Pietermaritzburg - Velvet Sky airline was liquidated by the KwaZulu-Natal High Court in Pietermaritzburg on Thursday.
Judge Phillip Nkosi rejected a request for an adjournment and said he did not believe this was in the interests of creditors.
During earlier hearings, the court heard that Velvet Sky owed almost R100m to its creditors.
Gerrie Roberts, for creditors BP Southern Africa, said on Thursday the application for a further adjournment only delayed the inevitable liquidation.
The low-cost airline was placed under provisional liquidation in May.
At the time, presiding Judge Shyam Gyanda dismissed a second application, by Umzamo Transport Services, for a business rescue plan to be implemented.
He said the application provided scant detail and might be a ploy to delay liquidation proceedings.
On March 7 Umzamo, of Avoca Hills in Durban, claimed Velvet Sky owed it more than R3.9m.
Velvet Sky executive officer Dhevan Pillay said daily expenses could be met if foreign investors provided funds, and if costs were cut.
Major fuel companies decided to stop supplying fuel to Velvet Sky because bills were not being paid.
In February, BP SA launched an application for provisional liquidation.