Indonesia has cancelled the air operator's certificate (AOC) of grounded Indonesian carrier Adam Air, putting an end to an airline that was involved in Indonesia's most fatal crash in the last couple of years.

Deputy director of flight standards at Indonesia's Directorate General of Civil Aviation (DGCA), Diding Sunardi, says the authority sometime around June 16 cancelled Adam Air's AOC.

Indonesia's transport ministry on March 18 forced the airline to ground its entire operations because of shortcomings in the airline's operational, training and maintenance procedures.

Adam Air had also encountered financial problems and the carrier's two owners were unable to agree on new funding for the cash-strapped carrier.

Companies linked to Indonesian investment group Bhakti Investama owned 50% of the airline while the family of Adam Suherman owned the other half.

Suherman was the airline's founder and usually the one that handled media enquiries about accidents and safety incidences the airline was involved in.

A few days prior to the airline closing, one of its aircraft skidded off the runway at Batam island causing damage to the aircraft but no human fatalities.

Adam Air launched in December 2003 and during its time it had several safety incidences, the most horrific being the January 1, 2007, crash in which an Adam Air Boeing 737-400 plunged into the water in Indonesia's Makassar Strait killing all 102 people on board.

A later report into the accident, by Indonesia's National Transportation Safety Commission, attributed it to pilot error.

Photograph: Adam Air aircraft parked at Guangzhou Baiyun International Airport. Photo contributed by CARNOC.com message board member - bbpig.