FSVT grounds north eastern carrier and seizes assets

Published: 1/21/2000

North Eastern Russian airline, Mavial, based in Magadan, has ceased operations after the regional office of the FSVT instructed bailiffs to seize the airlines assets and ordered the airline to stop trading. According to Mikhail Umansky, Director of the FSVT"s North Eastern Department, the closure was due the carrier"s outstanding debts, reported to be a rather paltry 1m rubles ($35,000). The airline"s major creditor, however, is the government that owes Mavial more than 55m rubles for flying government employees and subsidised flights. Umansky"s actions suggest that the only way to resolve the airline"s funding issue is to force a showdown with the regional government, arrange rescheduling of the debt and generate some cash flow for the airline. Mavial"s fleet, last reported to be three Tu-154Bs and five Tu-154Ms, remains grounded. According to reports, hundreds of passengers are now stranded in Moscow, St Petersburg, Krasnodar and Novosibirsk, awaiting flights to this far-flung destination.

Article ID: 1340