Hopes of saving Silverjet, the all business class transatlantic airline, collapsed after the CAA, the UK aviation watchdog, failed to reach agreement with potential rescuers.
The failure of the deal led to the Luton-based carrier laying off its 420 staff.
It is the second time in six weeks that hopes of saving the carrier have been dashed at the last hurdle.
Silverjet's administrators Begbies Traynor agreed terms last week with Kingplace, an Irish investment company backed by Heritage Cie, a Geneva-based trust for it to take over the carrier.
But they warned the deal was subject to CAA approval.
The CAA was dissatisfied with the amount of money available to the carrier.
There was also disagreement over plane hire arrangements, leading to Kingplace to pull out.
Mark Fry, the airline's joint administrator said, although there were potential buyers, said deal to save Silverjet was now unlikely.
He said the amount of money the CAA required to allow Silverjet to fly again was bigger than expected.
Silverjet, a UK carrier, began operations to New York in January 2007. It later added Dubai as a second destination.
Its demise last month followed that of two other all business class transatlanctic rivals MAXjet Airways and Eos Airlines. The first went out of business in December and the second in April.
Silverjet stopped its service late last month after a $5m cash injection it expected to receive from a UAE-based company Viceroy Holdings failed to arrive.
Only the Paris Orly based L'Avion and Lufthansa are still operating all business class transatlantic services.