newstodate.aero
Oct 20, 2009 (newstodate): Russia's aviation agency Aviatsii has reportedly ordered 11 airlines to deliver detailed reports on their operational situation, financial health and plans for future development.
The move is seen as a further sign of deep problems within the country's civil aviation where the demise of the AiRUnion was later followed by other bankruptcies including KD Avia.
If the airlines do not respond with satisfactory reports, the agency may consider withdrawing their AOCs in order to preclude further collapses in the industry.
Estimates are that between 20 and 30 percent of Russia's airlines currently are only surviving thanks to creditors' leniency and special financial arrangements that will not endure, and eventually up to one-third of all existing Russian airlines may go bust in the near future, sources say.
The move is seen as a further sign of deep problems within the country's civil aviation where the demise of the AiRUnion was later followed by other bankruptcies including KD Avia.
If the airlines do not respond with satisfactory reports, the agency may consider withdrawing their AOCs in order to preclude further collapses in the industry.
Estimates are that between 20 and 30 percent of Russia's airlines currently are only surviving thanks to creditors' leniency and special financial arrangements that will not endure, and eventually up to one-third of all existing Russian airlines may go bust in the near future, sources say.