Two low-cost airlines lose licenses, all flights off
The most essential license an airline needs in order to launch and sell tickets for commercial flights to passengers is the Air Operator’s Certificate (AOC).
Handed out by the aviation regulatory authority in a given country, the AOC is granted once the airline proves it has the necessary planes, staff, safety systems, and financial resources to operate.
An AOC can be revoked over a failed safety audit. And if a carrier is in a state of insolvency, it has a set period of time to prove that it has a viable restructuring plan. If it fails to do so, the airline can receive a suspension or full revocation that will force its shutdown, even if that was not its plan.
AirThailand and Really Cool Airlines no longer have AOCs: report
Airlines that lost their AOCs over the last few months include Estonia-based SmartLynx Airlines, Austria-based Mali Air, and Swedish charter carrier H-Bird. The latter airline had run into deep debt from a business model that targeted wealthy travelers who book charter flights, but it did not bring in enough of them to cover operating costs.
As first reported by ch-aviation, two low-cost airlines in Thailand have become the latest to lose their AOCs.
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Rebranded from the defunct Asia Atlantic Airlines in 2024, AirThailand was relaunched in 2024 with the goal of running short flights to China, Japan, and the United Arab Emirates out of its base in Bangkok-Suvarnabhumi Airport (BKK), but the carrier ultimately failed to get off the ground.
While reasons for the lost AOCs have not been made publicly available, AirThailand tried to enter a market full of competition from a large number of Asian airlines also flying the same routes to popular tourist destinations. These include AirAsia and in particular, Jetstar Japan.
What happens when an airline loses an AOC?
Founded in 2018, also out of Suvarnabhumi Airport, Really Cool Airlines had been preparing to launch its first flights within Asia in 2026. Now, however, it reportedly no longer has a valid AOC.
Founder and CEO Patee Sarasin had previously spoken of planned routes to Japan, Singapore, Hong Kong, Taiwan, and Kazakhstan, as well as eventual plans to expand to London and Australia.
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Regional airlines that recently filed for bankruptcy:
- Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on August 29,2025.
- Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
- Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro.
- Play Airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in September 2025.
- Braathens Airlines:The airline was forced to file for bankruptcy and canceled all of its flights in September2025.
In Thailand, the regulatory agency granting AOCs is the Civil Aviation Authority of Thailand (CAAT).
Neither CAAT nor either of the two airlines have commented on reports that they lost their licenses.
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