Official: Aeroflot can spend up to 1.8 bln rbl to support VIM-Avia

MOSCOW, Oct 2 (PRIME) -- Russia’s largest air carrier Aeroflot can spend up to 1.8 billion rubles to drive home the passengers of troubled VIM-Avia, Deputy Prime Minister Arkady Dvorkovich told reporters on September 30.

VIM-Avia has been delaying a large number of flights since mid-summer, and on September 25, it admitted it had no money to continue its activities and it would have to stop charter flights. The government and Aeroflot issued statements pledging financial support to activities of VIM-Avia. Aeroflot said it will make transactions under orders by the Federal Air Transport Agency.

Dvorkovich said: “There is a limit (on Aeroflot spending orders). Approximately (1.8 billion rubles) but this is the maximum, perhaps less will be needed.” “We need to understand that it (Aeroflot) let’s say, would have paid the money to the budget anyway. So this is not the money Aeroflot would retain, this is not charity. We just decided to use the money for goals that are of a higher priority than the rest.”

Transport Minister Maxim Sokolov said that the 98 million rubles which the government had allocated for the solution of the VIM-Avia issues have not been spent.

“The current activities of (VIM-Avia) are made by cooperation between airports, fuel services and other services: handling and air traffic organizations in Russian and foreign airports, and aviation authorities. It is being handled in various ways but the budget funds allocated from the reserve of the government of the Russian Federation have not been spent, we are using non-budget sources, including those envisaged by the government’s orders,” Sokolov said.

The Transport Ministry estimated the number of Russian tourists trapped abroad due to the failure of VIM-Avia at about 28,500 people as of September 29. Sokolov said that by Monday, the number of tourists must fall to less than 1,000.

Head of the Federal Air Transport Agency Alexander Neradko said that the total accounts payable by VIM-Avia amount to about 10 billion rubles, of which 7 billion rubles of debt to leasing companies, credit organizations, airports and fuel services.

Late September 29, the Basmanny District Court of Moscow ordered house arrest of VIM-Avia CEO Alexander Kochnev until November 25. Chief Accountant Yekaterina Panteleyeva was put under house arrest earlier that day.

Dvorkovich said that the authorities will revise the airline sustainability criteria until the end of 2017.

According to Sokolov, VIM-Avia can lose its air operator certificate in two weeks, after the passenger crisis is solved.

(58.0169 rubles – U.S. $1)

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