Aviation giant bankruptcy: massive debts and extended liquidation
The Russian airline Transaero, which ceased flights in 2015 and accumulated debts of over 1.1 billion euros, remains in insolvency proceedings. The liquidation process has been extended until September 13, 2026.
The aviation industry continues to face significant challenges, with another airline currently caught in a grueling liquidation process. The Russian airline Transaero, which ceased operations back in 2015, is still dealing with insolvency proceedings that have lasted for nearly a decade.
In early August, the Moscow Arbitration Court once again extended the deadline for completing the company's liquidation, setting a new date of September 13, 2026. This decision came despite requests from some of Russia's largest banks to conclude the procedure in order to recover a portion of the outstanding debts.
Transaero was founded in 1991 and previously operated flights to numerous destinations across Russia and the globe, with major hubs in Moscow and Saint Petersburg. The company accumulated debts totaling more than 1.1 billion euros and was officially declared bankrupt in 2017.
An attempt to prevent the company's collapse through a deal with the Russian national carrier Aeroflot proved unsuccessful. Under the planned agreement, Aeroflot was set to acquire 75% of Transaero's shares, but the transaction never materialized.
Even years after the cessation of flights, the liquidation process continues to drag on. According to local reports, the appointed insolvency administrator continues to locate and examine company assets while simultaneously investigating the liability of former managers for the accumulated debts.
The administrator had previously attempted to impose personal liability on former executives for the company's debts, arguing that their actions contributed to the insolvency. The court rejected the claim, citing, among other reasons, the statute of limitations.
The collapse of Transaero occurs against the backdrop of a difficult period for the Russian aviation industry. Reports indicate that by early 2026, at least 30 medium, small, or regional Russian airlines were in insolvency proceedings or nearing such a state due to economic difficulties, sanctions, and high operating costs. Similar airline collapses have been recorded globally this year, including in the USA, Mexico, and Slovenia.
