UTair (UT, Khanty-Mansiysk) is set to secure RUB19 billion (USD335 million) in guarantees from the Russian government Minister of Economic Development Alexei Ulyukaev has announced. The struggling UTair Aviation Group had originally applied for RUB40 billion (USD696 million) in funding late last year though this figure was rejected by the Kremlin.
The funds will go towards debt restructuring including the settlement of outstanding dues owed to banks, aircraft lessors, aviation fuel suppliers, as well as MRO and airport fees. Since late last year, creditors have stepped up their claims with Avialeasing, Alfa Bank, and lessor UGRA SPb among the largest claimants to have filed bankruptcy petitions against UTair.
Other entities being considered as part of a RUB40 billion (USD723 million) guarantee include Ural Airlines (U6, Ekaterinburg) and manufacturer Sukhoi Civil Aircraft (Zhukovsky).
UTair Aviation, which also includes Katekavia (Sharypovo), UTair Helicopter Services, UTair-Cargo (Tyumen Roschino), UTair-Express (Syktyvkar), UTair-Ukraine (Kyiv Boryspil), Vostok Airlines (Khabarovsk Novy), and Turuhan Airlines, last week announced it had cut its fleet from 115 machines to 71, producing USD100 million in annual savings. According to CEO Andrei Martirosov, the move was necessary to offset the fall in demand for travel as well as a sharp increase in the cost of lease payments brought on by the weakened Russian Rouble.
As it stands, six B737-800s, twelve A321-200s, and fifteen CRJ200s have been returned to their respective lessors while nine B757-200s have been moved to Katekavia's Azur Air (ZF, Krasnoyarsk Yemelyanovo) charter division. The Group also plans to cut 39 helicopters from its UTair Helicopter Services (UTH, Nefteyugansk) subsidiary's fleet of 182 and to reduce charter flights threefold.
