Russian Defense Ministry’s Airline on the Brink of Bankruptcy, – Media

The company was left with only one aircraft, and its workforce had been reduced fivefold.

The aviation company “Cosmos”, which belongs to the Russian Defense Ministry, is on the verge of bankruptcy . As reported by The Moscow Times , the airline “Cosmos” has encountered serious financial problems.

“As Kommersant has found out, the carrier, which was previously part of Roscosmos, has officially applied to Rosaviatsia with a request to suspend its operator certificate,” the publication says.

Currently, the company has only one aircraft left, and the number of personnel has been reduced by about five times.

It is noted that the main shareholder has stopped financing, and the tax service has already initiated a lawsuit to declare the airline bankrupt.

Sources with whom journalists spoke are skeptical about the chances of saving the carrier, despite its licenses and experience.

According to Rosaviatsiya, the operator’s certificate was suspended on February 20 at the company’s own initiative. According to FAP-10 (Federal Aviation Rules), Kosmos has 270 days to restore it, but to do so, it must avoid the introduction of external management.

Meanwhile, in November 2024, the Federal Tax Service filed a lawsuit in the Moscow Arbitration Court to declare the airline bankrupt. The Special Flight Squad of the Ministry of Defense also joined the case. The next court hearing on this issue is scheduled for March 19.

External management is one of the procedures used in the bankruptcy of an enterprise. It is introduced when the court decides that the company can still restore its solvency. In this case, management is transferred to an external manager, who receives broad powers to change the debt structure, sell property and find ways out of the crisis.

In the context of Cosmos Airlines, if external management is introduced, this could mean the complete removal of the current management from decision-making, a possible sale of assets to pay off debt, and a high probability of liquidation of the company if it cannot be restored.

According to the law, to avoid external management, Kosmos must find financing, pay off debts or prove that it can continue operating without court intervention. If this does not happen, the company may be declared bankrupt and subsequently liquidated.

(C)UNIAN 2025