After the second takeover deal of Transaero fell through this week, it appears the end has come for the indebted Russian airline. 

Vladislav Filyov, one of the owners of S7 Airlines was reportedly negotiating a 51% takeover of the airline, only to fall through on Monday. Following Aeroflot’s failed takeover bid in September to prevent it going under, there will not be a third attempt on the airline, which has a debt of over 260 billion ruble (€377 million).

Transaero has seen its major routes been given to Russian national carrier Aeroflot. Analysts say the airline therefore, has very little to offer investors.

Only last year, Transaero was one of Russia’s largest airlines, flying over 13 million passengers to 260 destinations throughout Russia and beyond.

The airline has been heavily hit by the recession and the currency crisis which has lowered the value of the ruble, making travel abroad more expensive for Russians.

Transaero’s revenues have more than halved since 2013, and whilst a small improvement was experienced this year, its huge debt pile cannot be sustained.

The airline’s bankruptcy would lead to the loss of over 11,000 jobs. It is hoped a proportion of these can be absorbed by Aeroflot.