Israeli authorities have revoked the operating licence of carrier Sun D'Or, citing non-compliance with international standards.
Sun D'Or is based in Tel Aviv and operates a fleet of three Boeing 757-200s.
The airline is owned by El Al and specialises in scheduled and charter services to a range of European destinations.
Israel's ministry of transport states that the Israeli Civil Aviation Authority has "decided to deny" an operating licence to Sun D'Or from 1 April.
The decision follows discussions with delegations from the European Commission following its expressing "reservations about the company's operations", the ministry adds.
It says the CAA told Sun D'Or more than a year ago about the problems but, despite efforts to correct the issues, the CAA is not satisfied.
The ministry has not detailed the specific problems with the carrier, which was founded in 1977 as El Al Charter Services and rebranded as Sun D'Or four years later.
El Al says it has not been officially notified of the CAA's decision, although it acknowledges the European Commission discussions over Sun D'Or's operations and structure and that it has been facing possible operating restrictions on its flights.
Source: Air Transport Intelligence news