Administrators have been unable to find a buyer for troubled airline Flybe, despite last-ditch talks.
The budget operator had seen flights grounded since failing for the second time in three years at the end of last month.
There had been speculation Lufthansa and Air France-KLM were in talks with the administrators to take over the firm.
However, discussions ended without a new deal being agreed.
The process of winding-down the Birmingham-based business is starting, with administrators adding that a further 25 employees would be made redundant immediately.
They are on top of the 277 of Flybe's 321 staff members whose redundancies were previously confirmed by joint administrators at Interpath Advisory.
Intensive discussions
"Over the past two and a half weeks, we've held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets," David Pike, managing director at Interpath, told the BBC.
"However, it is with regret that discussions have now been brought to a close without a deal being agreed."
Despite interest from a number of credible parties, the administrators said challenging circumstances, complexities and high costs associated with the company's operating platform meant a suitable buyer could not be found.
Administrators added that they would continue to provide support to all employees affected, adding they were grateful to organisations across the aviation industry which had offered to support staff in finding new roles.
Flybe was first pushed into administration in March 2020 with the loss of 2,400 jobs as the Covid-19 pandemic destroyed large parts of the travel sector.
Its business and assets were purchased in April 2021 by Thyme Opco, linked to US hedge fund Cyrus Capital.
Flights resumed 12 months later., including to a number of Scottish airports.
FTSE 100
The FTSE 100 was up 36 points at a fresh all-time high of 8,033 shortly after opening this morning, following yesterday's 43-point gain.
The UK's top share index passed 8,000 points for the first time in history on Wednesday.
It hit a new intraday high of 8,003, recovering after plunging to a low of 7,921 during early trading as investors absorbed new inflation data.
This came after the FTSE closed at an all-time high of 7,953.85 on Tuesday, which was the fourth new record set this month.
The internationally-focused index 100 surged as the pound fell 1.5% against the dollar.
Brent crude futures were ahead 0.68% at $85.96 a barrel.
Companies reporting today
- Full-year results: Centrica, Moneysupermarket.Com Group, Nestle, Standard Chartered