Published: 6/19/1998

On 23 May, Sakha Airlines began using an Airbus A310 with 192 seats in a three-class layouton the scheduled service from its hub in Yakutsk to Moscow's Sheremetievo-1 airport. In June, the company plans A310 flights to Pulkovo (St.Petersburg). Sakha-Avia says it chose the PW4000-powered A310 as the most suitable foreign wide-body airliner for use in the harsh environment of Sakha-Yakutia republic located in northen Russia. In the meantime, the Government of the republic has expressed an intention to initiate a bankruptcy procedure for Sakhaavia, the national flag-carrier. Reportedly, this decision was taken after a working group investigating the financial situation at Sakhaavia had found the leadership of the company unable to overcome the financial crisis without outside support. The Nasha Gazeta local newspaper wrote that the creditor debts of Sakhaavia in April 1998 were in excess of Rbs1,200m, while the debtor debts were Rbs115m. The Sakha government believes that the bankruptcy procedure will not lead to drastic cuts in the 3500-strong workforce of the airline - only 530 employees are expected to be made redundant. (AL698.2) (VK)

Article ID: 199