Sibaviatrans extends agreement with Murmansk Aviation Company (350 words)

Published: 1/3/2001

In late December, Alexander Tarantov, interim manager of the bankrupt Murmansk Airlines, flew to Moscow to negotiate for additional financing from the company's creditors committee, with RAO Norilsk Nikel. According to local media, the airline requires funding to recover VAT payments of 14.5m roubles from the federal tax authorities. If the negotiations with the tax authorities are successful, Norilsk will be repaid. Additional payments will be made to fifth level creditors. The tax police dispute the airline's claim, which means that recovering the money will not be easy. For Norilsk Nikel, supporting the claim may be its only reasonable option given its debt exposure to the bankrupt airline. Meanwhile OAO Sibaviatrans have concluded a strategic partnership with the OOO Murmansk Aviation Company (MAC), thereby extending its existing activities in the region, where it operates part of the MAC operations using the routes and aircraft of Murmansk Airlines. Initially, MAC (owned by the Norilsk Nickel subsidiary, Severonikel and created to acquire the assets of Murmansk Airlines) was keen to find a buyer for the company. After discussions with Pulkovo Airlines collapsed in March of 2000, however, it became clear that no buyer would acquire the Tu-154s as part of the package. Vladimir Guzov, the Director of the Sibaviatrans's affiliate in Murmansk, stated that his company was only interested in the lease of the small aviation of the region and had no interest in the unprofitable Tu-154s. The remaining aircraft are apparently of interest to Tyumenaviatrans. The Sibaviatran's Murmansk affiliate opened for business in summer 2000, and has been assessing the MAC's small aviation fleet since then. In November, Sibaviatrans signed an agreement to lease three An-2s, Mi-8s (only one of which is serviceable), and two Mi-2s. Under the agreement, Sibaviatrans has to overhaul the grounded helicopters. Sibaviatrans, says Guzov, does have plans to lease four more Ka-32s to cope with increased traffic in spring. Sibaviatrans, currently, operates a 40 aircraft fleet of which 40% is leased from other airlines. In 1999, the airline generated revenue of 300m roubles by carrying over 1m passengers. Murmansk airport serviced approx. 200,000 passengers during the same period.

Article ID: 2269