French carrier Aigle Azur has filed for bankruptcy, but will continue to operate flights during a "period of observation".
The Paris Orly-based airline says it was placed in receivership on 2 September, under a judicial administrator, and that court bankruptcy proceedings having been initiated.
Previously, on 27 August, the carrier had been put under the control of a temporary administrator at the request of the carrier's president, Frantz Yvelin. That came after what the company describes as a "totally ugly" situation in which a minority shareholder attempted to take control of the business.
Several media outlets have reported that French businessman Gerard Houa – who controls around 20% of Aigle Azur via Luxembourg-based entity Lu Azur – tried to install himself at the airline's helm.
Aigle Azur says it has filed a complaint over this move, which was rejected by 80% of shareholders.
China's HNA Group is the airline's largest shareholder with a 48% stake, while airline investor David Neeleman owns 32%.
Flights by Aigle Azur have been "assured" during a "period of observation", the airline says.
Its core operation comprises flights between France and Algeria. Cirium schedules data shows that Aigle Azur operates from Paris Orly, Lille, Lyon, Marseille, Mulhouse and Toulouse, and serves Algiers, Bejaia, Constantine,Oran, Setif and Tlemcen. Additionally, the carrier flies to Beirut, Kiev, Moscow, Faro, Porto, Funchal, Bamako, and Sao Paulo.
However, the airline's website notes that the flights to Sao Paulo will be suspended after 27 September.
Cirium fleets data shows that Aigle Azur has seven CFM International CFM56-5B-powered Airbus A320s, two A330-200s with Pratt & Whitney PW4168 engines, and a Boeing 737-400.
The 737 is subleased from Lithuanian ACMI operator GetJet Airlines.
Aigle Azur's entire Airbus fleet is leased – the two A330s are managed by AerCap, while the A320s come from GECAS (three), Avolon (two), Aircastle (one) and Castlelake (one).
The A320s are aged between six and 16 years.