In the long-running legal battle over the fate of Onur Air, once a leading Turkish private airline, an unexpected decision has been reached that reopens the entire case. The High Court of Turkey has overturned a first-instance insolvency ruling from November 2025 and referred the case back to the competent district court in Bakırköy for retrial. This temporarily halts the liquidation process, which was intended to seal the fate of the company founded in 1992.
The decision by the 17th Civil Chamber has caused considerable consternation in the Turkish aviation industry, as it heralds a renewed period of legal uncertainty for creditors, former employees, and management. While the overturning of the ruling formally provides the company with a reprieve, the economic reality of the airline, which has not operated any flights for years, remains precarious. The case is considered unprecedented in recent Turkish legal history, as it illustrates the complex interplay between private-law wage claims and state oversight of air transport.
Legal setback for the liquidation proceedings
The appeals court's recent ruling marks a turning point in a case that originated back in 2022. At that time, the company first came under pressure following a lawsuit filed by a former pilot seeking unpaid wages. What began as an individual labor dispute quickly escalated into a full-scale insolvency proceeding. In November 2025, the Bakırköy 2nd Civil and Commercial Court declared the company officially insolvent and ordered the liquidation of its remaining assets. This decision has now been overturned by the next higher court, which identified formal and substantive flaws in the assessment of the company's solvency.
The remand to the district court means that the entire evidentiary hearing must be restarted. The court will now have to re-examine whether the conditions for insolvency were indeed fully met at the time the application was filed. For Onur Air, this is a partial victory, as the immediate dismantling of the company has been halted. At the same time, however, the court warns against misinterpreting this reversal as an acquittal or as an end to the financial woes. It is a procedural correction that leaves the outcome of the case completely open once again.
The dramatic fall of an industry pioneer
To understand the implications of the current decision, it is essential to look at Onur Air's history. Founded in 1992, the airline was considered a pioneer of private aviation in Turkey for decades. With a fleet that at times comprised over 30 aircraft, the company served both a dense domestic network and numerous international destinations via charter and scheduled flights. More than 90 million passengers were transported throughout the company's history, which played a significant role in making air travel affordable for broad segments of the Turkish population.
The decline began gradually and was massively accelerated by the global turmoil of 2020 and 2021. While competitors were propped up by state aid or capital increases, Onur Air spiraled into debt and grounding. By the end of 2021, the Turkish Directorate General of Civil Aviation (SHGM) had revoked the company's Air Operator Certificate (AOC) because it could no longer meet essential safety and financial criteria. Subsequently, leasing companies seized the remaining aircraft, effectively rendering operations impossible. Since mid-2022, not a single aircraft belonging to the airline has left the ground.
Social consequences and employee demands
A key aspect of the proceedings is the precarious situation of the former workforce. An estimated 1.800 former employees, including pilots, cabin crew, and ground staff, have been waiting for years for their outstanding wages and severance payments. Many of these claims date back to 2020. The affected employees had repeatedly complained through government platforms like Cimer and attempted to enforce their rights. The now-terminated insolvency proceedings were intended to pave the way for an orderly liquidation of the remaining assets in order to satisfy at least some of these claims.
The reversal of the verdict now casts these hopes into question, at least for the time being. As long as there is no legally binding insolvency ruling, the liquidation administrator cannot access the company's remaining accounts or real estate to make payments. The employees' legal representatives are concerned that this further delay could result in hardly any assets remaining at the end of the process. On the other hand, a reassessment of the case could theoretically also facilitate the search for a new investor – a scenario that Onur Air's management has been advocating for years without tangible results.
Market economy implications for Turkish aviation
The legal turmoil surrounding Onur Air also sheds light on the structure of the Turkish air transport market. While state-owned carriers and large, partially privately held companies like Turkish Airlines and Pegasus Airlines have massively expanded their market share after the pandemic, the Onur Air case highlights the risks for medium-sized players. Rising operating costs, combined with high inflation and a devaluation of the national currency, have undermined the financial foundation for smaller providers without substantial capital reserves.
The renewed court proceedings will also have to clarify the extent to which the airline's management can be held responsible for its financial difficulties. Following the insolvency application in 2025, a complete review of all financial transactions from the preceding five years was ordered. This review will now continue as part of the new district court proceedings. Industry experts are closely monitoring whether the courts will apply stricter standards to the management's disclosure obligations in the new proceedings.
Uncertain future and next steps
What happens next? The case will be referred back to the 2nd Civil and Commercial Court of Bakırköy, where a new series of hearings will take place in the coming months. This phase will primarily focus on obtaining updated expert opinions on the company's value and debt ratio. The reversal by the 17th Civil Chamber of the High Court legally means a return to the status quo ante. The airline still exists on paper as a company, but it lacks a valid license and any active aircraft.
For the Turkish judiciary, the proceedings are a test of endurance. Balancing the interests of creditors with the company's formal legal claims is a delicate matter. The appeals court's decision demonstrates the high hurdles to a final liquidation of a long-established company. Nevertheless, the likelihood of Onur Air returning to active flight operations remains extremely low. Rather, it is expected that the new proceedings will merely serve to ensure the distribution of the remaining assets is legally unassailable. The coming months will reveal whether Onur Air will ultimately find an orderly resolution or whether the legal stalemate will continue.