Sky Air World ran services for mining companies in Queensland and it began operations more than one year ago to the Solomon Islands’ capital Honiara.
It has been hard hit by the world economic downturn and last week its five jet aircraft were repossessed.
The collapse has ramifications for another two of Australia’s neighbors.
East Timor’s national carrier Timor Air was to have leased one of Sky Air World’s jets.
The collapse is also the end of a proposed joint venture between Sky Air World and Indonesia’s low coast carrier Lion Air.
