Russia’s second largest airline, Transaero is collapsing under the weigh of pressure from its creditors. 

Lawsuits to the value of 250 billion rubles, (€3.52 billion) are being filed against the airline following the pull out of a takeover by Russia’s largest airline, Aeroflot.

The companies largest creditor, VTB Bank is planning to lodge a bankruptcy suit following the news that Alfa-Bank filed one at the Arbitration Court in St Petersburg on Monday. Sberbank have also filed a bankrupcy lawsuit on Transaero.

Airline industry website, Flight Global states that Transaero flights will be grounded on 26th October.

Hopes with S7 Takeover

There may still be some hope for the airline over the coming days with airline, S7 buying 51% of the company shares yesterday.

The news led to shares in Transaero shares rising to 19.5 rubles almost instantly, representing triple their value.

Whilst Moscow is determined to at least see an orderly breakup of the airline, insuring the jobs of its 11,000 employees are saved, the possibility of it crumbling still remains.