Bankrupt carrier's auction fails to get proper bids for aircraft

Published: 11/19/1999

The auction of the airline, Sakhaavia in Russia"s Far East, scheduled for 15th November, failed to take place, largely owing to the absence of duly drafted applications and 5% deposits for admission. However, there were bidders for six out of the eight lots declared. Most of the interest centred on the airline"s Il-76s, Tu-154s, and An-12s. The external manager of Sakhaavia, A. Vyaznov, attributed the failure of the auction not surprisingly, to a lack of funds. The fate of the aircraft to be sold remains unclear. Under the regulations of the external administration, there are two options: the first is to reduce the prices of the aircraft under the auction; the second involves the direct sale under a purchase contract, approved by the creditors' committee. It had previously been suggested that Sakhaavia might have been taken under state control. In August, one of its subsidiaries, the regional airport at Ust-Nera, had attempted a rescue mission of its own, by signing contracts with three small airlines and restructuring its workforce (www.concise.org. 25th August 1999).

Article ID: 1103