KRASNOYARSK, July 6 (RIA Novosti) - An East Siberian court of arbitration upheld on Monday an aircraft leasing company's bankruptcy petition against KrasAir, one of Russia's largest airlines, a court spokeswoman said.

The Ilyushin Finance aircraft leasing company filed the petition against KrasAir at the Krasnoyarsk Territory's court of arbitration over the airline's debt of 92 million rubles ($2.9 million) for the rental of three planes. Although the court started to consider the petition last August, hearings have been repeatedly postponed.

"Today the court declared the KrasAir airline bankrupt and bankruptcy proceedings have already been initiated," Valentina Bezrukikh said.

KrasAir spokeswoman Lyudmila Ganzhurova earlier played down the company's debt, saying it was "about 60 million rubles ($1.9 million)."

KrasAir, part of the crisis-hit AirUnion alliance, ceased operations last October over a liquidity crisis. The company has about 2,500 employees and wage arrears estimated at 340 million rubles ($10 million).

Local officials said in late May that 60 million rubles ($2 million) in wage arrears had been paid into the bankrupt company's account.