Turkish Aviation Giant Onur Air Officially Bankrupt

Onur Air, one of Turkey’s largest private airlines, has officially entered bankruptcy proceedings after failing to secure emergency financing or a buyer amid mounting debt and operational grounding, Turkish court records confirm.

The Istanbul 3rd Commercial Court of First Instance ruled on April 18, 2026, to initiate insolvency proceedings against Onur Havayolları Taşımacılık A.Ş., the legal entity behind the Onur Air brand, following a petition filed by the company’s creditors. The ruling marks the formal conclusion of a prolonged financial collapse that began in late 2023 when the airline suspended all flights due to liquidity shortages.

According to the court filing reviewed by News Directory 3, Onur Air’s total liabilities exceed 12.4 billion Turkish lira (approximately $340 million USD at current exchange rates), with over 8.1 billion lira owed to aircraft lessors, fuel suppliers, and airport authorities. The airline’s remaining assets, primarily grounded aircraft and spare parts, are valued at less than 2.3 billion lira, leaving a significant shortfall for creditors.

The airline ceased all commercial operations in November 2023 after failing to pay lease obligations for its Airbus A320 and A321 fleet. At its peak, Onur Air operated a fleet of 22 aircraft serving over 30 domestic and international destinations, including routes to Germany, Saudi Arabia, and Northern Cyprus. Since grounding, the company has remained in administrative limbo, with multiple failed attempts at restructuring or sale.

In early 2024, the Turkish Civil Aviation Authority (SHGM) revoked Onur Air’s operating license due to safety and financial compliance violations. Subsequent efforts to secure a bridge loan from state-backed institutions or attract interest from regional carriers, including Pegasus Airlines and AnadoluJet, did not materialize. Creditors, led by aircraft lessor AerCap and Turkish fuel distributor Opet, filed the insolvency petition in January 2025 after repeated defaults on payment schedules.

“The court’s decision reflects the irreversible deterioration of Onur Air’s financial position despite extended negotiation periods,” said a spokesperson for the Istanbul Chamber of Commerce, which monitored the proceedings. “Creditors have exhausted all avenues for consensual resolution, and liquidation is now the only viable path forward.”

The bankruptcy process will be overseen by a court-appointed trustee, who will inventory assets, validate creditor claims, and oversee the sale of remaining property. Aircraft currently stored at Istanbul Sabiha Gökçen and Ankara Esenboğa airports are expected to be auctioned separately, with proceeds distributed according to creditor priority under Turkish insolvency law.

Employees of Onur Air, numbering approximately 1,800 at the time of grounding, have not received salaries since late 2023. The airline’s trade union, Türk Hava-İş, has filed separate claims for unpaid wages and severance, which will be processed alongside other creditor claims in the insolvency estate.

Analysts note that Onur Air’s collapse underscores broader pressures on Turkey’s private aviation sector, including currency volatility, high fuel costs, and intense competition from state-backed carriers like Turkish Airlines and rapidly expanding low-cost rivals. While no systemic risk to national air travel is anticipated, the case serves as a cautionary example of the financial fragility faced by mid-sized airlines in emerging markets without strong state support or diversified revenue streams.

As of the court’s ruling, Onur Air remains listed on the Istanbul Stock Exchange under the ticker ONURA, though trading has been suspended since 2023. The insolvency process will likely trigger delisting procedures in accordance with Borsa Istanbul regulations. No further updates on potential restructuring or revival efforts have been issued by the airline’s management or major shareholders.