Min orders watchdog to study bailout plan for VIM-Avia

ST. PETERSBURG, Oct 30 (PRIME) -- Russia’s Transport Ministry has ordered the Federal Air Transport Agency to study a bailout plan for troubled airline VIM-Avia proposed by businessman Boris Karlov, Minister Maxim Sokolov told reporters Monday.

“First of all, we gave instructions to the Federal Air Transport Agency to consider these plans and submit its position to the ministry and the government,” Sokolov said.

The agency’s position can be submitted once investors are ready, he said. “Now, there is no such plan yet, there are only talks that this plan has been formed,” he said.

Sokolov also said that VIM-Avia’s air operating certificate could be restored. “According to my information, it has been now suspended. It can (be annulled), but it also can be restored,” he said.

VIM-Avia is currently in a difficult financial situation, with its payables estimated at around 10 billion rubles. The airline had delayed a large number of flights from mid-summer to September 25, when it said it had no money to continue operations and had to stop charter flights. The government and Aeroflot pledged financial support to VIM-Avia.

A source close to the airline’s management earlier said that Karlov, his company Aurora Investments, creditor banks, as well as employees of VIM-Avia’s financial department offered a plan to bail out the airline to the Finance Ministry and the Federal Air Transport Agency. The ministry later confirmed receiving the plan.

(58.0833 rubles – U.S. $1)

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