Countless licensing and legal requirements are needed for airlines to operate, with the crucial Air Operator’s Certificate (AOC) being essential. The AOC, granted by regulatory authorities like the FAA in the US, validates an airline’s capacity to function safely and financially. In 2024, about 30 new airlines received AOCs, slightly lower due to economic conditions.

Airlines can lose their AOC due to failed safety audits or bankruptcy. Recently, Armenian Airlines, Jet.Paris, and Passaredo in Brazil had their AOCs suspended or revoked. Spirit Airlines filed for Chapter 11 bankruptcy for the second time, while Ravn Alaska and Play Airlines ceased operations in August and September 2025, respectively.

The SmartLynx airline faced closure in November 2025, with operations shut down. The AOC of its Estonia branch was revoked in December, affecting over 120 pilots, flight attendants, and other employees. SmartLynx faced bankruptcy with significant debt, impacting its European branches and leaving workers jobless.

Despite its 33-year history, SmartLynx Airlines announced its commercial operations cessation last November. Employees were left stranded, with some not receiving final paychecks. The decision was made after a thorough evaluation, reflecting the airline’s growth from a small Latvian carrier to an international family known for resilience.

Read more at Yahoo Finance: Airline shuts down after losing license, last flights canceled