Russian court declares Aeroflot subsidiary Donavia bankrupt

A Russian court has declared Aeroflot Airline subsidiary Donavia insolvent following a bankruptcy filing in January when Aeroflot filed on behalf of its two subsidiaries—Orenburg-based Orenair and Rostov-on-Don-based Donavia.

Orenair was declared bankrupt in February 2017.

In November 2011, Aeroflot received shares of five Russian regional carriers—including Orenair, Donavia and Saint Petersburg-based Rossiya Airlines—from Russian state corporation Rostec. In October 2015, Aeroflot announced it would combine the assets of three subsidiaries under the brand Rossiya Airlines. In May 2016, Donavia’s air operator’s certificate was canceled after the assets were combined.

In August 2016, Aeroflot recovered a RUB884 million ($13 million) overdue loan it had granted to Donavia last year.