The circulating liquid velocity, gas holdup, bubble size distribution, and liquid phase oxygen transfer coefficient were measured in a mini-scale external loop airlift bubble column (MELBC) with the liquid volume suspending enzyme-free liposomes of varying diameters. These values were compared to those for liposome-free MELBC, normal bubble column (NBC), and a larger scale airlift column. The liposomes suspended in the MELBC are incorporated into the liquid film around the bubbles, leading to the development of a foam layer, where the incorporated liposomes exert negligible effect on the oxygen transfer in the film.