Tasmanian airline TasAir Pty Ltd has gone into voluntary liquidation.
Some passengers were stranded on King Island after TasAir grounded its planes.
The regional airline has 23 full time and casual workers.
A meeting of creditors has been scheduled for February 14.
Liquidator Robert Tenbensel says TasAir creditors will be contacted as soon as possible with further information.
The airline's been providing two daily services to King Island, and the Mayor Greg Barratt says it is disappointing.
"A little bit apprehensive about, it I suppose, although we're fairly confident that Airlines of Tasmania will step into the void and provide a good service to Devonport." Airlines of Tasmania says it is putting on extra services to help shift the stranded passengers
