UPDATE: Tour Operators Association asks govt for help in VIM-Avia crisis

(Adds details in last two paragraphs)

MOSCOW, Sep 26 (PRIME) -- The Association of Tour Operators of Russia (ATOR) has asked the government to interfere and help solve the situation with insolvency of troubled airline VIM-Avia, the association said in a statement on Tuesday.

The airline has been delaying a massive amount of its flights since mid-summer, and on Monday it admitted it had no money to continue flights and it would have to stop charter flights. The Investigative Committee launched a criminal case against the airline charging its managers with stealing money of passengers. The Prosecutor General’s Office launched an inspection of the airline previously.

ATOR said that preliminary estimates show that VIM-Avia had undertaken obligations to carry 200,000 passengers until the end of the summer season, including 100,000 Russian tourists. “Suspension of activity of the airline will stop these flights, which will lead to collapse of the touristic and aviation markets and will in turn inflict significant reputational damage on the government and companies of the touristic market and end up in widespread discontent among citizens,” the statement read.

Tour operators will be unable to return so many tourists to Russia, as they have already paid for all VIM-Avia’s charter programs and cannot find at least U.S. $10 million more to pay for the flights for a second time, the association said.

ATOR sent a letter to Deputy Prime Minister Vitaly Mutko asking the government to interfere in the situation in order to avoid a crisis on the touristic market. The association is also ready to help to work out measures to prevent these situations in the future.

The Federal Tourism Agency said in a statement that it had set up an emergency operation center for bringing clients of VIM-Avia back to Russia. But the agency will be unable to use the money of the tourist support association Tourpomoshch created to help people if tour operators fail to fulfill their liabilities, as only the airline is responsible for the current situation.

Head of the agency Oleg Safonov told PRIME that VIM-Avia’s charter flights suspension hurt many tour operators, including Intourist, TUI, Mouzenidis Travel, Coral Travel, and others. The agency plans to calculate the exact figure on the affected tourists later on Monday.

It is unclear how authorities plan to bring Russian tourists back home, he added.

End