Which Airlines Have Liquidated Or Filed For Bankruptcy During The Coronavirus Crisis?

The coronavirus has seen a number of airlines go out of business all over the world. Carriers have faced near-zero demand and a slew of travel restrictions, pushing them to financial peril. To help keep track of all the bankruptcy and liquidation stories we’ve made a list all with the major airlines.

This list is not exhaustive and there could be a few airlines we miss, do let us know of those in the comments. We are also not including fully-owned subsidiaries which have decided to shut down, unless they are being liquidated.


Flybe
UK-based Flybe became one of the first casualties of the coronavirus, with the airline suspending all operations in early March. The collapse came after months of financial struggle for the airline, which even saw it receive a bailout from the British government. The airline is now in administration with its chances of revival looking bleak.

Flybe served primarily as a regional European carrier, connecting a number of smaller destinations in the UK. The airline had the largest fleet of Dash-8s in the world and even purchased the Embraer E-series jets (which proved to be a costly mistake).


Following a number of mistakes, intense competition, and slowing growth, Flybe was in dire straits by 2020. However, while the coronavirus proved to be the final nail in the coffin, with lenders giving up on the airline, the story of Flybe’s collapse is a long one.

Air Italy
The sudden collapse of Air Italy is one that came as a surprise to many. The airline decided to shut down and liquidate in early February after majority shareholder the Aga Khan withdrew support. The decision to liquidate came even before the coronavirus took hold in any country outside China.

However, this didn’t mean Air Italy wasn’t facing a number of issues. The airline failed to turn a profit during its existence and reported a €160 million in losses for 2018, with that figure expected to reach €230 million in 2019.

The grounding of the 737 MAX also forced the airline to slow its growth, reducing its fleet size by 25% and deferring its new order (which has since been canceled by Qatar Airways).


Eventually, when the airline faced possible liquidation due to its losses, its majority shareholder pulled support, even though Qatar was willing to continue support. The decision to do so came after airlines began seeing a decrease in travel due to coronavirus fears. However, it seems the decision to liquidate was a wise one since Italy saw a massive wave of coronavirus cases just weeks after the decision, decimating the travel industry.

NokScoot
Bangkok-based joint venture airline NokScoot has been the most recent airline to shut down and liquidate its assets. The decision to do so came after it became clear that travel was unlikely to rebound to pre-pandemic levels before 2022, NokScoot told analytics firm Cirium.

NokScoot is owned 51% by Nok Air, the Thai low-cost airline, and 49% by Scoot, Singapore Airlines’ low-cost arm. The airline operated Bangkok’s Don Mueang Airport and flew a fleet of 777s to a number to a number of short- and medium-haul destinations, including New Delhi, Osaka, Nanjing, and more.

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