Regional suspicion hinders new carrier's efforts to get of the ground in Western Siberia

Published: 11/5/1999

The plans to create a new carrier in the Kemerovo region, after the collapse of plans to unite the two bankrupt regional air carriers in Kemerovo, are encountering considerable resistance from local administration in Kemerovo. Originally, the intention was to merge the region's two bankrupt airlines, Aerokuznetsk and Kemerovo Airlines. The plan, however, failed and resulted in the sale of the assets of Aerokuznetsk to Moscow-based company, Financial Investment Technologies, to cover the outstanding debts. The sale, in August 1999, which yielded between 105-190m rubles, according to reports, has led to charges that the temporary manager of the airline, Victor Belozyorov, sold the assets too cheaply and subsequently became General Manager of a new airline, Aerokuzbass, founded by Financial Investment Technologies (FIT), using the assets of Aerokuznetsk. The remainder of Aerokuznetsk's assets was liquidated by order of the arbitrage court last week. The sale of the assets by tender have not only met with the displeasure of the region, but also the creditors, in the form of Novosibirsk Airlines, Tolmachevo Airport and air traffic control company, Zapsibaeronavigatsiya, who have filed complaints claiming that the assets were undervalued. The arbitrage court, however, has rejected the complaints and it therefore seems likely that the asset sale will stand. For the local authorities, the suspicion is that the FIT vehicle was created to hide the identity of the owner of the new company which, they suspect, is MIKOM, a metallurgical company, currently in dispute with the region and considered to be an 'enemy'. MIKOM has had a long involvement with the bankrupt Aerokuznetsk (www.concise.org 17th September 1999). It seems that the battle is by no means over, with the Kermerovo authorities not allowing them to land at Kemerovo Airport in the short term, on safety grounds, due to the poor condition of the surface. The funding of 50m rubles for a new runway has recently been provided by the region's savings bank but, according to a report in Vremya, the region, as the owner of the airport, will be able to decide who lands there and is unlikely to approve Aerokuzbass. For Aerokuzbass, this exclusion may cause some very serious problems, as one of the prime reasons for the demise of the two regional airlines was the expansion of super regional Sibir. Being unable to access or have restricted access to one of the region's major markets will severely hinder viability.

Article ID: 1051