Kiwi Regional Airlines is calling it quits after less than a year in operation.

The airline will be taken over by Air Chathams, who has agreed to absorb the company's singular 34 seat aircraft.

They have also promised to offer employment to the majority of the failed airline's full time staff.

All scheduled services will continue to run until the end of July, and any passengers booked on flights after that will be refunded.

The airline launched in October, led by chief executive Ewan Wilson, who founded the failed trans-Tasman Kiwi International Airlines in 1994.