Speculation that troubled airline and Sibir could get a lot closer (360 words)

Published: 1/12/2001

Russian media reports indicate that Vnukovo Airlines plans to transfer some of its routes to Sibir. As of the 15th of January 2001, Sibir will operate VAL's routes to Sochi, Ulan-Ude, Novi Urengoi and 1-2 other northern routes (following VAL's schedules), but with all revenues going to Sibir. Speculation is that the transfer is due to VAL's increasingly poor financial condition and its desperate need for a helping hand. Sibir has suggested that further information may be available next week. The transfer of routes will alarm VAL's many creditors, who have already been shaken by the departure of the airline's General Director, reportedly after disputes with the airline's owners (Russian Aircraft Consortium) over the sale of a large proportion of VAL's aircraft - to a leasing subsidiary, which is controlled by an undisclosed party. Naturally some creditors have regarded this action as being an effort, on the company owners' part, to put assets beyond the their reach - a relatively common practice among Russian corporates. In addition, the RUOP (which investigates organised crime), apparently visited the airline's offices on 4th January, at which time, they interviewed the airline's management on undisclosed matters. This has done little to calm general nervousness and has even led to the suggestion that some creditors have attempted to use the RUOP in an effort to curb the management's transferring tendencies. The spokesman for the GSGA (civil aviation department) Head of Traffic, Stanislav Ovcharenko, reported that the Agency was aware of these reports, but did not believe that such a transfer would take place. He added, rather disingenuously, that such a transfer would benefit the airline, since the two companies already shared General Directors and had discussed a merger in 1999 - closer ties were possible. He reaffirmed that the GSGA's priority were the interests of the airline's passengers and employees. Sibir confirmed a relationship with VAL, but refused to make further comment. Other reports however, have suggested that the airline's General Director Vladislav Filev is in Moscow already discussing arrangements for the relationship between the two airlines. Alexander Klimov, who has assumed the General Director's role at VAL and his usually loquacious press service were unavailable for comment.

Article ID: 2289