Dutch Caribbean airline InselAir Aruba has been officially declared bankrupt by a court in Aruba.
The airline was granted payment deferment by the court, the Curacao Chronicle reported.
All flights are currently grounded, it said.
A planned restructuring of the business did not happen, the court heard, and no measures were taken to cut costs.
The bankruptcy will not impact sister airline InselAir International which is a separate entity to the Aruba based carrier.
InselAir International is also struggling but it said in a news release it is business as usual and its stabilization plan is making progress.
"We still have some ways to go but the foundation is being further solidified every day for the assurance a healthy future and for the long-term connectivity within the Dutch Caribbean territories," said InselAir International CEO Gilles Filiatreault.
