An airline wishing to carry passengers by land must secure a number of licensing and legal requirements, but the most essential is an Air Operator’s Certificate (AOC). This operating license, required for every airline, is handed out by the aviation regulatory authority of the given country.
In the United States, it is granted by the Federal Aviation Administration (FAA) and requires an airline company to prove that it has the necessary aircraft, personnel, security systems and financial resources to be a functioning airline.
Similar agencies that grant AOC licenses in other countries include the United Kingdom’s Civil Aviation Authority, Transport Canada and France’s Direction Générale de l’Aviation Civil. Figures from the International Air Transport Association (IATA) show around 30 new airlines receiving AOCs in 2024, slightly fewer than in previous years due to the economic downturn.
An airline can lose its AOC when it fails a safety audit or is forced to shut down in bankruptcy. International airlines recently suspended or canceled after ceasing operations last year include Armenian Airlines, Jet Paris and Brazil’s Passaredo, ch-aviation reported.
Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 Bankruptcy for the second time August 29,2025.
Raven Alaska: Closed operations on August 2025 After a previous Chapter 11 proceeding; Discontinue flights and combine with other operations such as New Pacific.
Corporate Air: Filed for Chapter 11 In bankruptcy (reorganization). 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.
Brathans Airlines: Forced to file for bankruptcy and cancel all flights September 2025.
In November 2025, Lithuanian aviation company Aviation Solutions Group closed all operations of SmartLynx Airline, according to FlightGlobal, amid plans to consolidate and sell various European branches of charter and cargo airlines.
Three AOCs for Latvia, Estonia and Malta were later sold to Dutch hedge-fund company Stichting at break point.
RELATED: Another regional airline shuts down and cancels all flights, leaving some stranded
The airline has not operated any flights while undergoing a court restructuring, but its future is now formally cemented, with Estonian authorities revoking the SmartLynx Airlines branch’s AOC in the country on December 18, ch-aviation reported.
SmartLynx Latvia was founded in 2012 out of Tallinn with aircraft provided by the parent company SmartLynx Estonia. According to Aerospace Global News, after decades of operating as a wet-leased carrier with more than 120 aircraft, the latter entered bankruptcy proceedings with more than €522,000 in tax and credit debts.
More than €125,000 of SmartLynx’s debt was owed by the parent company to the now-closed Estonian branch.
As the restructuring process is expected to take months, at least 120 pilots, flight attendants and other airline staff are out of a job, along with passengers affected by the canceled flights.
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When the airline declared bankruptcy last November, some SmartLynx employees reported not receiving their final paychecks and having to book their own plane tickets home after being stranded in countries like Vietnam.
“Effective today, we are ceasing our commercial operations,” SmartLynx Airlines said in a Nov. 25 statement.
“This decision came after a thorough assessment of our situation and long-term vision, and was not taken lightly. We started as a small Latvian airline with big dreams, and over 33 years have grown into an international family known for flexibility, adaptability, and a never-give-up spirit.”
Related: Struggling airline files for Chapter 11 bankruptcy
This story was originally published by TheStreet on December 24, 2025, where it first appeared in the Travel section. Add TheStreet as a preferred source by clicking here.
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