended due to complications surrounding the replacement of engines and the use of a propulsion system that is only in the early stages of testing across the industry.

Dale Vance envisioned the Ecojet as a zero-emission airline that would operate flights between cities including Edinburgh and Southampton.Image source: Shutterstock · Image source: Shutterstock

In January 2025, Ecojet laid off almost all of the staff employed to develop the airport and suspended flight plans for future flights indefinitely. With liquidation proceedings now underway, the latter is criticizing the project as an application submitted to Edinburgh Sheriff Court “asked the court to order the liquidation of Ecojet Airlines Limited by the court and to appoint a joint provisional liquidator.”

• Spirit Airlines (Spirit Airlines Holdings, Inc.): Filed for Chapter 11 Bankruptcy for the second time August 29 2025.

• Round Alaska: stop operation on August 2025 After the previous Chapter 11 proceedings; Stopped flights and shut down other operations such as New Pacific.

• Corporate weather: Filed for Chapter 11 Bankruptcy (reorganization) in September 2025 As part of a planned sale, according to Bondoro.

• Play Airlines: The Reykjavík-based airline ceased operations and entered involuntary bankruptcy September 2025

• Braathens Airlines: The airline was forced to file for bankruptcy and canceled all flights September 2025.