A plane belonging to the South Sudan Supreme Airlines Aviation Company fell from the sky immediately after take-off at an airstrip in the eastern Jonglei State.
All passengers including seven women and crew on board the small aircraft perished in the crash.
President Salva Kiir said the airline's suspension is "temporary... to deal with these avoidable air accidents"
He vowed that laws governing civil aviation in South Sudan will be strengthened.
According to him, the move was imperative to restoring public confidence in the country's aviation industry which has witnessed a string of air disasters in recent years.