Bankrupt airline awaits tender outcome to find out if it continues to exist

Published: 9/16/1999

The creditors of Murmansk Airlines (MA) have decided to offer the bankrupt airline for sale at $3m. The Murmansk Regional Property Fund has been given the task to sell the airline, with a reported deadline of one month. The principle shareholder of the airline has been an entity named Financial Industrial Group Russian Aviation or Russian Aviation Consortium (RAC), led by Vnukovo Airlines, but it transferred its 60% holding in MA to the Russian State Property Fund in June 1999, after a long struggle with the regional administration. According to MA's Alexander Taranov, the potential buyers of the airline, which operates a small fleet of four Tu-154s and helicopters, are Norilsk Nickel, a large nickel smelter company, based in Northern Siberia and controlled by metals group, Interos, and St Petersburg-based Pulkovo Airlines. Norilsk is MA's main creditor and, according to Taranov, has worked closely with the Murmansk regional administration against the RAC. It has also confirmed its intention to keep the airline running. Pulkovo is, however, reported to be primarily interested in the cheap fleet of Tu-154s in good condition, which at $3m, would be a good deal.

Article ID: 868