UK’s first ‘electric airline’ collapses: What the EcoJet liquidation means for passengers and staff

A major setback occurred for the aviation industry when a planned airline promised to transform green air travel, collapsed before carrying a single passenger. 

Edinburgh-based EcoJet Airlines has entered liquidation as of May 1, 2026, after failing to secure £20 million in necessary funding. Despite high expectations, the airline collapsed before it could complete a single commercial flight.

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The downfall began in February when provisional liquidators were first appointed, leading to the cancellation of all planned bookings and routes. 

Founded in 2023 by green energy tycoon Dale Vince, the airline planned to retrofit existing aircraft with hydrogen-electric engines rather than building new ones. 

The company claimed its model could have saved 90,000 tonnes of CO2 annually, with initial flights planned between Edinburgh and Southampton.

Concerning the situation, founder Dale Vince is a major donor to the Labour Party, and a controversial supporter of the protest group Just Stop Oil; consequently, the company’s failure adds to the debate regarding the viability of scaling hydrogen-electric technology in the current aviation market.

In this connection, a spokesperson for the firm stated: “EcoJet was a start-up business and has no material assets. The members have elected to fund the liquidation process to ensure that the company’s employees receive their full statutory entitlements.”

Unlike many corporate collapses, EcoJet’s owners have chosen to personally finance the liquidation process. This decision ensures that all former employees will receive their full statutory payments and legal entitlements, despite the company itself having no material assets. 

Despite the setback, Mr Vince voiced confidence about the eventual success of electric flight, adding: “This is a vital frontier in the move to net zero, green living, whatever you choose to call it- and it’s absolutely doable.”