Transaero Airlines (Moscow Vnukovo) has announced it has agreed the terms of a RUB45billion (USD1.097billion) syndicated, longterm loan with Russia's Sberbank. The bank had previously extended the carrier a non-revolving credit line of RUB800mn to be used for "the replenishment of current assets."
The funding comes against the backdrop of a declining Russian transport market hit hard by US and European economic sanctions. According to the Moscow-based State Research and Development Institute for Civil Aeronautics, the country's air transport industry requires at least RUB75billion (USD1.85billion) in funding to maintain buoyancy this year alone.
Last month, Russia's Interfax newswire reported that Transaero and UTair (UT, Khanty-Mansiysk) had appealed to the Russian Ministry of Economic Development for the provision of state-backed loans.
Both carriers' financial situations have been impacted by Kiev's decision to ban Russian airlines from transiting its airspace on international flights. The resultant need to circumvent Ukrainian airspace had forced both carriers to incur significant losses.
