EUROSCOT Express has made 22 staff redundant after failing to secure a $5m cash injection.
The Bournemouth-based airline ceased flying Glasgow and Edinburgh routes earlier this month after agreements on the transfer of the money remained unsigned.
Chief executive Jack Romero said: "The redundancies were among ticketing staff and reservations. We had cash-flow difficulties and appealed for a $5m investment, but it needs time to materialise."
The money is due to come from a syndicate of investors, but Romero said there was no clear date as to when it may arrive.
Euroscot's Air Operators' Certificate has been suspended.
However, the Bournemouth routes are still operating as Gill Airways stepped in to keep them going.
The carrier also took on the redundant staff.
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