Krasair denies reports of breakdown in Tu-204 contract and accuses sources of trying to undermine both airline and regional government

Published: 1/13/2000

Krasair has denied reports that it does not have the funding in place to pay for the delivery of two Tu-204s and have accused sources “unfriendly to the regional government” of placing the story to undermine it, together with the regional government, led by Alexander Lebed. In particular, Moscow newspaper, Segodnya, was singled out for printing the story. According to Krasair, a letter has been sent by Boris Abramovich, the airline's Director General, demanding an opportunity to respond. Krasair says it is continuing with the Tu-204 purchases and adds that, while it has signed an option for ten Tu-204s, it was never intended that these aircraft would be acquired and paid for in one stage. The first purchase, according to Krasair, is near completion with the delivery of the first Tu-204 expected this March or April. This is later than reports in July 1999, when the deal was first signed, which referred to the first delivery being in 1999. The planned delivery of the second aircraft in the initial contract is in the last quarter of 2000. After the delivery of the first aircraft, the airline says that it will use the revenues from its operation to fund the third and, when the second is operation, it will fund the fourth. The initial funding for the project will come from the airline's own resources, combined with loans and a materials barter package. The airline said that the regional government continued to support the project, although it would not give specific details. It also stated that Krasnoyarsk Aluminium was still interested in participating in the project and that Alex Baranzev , the plant's Director General had confirmed this at a press conference held on 30th December.

Article ID: 1313