Russia’s biggest private airline files for bankruptcy

Russian prime minister allows Transaero to go under
After negotiations over the sale Russia’s biggest private airline to publically owned Aeroflot fell through this week, Russian Prime Minister Dmitry Medvedev has given the go-ahead for bankruptcy proceedings to begin at Transaero.
“The process has taken the toughest turn,” press reports quote a federal official as saying. “The bankruptcy will proceed according to Russian law.”
Transaero has stopped all ticket sales. The technical details of the bankruptcy are now being worked out, the source said.
“There are two considerations: first, who will inherit Transaero’s [estimated $4 billion] debts and how much of them; second, how it will affect the airline’s smaller creditors, the passengers and airline employees.”