Green Aviation Dream Grounded: Ecojet Becomes Latest Regional Airline to Liquidate
The regional airline industry faces a turbulent start to 2026, with another carrier ceasing operations. Ecojet, a British startup with ambitions to launch the world's first zero-emission airline, has entered voluntary liquidation, marking the third such failure in just two weeks.
The move follows the abrupt suspension of all flights by Royal Air Philippines on January 4, stranding thousands of travelers, and the liquidation of India's Dove Airlines on January 5 after a prolonged search for investors proved fruitless.
Ecojet's story began with high hopes in 2023. Founded by green energy entrepreneur Dale Vince and former pilot Brent Smith, the plan was revolutionary: convert older Twin Otter and ATR 72 aircraft by replacing their conventional engines with hydrogen-electric powertrains from ZeroAvia. The goal was to operate emission-free routes between UK cities like Edinburgh and Southampton.
Related: Airline Bankruptcies Continue as Travel Demand Shifts
However, the ambitious technical and regulatory challenges proved insurmountable in the current financial climate. Deadlines for demonstrating progress to regulators were repeatedly pushed back throughout 2024. While Vince personally funded the initial stages, including an order for 70 ZeroAvia engines, the crucial influx of additional investment never materialized.
By January 2025, the company had laid off most of its staff. London-based insolvency practitioners Paul Dounis and Mark Harper of Opus were appointed on January 14 to oversee the liquidation. In a statement, Opus noted Ecojet had "no material assets," with the process being funded to ensure employees receive their statutory entitlements.
In a statement, Vince framed the shutdown as a pause. "It was an honest effort to advance zero-emission aviation," he said. "It ultimately took longer than we hoped to get the technology and regulatory pieces of the puzzle in alignment."
Industry Reaction:
Michael Thorne, Aviation Analyst at Skylight Consultancy: "Ecojet's failure is less about the viability of sustainable aviation and more a classic case of a capital-intensive startup hitting a funding wall. The underlying technology continues to develop, but the market for high-risk ventures has contracted sharply."
Sarah Chen, Former Ecojet Project Manager: "It's devastating. We were so close to something transformative. This isn't just a company failing; it feels like a setback for the entire green transition in aviation. Investors talk a big game on ESG but vanished when it came to backing real, hard tech."
David Rigby, Frequent Business Traveler: "It's a shame, but not a surprise. We've seen this story before—overambition, undercapitalization. My concern is for the employees and the passengers left holding worthless tickets on other failed lines. The regulatory framework needs to better protect consumers from this domino effect."
This story was originally reported by TheStreet on January 29, 2026.