Yegor Borisov, the president of the Republic of Sakha (Yakutia) in Russia's Far East, has appealed to Moscow to reconsider its decision to deny Yakutia Airlines (R3, Yakutsk) RUB5 billion (USD72.8 million) in federal subsidies.
During a meeting with Prime Minister Dimitri Medvedev last week, Borisov highlighted the need for added funding given the state-backed carrier's growing debt burden as well as forex-denominated leasing dues. Securing state guarantees would allow Yakutia Airlines to obtain five-year bank loans, he said, thus allowing it to maintain operations to more remote parts of the republic. According to Russia's AEX.ru, Medvedev agreed to have the issue reviewed by the ministers of economy and finance.
In February, the government of the Sakha Republic (Yakutia) allocated the carrier RUB800 million (USD10.57 million) to cover its leasing costs for the year. In a bid to improve its future fortunes, airline management is also planning to attract a strategic investor.
Though it is one of the largest subnational districts in the world covering 3 million square kilometers, the Sakha Republic has a population of just over 1 million. As such, given the spareness of its inhabitants, it relies heavily on air transport to ensure local cohesion.
At present, Yakutia Airlines operates a fleet of four B737-800s, one B757-200PF, three DHC-8-300s, three DHC-8-400s, two SSJ 100/95s, and four An-24RVs on flights throughout Sakha as well as to other parts of Russia, Japan, the Czech Republic, South Korea, and China.
