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Asolica > Blog > Finance > World airline cancels all flights in Chapter 7 liquidation plan
Finance

World airline cancels all flights in Chapter 7 liquidation plan

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Last updated: January 12, 2026 7:11 am
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1 month ago
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World airline cancels all flights in Chapter 7 liquidation plan
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The primary airline liquidations of 2026 have already began rising.

Contents
  • Indian constitution airline Dove Airways enters voluntary liquidation course of
  • “The airline remained plagued by financial stress”: Dove Airways
    • These airways filed for chapter in 2025:

The primary airline to formally stop operations in 2026 is Royal Air Philippines — the Manila-based constitution and cargo airline extra generally known as Royal Air acquired licensing to run business flights in 2017 and rapidly expanded to worldwide locations like Cambodia, China, South Korea, Hong Kong and Taiwan.

On Jan. 4, the airline confirmed that it was canceling all of its business flights in a state of affairs that left between 3,000 and 4,000 vacationers with tickets booked between till March 2026 having to hunt out different journey choices. Whereas the airline at the moment states that it’s trying ahead to “welcoming you aboard soon,” a protracted string of recorded monetary challenges makes any situation aside from a complete shutdown more and more unlikely.

Indian constitution airline Dove Airways enters voluntary liquidation course of

A second airline to close down fully in 2026 is Indian constitution service Dove Airways. As first reported by native Insolvency Tracker, the airline that was based in 2007 out of Kolkata has entered the voluntary liquidation course of on Jan. 5 after a number of makes an attempt to show its funds round didn’t come into impact.

The airline has not operated flights since 2022 when it misplaced its final Cessna CitationJet/CJ/M2 jet to collectors. In 2015, manufacturing firm Usha-Martin divested its 50% stake within the constitution service on account of sustained monetary losses.

Associated: One other airline information for Chapter 7 chapter, all flights canceled

The Nationwide Firm Legislation Tribunal (NCLT) of India has saved the airline in insolvency proceedings for years on account of efforts to seek out new funders and switch its funds round (the corporate introduced in modest earnings of ₹23.9 lakh or $2,600 USD for the 2024 fiscal 12 months) however after these did not materialize the airline has chosen to enter voluntary liquidation proceedings beneath the Insolvency and Chapter Board of India (IBBI).


Dove Airways took flight in 2007 however confronted a number of monetary issues.

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“The airline remained plagued by financial stress”: Dove Airways

“At its peak, Dove Airlines operated as a non-scheduled (charter) carrier, providing passenger and cargo services using regional aircraft like the Dornier 228,” Insolvency Tracker reviews. “Despite ambitious mid-career plans to join the government’s UDAN scheme for regional connectivity, the airline remained plagued by financial stress, grounded fleets, and legal disputes with aircraft lessors.”

These airways filed for chapter in 2025:

  • Spirit Airways (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 chapter 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 different operations resembling New Pacific.
  • Company Air: Filed for Chapter 11 chapter (restructuring) in September 2025 as a part of a deliberate sale, in response to Bondoro.
  • Play Airways: The Reykjavik-based airline shut down operations and entered involuntary chapter in September 2025.
  • Braathens Airways:The airline was compelled to file for chapter and canceled all flights in September 2025.

As a part of the liquidation course of, any collectors who’ve unpaid money owed with Dove Airways have been ordered to submit proof of their claims by Feb. 4 for chapter course of overseen by liquidator Pranab Kumar Chakrabarty.

“The move to voluntary liquidation suggests that the company’s current directors have determined the entity is solvent enough to pay its remaining debts through an orderly asset sale rather than a forced bankruptcy,” Insolvency Tracker reviews additional. “As the February 4 deadline approaches, the once-hopeful regional player prepares for its final landing, closing a thirty-year legacy of Indian private aviation.”

Associated: Worldwide journey firm shuts down in chapter, vacationers stranded

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