Romanian Airline Dan Air Fights for Survival Amid Financial and Legal Crisis
Romanian airline Dan Air is fighting for survival following a payment processor dispute, canceled bookings, and insolvency filings. The carrier relocated operations to Bucharest amid escalating financial hurdles.
The global aviation industry is facing severe turmoil driven by soaring fuel prices, geopolitical tensions, and ongoing supply chain disruptions, challenging airlines worldwide. Amid this fragile economic climate, small and medium-sized carriers are particularly vulnerable, as exemplified by the Romanian airline Dan Air, which is currently fighting for survival amid a deep financial and legal crisis.
Dan Air announced the cancellation of bookings for passengers who paid through the payment processor Netopia. According to the airline, Netopia withheld approximately 1.37 million euros starting October 23, comprising over 930,000 euros in passenger funds and 440,000 euros in collateral. On November 2, Netopia unilaterally and without notice terminated the payment processing agreement, leaving the carrier without ticket revenues and forcing flight cancellations.
To keep operating for two weeks despite frozen revenues, Dan Air relied on internal resources, with employees and pilots even paying out of pocket for essential operational expenses such as fuel and airport fees. Company director Matt Ian Davis thanked the staff for their sacrifice, advising affected passengers to seek refunds directly through their travel agencies, file chargeback requests with their credit card companies, or lodge complaints with Romania's National Consumer Protection Authority.
Concurrently, the airline faces a financial dispute with Bacau Airport, which claims Dan Air accumulated a debt of 1.34 million Romanian lei. On October 22, Dan Air filed for insolvency protection to restructure its operations, while the airport filed a separate legal motion to secure debt collection and demand prepayment for future services. Consequently, Dan Air announced on November 4 that it would temporarily transfer all operations from Bacau to Henri Coanda International Airport in Bucharest.
This crisis marks a severe blow for the carrier, which in November 2024 expanded by signing a wet lease agreement with national flag carrier Tarom. Despite ongoing legal proceedings, booking cancellations, and operational hurdles, Dan Air emphasizes that the insolvency filing is intended strictly for corporate reorganization and recovery rather than liquidation, mirroring recent restructuring moves by European carriers such as Spain's Volotea.
