Novokuznetsk based company stages remarkable turnaround (341 words)

Published: 2/14/2001

Aerokuzbass (formerly, Aerokuznetsk), which is based in Novokuznetsk, has managed to get itself out of bankruptcy without funding from local or regional authorities in under a year. In 1999, the bankrupt company was taken over by a shadowy Moscow-based entity called Financial Investment Technologies, sold by its temporary manager, Victor Belozyorov, and underwent a change of name to its present Aerokuzbass. As General Director, Belozyorov began to engineer the airline's recovery out of bankruptcy. The airline has honoured its wage arrears to 1,000 employees amounting to 22m rubles, including 3m rubles compensation for “health damage”. In terms of current wages, the airline has also raised salaries nearly three-fold. An airline employee's average monthly income is now 2600 rubles. The concern for the airline, as with many smaller airlines in the region, is that its fate now lies with the West Siberian office of the GSGA and its head, Vladimir Tasun (who is due to renew the airline's operating license on 26th March). Given the current GSGA policy to shrink Russia's 300 airlines, the management is concerned that despite the airline's five Tu-154s and its overhaul facility, it may not be considered significantly large enough. This is a valid concern. After all, super-regional Siber (on whose board Tasun sits) has only to apply pressure against the airline with which it competes on the Kemerovo and Novokuznetskroutes - the latter being inherited by Sibir after the suspension of Aerokuznetsk, early in 2000, due to its poor financial condition.

Article ID: 2358