One of the last of Western Siberia's independent airlines is sold to cover debts

Published: 9/17/1999

One of the last of Western Siberia's dwindling number of independent airlines has had its assets sold to Moscow based company, Financial Investment Technologies, in order to cover its debts. Aerokuznetsk was formed in 1993 as a joint stock company emerging from its predecessor, Novokuzntsko Avia, a state enterprise, and its sale follows 18 months of external administration under Russian bankruptcy law. The sale includes the Kemerovskaya company's real estate holdings comprising its airport, maintenance base and refuelling facility, in addition to what remains of the airline's fleet which, when last reported, was made up of 9 Tu-154s, 5 An-26, 4 An-24s and a mixed fleet of 19 helicopters. The sale proceeds will not cover the outstanding debt of 190m rubles, according to local sources, but reports suggest that the value of the business has been considerably improved during the administration, through the efforts of the manager appointed under the external administration, Victor Belozyorov, (also currently temporary manager of other Western Siberian airline in administration, Kermova Airlines). Belozyorov has endeavoured to improve the attractiveness of the airline to potential buyers by undertaking a number of measures. He has restored four of the nine Tu-154s, leasing one of them to an Iranian carrier on wet lease, so earning valuable hard currency. He has also paid much of the wage arrears and attempted to lease more modern aircraft for the struggling airline. His efforts have so impressed the successful buyers of the airline that he has been invited to run the new vehicle to take over the airline, renamed Aerokuzbass and controlled by the Moscow based company, Financial Investment Technologies (FIT). FIT which, according to Local media reports, is a vehicle created for the purchase, does not reveal w its actual owners. There appears to be no link between the new owners and MIKOM (Metallurgical Investment Company) who, in the past, have been both lenders to the company and have been mentioned as a possible buyer. Belozyorov, when directly questioned about his new employers, focuses on the new operating company and claims that the tender was above board and had been coordinated with the regional authorities. Given the opposition of Governor Aman Tuleyev to the creation of a Siberian monopoly by Sibir, it seems unlikely that the buyer is simply a front for Sibir. Sibir has, however, been the main reason for the demise of many of the region's airlines, including Aerokuznetsk. Many of the airlines, dominated by their local regional governments and led by managements unable to adapt to the new air transport market, have been simply absorbed into the Sibir fleet, utilizing their good aircraft to service their former routes. Andrey Savchenko of FIT has assured the local authorities and the Aerokuznetsk staff that the new owners will preserve both the operations of the company and its jobs. The airline intends to develop its regional services and cover the whole of the Kermovo region.

Article ID: 876