Céleste, a regional startup airline based in Morlaix, France, founded in 2021, has been declared into compulsory liquidation by the Brest Commercial Court, as confirmed by the company’s president, Dominique Maguer, to Agence France Presse (AFP). This decision comes despite the airline having never operated any commercial flights.
The airline, which aimed to enhance air connectivity within France, especially between Brest Bretagne, Paris Orly, and Nice, was initially placed into receivership on March 14, a preliminary step before it could commence its intended operations. Céleste struggled from its inception to secure sufficient funding to meet the regulatory requirements set by the French civil aviation authority (Direction Générale de l’Aviation Civile – DGAC) necessary for obtaining an operating license.
Despite receiving an Air Operator’s Certificate (AOC) and securing €500,000 in startup support from the city of Brest, as well as acquiring its first CRJ1000ER aircraft in November, the airline faced continuous delays. These setbacks were largely due to the prolonged process of obtaining the required operating license, leading to repeated postponements of its launch.
The situation escalated after the airline entered bankruptcy protection, during which it continued to negotiate with financiers and commercial partners to reorganize its debts and salvage its operations. However, these efforts did not culminate in the commencement of services, and the court ultimately mandated liquidation on June 25.
The liquidation of Céleste highlights the significant challenges new airlines face in securing adequate funding and navigating regulatory environments to achieve operational status. This outcome not only impacts the airline’s employees and planned services but also affects regional economic growth and connectivity, which Céleste aimed to support as part of broader European Union efforts to enhance regional development.
