November 20, 2017, 00:40 / Business

Rosaviatsia was not satisfied with the rescue plan for VIM-avia

Karlov’s plan is a declaration, there are no real investors, said Transport Minister Maxim Sokolov Alexandra Terentyeva Vitaly Petlevoy

Rosaviation suspended the operator's certificate of VIM-avia at the end of October / Maxim Stulov / Vedomosti

The Federal Air Transport Agency gave a negative opinion on the plan to rescue VIM-avia of businessman Boris Karlov, said Transport Minister Maxim Sokolov: “This is rather not a plan, but some kind of declarations that are not based on real calculated financial models, investment proposals, issues of solving social problems” ( quote from RIA Novosti). A representative of the Federal Air Transport Agency declined to comment.

“We regularly inform the Ministry of Transport and the Federal Air Transport Agency about the progress of our negotiations, approaches to solving social problems and the main parameters of the new airline. Consultations have been held with representatives of the regulator, and meetings are planned to discuss the business model in detail. The situation is dynamic, and it is too early to draw conclusions,” Karlov said through a representative.

Karlov, managing director of the Aurora Investments fund, proposed a rescue plan for VIM-Avia: reduce the airline’s fleet, focusing on flights to the Far East, Central Asia and China. Most of the debts - 90% of 12 billion rubles. (taking into account the debt to leasing companies) - needs to be written off, “since it is impossible to return them, given the suspension of flights,” says a source close to the management of VIM-avia.

Boris Karlov's Aurora Investments Fund proposes a rescue plan for VIM-avia

Business / Transportation

Creditor banks will be able to enter the capital of the new airline in order to be able to return the money through the growth in the value of the new business, says a source close to the airline. Investments to launch the company are estimated at 3 billion rubles; they can be repaid in 5–6 years. Rosaviatsia suspended the operator's certificate of VIM-avia at the end of October; after three months it could be revoked. During this time, the airline must work out a rescue plan in detail. The largest creditors of VIM-avia are Zenit Bank and Absolut Bank. They could not be reached for comment over the weekend.

“I personally might be interested in any complex transaction that can bring profit (not necessarily in the aviation industry), which few in Russia will undertake, and the rest will say that it is impossible,” Karlov noted. His program is not very realistic, believes leading ACRA analyst Alexander Gushchin: “Even if you restart VIM-avia, you will have to work with the brand, but since the current one has already discredited itself, it is easier to create a company from scratch, however, now there is no way to do this best moment." There are many free seats at the market, there are no queues for tickets, added Infomost CEO Boris Rybak.

How did the collapse of VIM-avia begin?

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Passengers of delayed VIM-Avia flights despaired of flying out of Domodedovo airport. From September 26, Vim-Avia stopped sending passengers abroad

/ Maxim Stulov / Vedomosti