Aigle Azur has been put into liquidation after a French court ruled against the remaining rescue offers.
Air France-KLM and EasyJet withdrew offers to acquire parts of Aigle Azur after missing a court deadline to improve its bids.
Aigle Azur operated mainly from Paris Orly to destinations primarily in Europe and Africa, using a fleet of Airbus A330s and A320s.
French authorities are offering support to personnel of the troubled carrier. It is also being reported that the government is putting pressure on Air France, which it owns around 14.3% stake in, to “take into account” the situation of Aigle Azur’s 1,150 employees, a report from Reuters said.
The sticking point is that Air France would have had to appeal to its own unions for permission to waive internal rules that stop it from giving pilot roles to new hires.
Aigle Azur filed for bankruptcy on 6 September, cancelling all flights a day later.