Turkish carrier Onur Air has been declared bankrupt in a rather unusual manner after a former pilot filed a case against the carrier. Turgut Emre Topçu filed a lawsuit against the company in a case involving unpaid wages. The Turkish airline contests the ruling and will fight the bankruptcy proceedings.

Onur Air bankruptcy case

Onur Air, the troubled low-cost Turkish airline, has been declared bankrupt, although it refutes the ruling. A former pilot initiated proceedings against the struggling airline last year, which have now ended in a bankruptcy filing.

Turgut Emre Topçu filed a case against Onur Air last year regarding a claim of 105,000 Turkish liras ($7,175) in unpaid wages and legal costs. A verdict was reached in favor of the pilot, but the airline did not meet his demands.

Onur Air Airbus A320
The airline ceased all operations last year amid financial difficulties. Photo: Getty Images

In response, Topçu's lawyers filed an insolvency application, which has now led to Onur Air going through bankruptcy proceedings.

The carrier initially rejected the bankruptcy filing, arguing that Topçu was not a creditor of the company. However, an expert opinion overruled this and the court upheld the bankruptcy filing.

Onur Air will continue to contest the ruling and has applied for the bankruptcy to be lifted.

1,600 unpaid employees

Due to its longstanding financial difficulties, Onur Air has around 1,600 employees that have gone without receiving full pay. A large chunk of these employees unionized in November and were granted a collective bargaining agreement by Turkish authorities this year.

A senior figure at Onur Air said,

"We are working hard to solve the problem and we are close to the result. About 1,600 of our employees are still paid insurance premiums. We hope to pay all receivables of our employees in a lump sum."

The airline entered the pandemic already burdened with debt. After it ceased operations in June 2021, employees demanded that their salaries be paid, alleging that they had not been paid since the beginning of the pandemic.

The end of a troubled airline?

Onur Air was once one of the leading airlines in the Turkish aviation industry but has been on the decline in the last several years. The airline was established 30 years ago and grew to boast over 30 aircraft by 2006.

Onur Air A330
Onur Air's last remaining airworthy aircraft were seized by lessors in February. Photo: Nabil Molinari via Flickr

Financial difficulties, exacerbated by the pandemic, led the airline to suspend all operations last year. It was soon stripped of its air operator's certificate (AOC) and license by the Directorate General of Civil Aviation (DGCA) before aviation lessors confiscated its aircraft in February.

A proposed sale to an Iranian buyer fell through after Babek Zencani, the buyer, was sentenced to life imprisonment in Iran. The deal was eventually abandoned but complications ensued, with businessman Hamit Cankut Bağana and the Iranian Petroleum Ministry clashing in legal battles.

Did you ever fly with Onur Air? What are your thoughts on this bankruptcy situation? Let us know in the comments.