Problems at Kaliningradavia next hurdle to cross (203 words)

Published: 8/15/2001

Encor, the Moscow-based airline formed out of the Chelyabinsk Airlines fleet, is reported to be on the prowl for other bankrupt regional airlines, having secured control of Buryatsky Airlines from the Moscow ZAO Media Group. Media Group is reported to have taken a 50% stake in Encor, in return for the assets of the airline it took out of bankruptcy in May 2000, although Sergey Yashin, General Director of Encor, has said that Media Group stake will be diluted, presumably with additional paper acquisition deals. The path of acquisition is still by no means smooth. One of Encor's potential affiliates, the long troubled Kaliningradavia, which has been under external administration since April 2001, has had its flights over Lithuania ceased due to unpaid air navigation charges of $0.4m. According to Encor, Kaliningradavia represented a potential means for the airline to operate western aircraft without paying duties on imported aircraft, due to the enclave's special status. Encor, has, however, been present at each of the creditors' meetings at Kaliningradavia, according to Commercial Director, Vladislav Tseslyukevitch, and these additional difficulties could assist the formulation of an acceptable deal.

Article ID: 2710