The fraud squad is investigating Excelsis Airways following the resignation of its entire management team.
Cleveland Police were called in by 12 staff of the airline, which was due to operate regular premium flights between Durham Tees Valley Airport and London City when it launched last month.
Other short-haul destinations were under consideration.
However, with no sign of flights and after not being paid for three months, staff have handed in their resignations. The police have launched an investigation.
A Cleveland Police spokeswoman added: “Cleveland Police can confirm a complaint of fraud has been made in relationship to Excelsis Airways.
“This complaint is currently being investigated by officers from the economic crimes unit, a branch of the fraud squad.”
Although the airline’s website excelsisairways.com remains online, it is unbookable as vital information is missing.