It was done because he was giving a cut of the wealth to the masses instead of to neocolonial powers
No, a no fly zone was instated because Gaddafi was ordering air strikes on his own citizens, to the extent that his own representative to the UN asked for the no fly zone:
21 February 2011: Libyan deputy Permanent Representative to the UN Ibrahim Dabbashi called “on the UN to impose a no-fly zone on all of Tripoli to cut off all supplies of arms and mercenaries to the regime.”