The Macau SAR government has revoked Viva Macau Airlines' operating licence, grounding flights and stranding passengers.
According to Viva Macau, some 33 flights have been cancelled, affecting more than 4,700 passengers.
The airline has been unable to purchase fuel in Macau for days, leading to a number of flight cancellations, and leaving passengers marooned at Macau International Airport. This ongoing situation lead to the Macau government's decision to cancel its licence.
"Viva Macau Airlines had taken steps, including prepayment for all weekend flights last Friday afternoon," explained the airline in an online statement.
"Our shareholders had also offered credit guarantees to the supplier. Unfortunately, no agreement could be reached and therefore flights were stopped unexpectedly."
Viva Macau's said it was "deeply surprised" at having its air operator's certificate (AOC) cancelled: "Viva Macau Airlines staff and representatives have been in action to assist affected passengers. We also actively communicate with all parties involved to come up with a solution.
"Therefore, Viva Macau was deeply surprised to learn that our AOC was revoked without any prior notice. We are continuing our communication with all parties to seek a solution."
The airline added it has been in contact with passengers and was providing refunds in accordance with its Conditions of Carriage.
Macau International Airport said it was "working closely with the Macau SAR Government to help passengers affected by the cancellations of services by Viva Macau Airlines".
www.macau-airport.gov.mo www.flyvivamacau.com