UTair (UT, Khanty-Mansiysk) is planning to develop its charter operations into a separate business entity Air Transport World has reported. UTair has transferred its fleet of nine B757-200s to its Katekavia (Sharypovo) subsidiary in anticipation of the move.
A part of its two-year restructuring programme - Impulse - aimed at saving RUB5billion (USD141.1million), the move will allow UTair to better follow trends in the Russian charter industry. Despite a general downturn in the industry this past year, UTair's main partner, Anex Tour, will increase its flights by 30% during the current 2014/15 winter season.
With Russia's domestic aviation industry faltering as a result of a slowing economy, brought on in part by US And European sanctions, so concerns about the future prospects of several airlines - UTair among them - have been raised.
Parent UTair Aviation appointed Raiffeisenbank to act as a debt restructuring advisor after its UTair-Finans unit last week failed to repay two instalments of RUB1.23billion (USD27million) and RUB1.45billion on two RUB1.5billion tranches of three-year debt. The payments were due by November 20.
Though UTair Aviation CEO Andrey Martirosov did admit the company was experiencing "temporary" difficulties, he downplayed the default as "non critical."
"The situation is of a temporary nature and should not affect the company's operations, if a timely and reasonable solution between the lenders and the company is found," he said. "Raiffeisenbank and UTair have started working on the restructuring plan and are going to present it to investors in the coming days."
