Tyumenaviatrans sees profit for first 9 months helped by higher load factors and helicopter demand

Published: 11/16/1999

Tyumenavaitrans (TAT), in Northern Russia, has reported revenues from its main activities of 598m rubles($24m)for the first nine months of 1999 and a gross profit of 4.49m rubles - the first in the three years - was offset by the large interest payments due to penalties, leading to an adjusted loss of 85m rubles after an after tax loss of 90,000 rubles. The company has announced that it is now in the second phase of it"s restructuring, whereby its subsidiaries, currently dispersed throughout the Tyumen region, will be centralised to form a consolidated structure, based in Surgut. In the first half of 2000, it intends to streamline costs further and improve financial controls. TAT attributes the improvement in its financial results to decreasing costs,falling by 15% in ruble terms and by 69% in dollar terms; the increased use of it"s helicopters on international markets, and improved seat load factor on intra regional routes, to 65.8% for 9mo99, from 58% in 9mo98. Although the vagaries of Russian accounting make these figures difficult to decipher it is fair to say that Tyumen, struggling at the end of 1998, may be on the road to recovery.

Article ID: 1086