Airline that filed for bankruptcy selling off parts

The airline sold its last full plane earlier this year.

May 14, 2025 - 21:30

Airline that filed for bankruptcy selling off parts

While the most high-profile aviation bankruptcy in the last year has been that of Spirit Airlines (SAVE) (the budget Florida airline emerged from it by handing over control to its biggest bondholders), a number of other small airlines have struggled under a market of recession fears and low consumer sentiment.

Fellow Florida low-cost carrier Silver Airways just received a $5.775 million stalking horse bid after struggling to find an investor to take on its heavy debt load, while budget airline Voepass filed for bankruptcy protection in Brazilian courts in April 2025. After losing its license to fly amid regulator concerns following a 2024 crash, Voepass racked up debts of over 209.2 million Brazilian reais (approximately $36.78 million USD).

On the European continent, Montenegro Airlines is even more down on its luck, as a bankruptcy judge ordered it to liquidate any parts of its Fokker and Embraer (ERJ) planes that can be sold.

Don't miss the move: Subscribe to TheStreet's free daily newsletter

Onetime flagship carrier Montenegro Airlines to sell off its last plane parts

Launched in 1994, the airline had been the flagship carrier for the small Balkan nation of just under 617,000 people until it filed for bankruptcy in April 2021. At the time, Montenegro Airlines had accrued debts of over €11.9 million.

As reported by local Montenegrin news outlets, representatives for the defunct airline have agreed to hold an auction to sell off Fokker parts at a starting price of €775,000 and Embraer parts at a starting bid of €577,000. Bidders will be able to make higher offers until June 2.

In March 2025, U.S. businessman of Montenegrin origin Bojan Dragas purchased the last full plane that remained in the fleet, a Fokker 100, with the plan to turn the fuselage into a restaurant.

'This aircraft gave us a significant advantage': former CEO

"This aircraft gave us a significant advantage over Jat Airways [the flagship carrier of the former Yugoslavia that was taken over by Serbia when the country split], as in 2003 and 2004, Montenegro Airlines carried 65% of the passenger traffic on flights between Montenegro and Belgrade, despite Jat operating nine Boeings (BA) ," former Montenegro Airlines CEO Zoran Djurisic said when looking to find a buyer for the plane last winter.

Prior to the sale that took place the following March, Montenegro Airlines sold three other F100 aircraft: one to Serbian parts lender Hashtag for €145,000 euros, one to Dutch aircraft lender Airline Fleet Support for €85,000, and a third to Kenyan carrier Skyward Express.

More on retail and bankruptcy:

The parts selloff is a last-ditch effort to recoup some of the losses to part makers and creditors that Montenegro Airlines amassed before filing for bankruptcy. After the then-flagship carrier was forced to shut down, the government of Montenegro transferred over two Embraer 195 planes to launch a new airline that it named Air Montenegro.

The rest of Monenegro Airlines' assets were ordered to be liquidated by a local bankruptcy judge — a process that had been underway since 2021. Meanwhile, the rebranded Air Montenegro is set to start running new routes to countries like Czechia, France, Azerbaijan, and Armenia in May and June 2025.