Kirghiz National Airline resumes flights, but remains short of fuel

Published: 1/4/2000

Having suspended it flights on 10th December due to fuel shortages, the Kirghiz National Airline resumed flying on the 18th December to eight of its scheduled destinations. According to Valentin Nerodyuk of the airline, the company still owes suppliers of fuel and lubricants $360,000 dollars, a debt exacerbated by the steep rises in fuel prices during 1999. Nerodyuk also emphasized that although the domestic and international flights had been started, the reserves of the fuel would last only 9 days. The management of the airline has approached the government to gain some relief from tax payments to improve its cash flow. Nerodyuk said the airline has accumulated losses of $10 million since 1997, brought about by low load factors and low ticket prices for internal flights. Currently the average internal flight in the republic costs $15, which according to the airline loses them $10 for every ticket issued. When it has adequate fuel, the airline make regular flights to 8 countries, including flights to 12 Russian cities.

Article ID: 1262