CargoLogic Germany (GCL, Leipzig/Halle) applied for insolvency restructuring on May 10, nearly two months after it was banned from operating in German airspace due to its alleged links to Russian Volga-Dnepr Group.
The District Court of Leipzig has appointed Lucas Flöther as the provisional administrator. He has ample experience with distressed airlines, having overseen the insolvencies of Air Berlin (1991), Niki (Austria), Condor, and SundAir.
"We are checking whether it is possible to resume flight operations as quickly as possible, taking into account the sanctions. German insolvency law offers suitable options here," Flöther said in a statement to the German media.
A restart would most likely require new investors, as CargoLogic Germany's current ownership is the reason for its insolvency. The German civil aviation authority (Luftfahrt Bundesamt - LBA) banned the carrier from operating in the country's airspace on March 11, 2022, under the framework of sanctions targeting the Russian aviation industry. The decision effectively grounded the airline, which lost all revenue while still facing leases and staff costs among other recurring expenditure.
The LBA indicated that CargoLogic Germany was linked to the Volga-Dnepr Group and thus should not be allowed to fly in the EU. The airline tried to appeal the decision, arguing that it was based in Germany, employing local staff, and wholly-owned by UK-registered CargoLogic Holding Ltd., the parent of CargoLogicAir. CargoLogic Holding, in turn, is not directly owned by the Russian group but rather personally by its president, Alexey Isaykin, who is a dual Russian and Cypriot citizen.
In the statement announcing the insolvency, Flöther confirmed that the airline was, after all, owned by a Russian national.
Despite the airspace ban, CargoLogic Germany has retained a valid German Air Operator's Certificate (AOC), which could facilitate a quick restart under new ownership.
"The company had a solid order backlog and was well-known to its customer base. These are important prerequisites for a successful restructuring," Flöther said.
CargoLogic Germany operates four B737-400(SF)s leased from Vx Capital Partners, the ch-aviation fleets module shows. The aircraft are currently parked, at each of Budapest, Helsinki Vantaa, Katowice Pyrzowice, and Ostrava airports.
