UTair planning to ask gov't for up to 38.4 bln rubles in state guarantees - CEO
MOSCOW. Feb 24 (Interfax) - The airline OJSC UTair is planning to ask the Russian government for state guarantees of up to 38.4 billion rubles, UTair CEO Andrei Martirosov told reporters on Tuesday.
"There are several variants - between 18 and 40 billion rubles. An order envisions 50% of financial debt - from the maximum possible to the minimum necessary," he said, adding that 18 billion rubles is the minimum necessary amount.
Martirosov also said that 38.4 billion rubles is the maximum amount of state support the company might ask for. He said the Russian government had not yet made a decision. "We're preparing the documentation, but we haven't entirely formulated it yet," Martirosov noted.
Materials previously prepared for a meeting with Deputy Prime Minister Arkady Dvorkovich said that UTair needed 13.5 billion rubles in state guarantees. This figure was an estimate from one of the company's largest lenders. The airline itself had asked for 40 billion rubles in guarantees, sources told Interfax.
UTair has been experiencing financial difficulties due to a drop in demand. In mid-summer, the airline announced it was beginning a program to cut costs, including a reduction in management staff, route optimization and decreased passenger service times.