Kingfisher Airlines in India has lost its flying permit after a deadline to renew its suspended licence expired.
The debt-ridden airline has been grounded since October after repeated strikes by employees over unpaid wages.
The BBC reports Kingfisher has debts of $US1.4 billion and lenders have refused to give fresh loans.
Civil Aviation director general Arun Mishra said Kingfisher's flying permit lapsed, after failing to provide additional details on operational funding.
Owned by billionaire Vijay Mallya, Kingfisher has made annual losses for five years.
The airline has not been able to pay its dues to staff, airports, tax agencies and its lenders.
