Orenair (R2, Orenburg) will borrow RUB1 billion (USD16.55 million) from parent Aeroflot (SU, Moscow Sheremetyevo) to help prop up its business which is suffering from a dramatic downturn in passenger numbers as well as the severely weakened Russian rouble.

Russia's Vedomosti business paper reports the loan, which will be repayable over three years at 20% interest per annum, will help the airline repay outstanding aircraft lease payments which are denominated in foreign currency.

Orenair registered a RUB4.2 billion (USD67.77 million) loss for its latest financial year, the largest of any of the Aeroflot Group's subsidiaries. While it has historically relied on charter flights for the country's many tour operators in the past, Aeroflot is considering reorienting Orenair's business model towards the scheduled services sector.

Currently, Orenair operates sixteen B737-800s and three B777-200(ER)s on flights throughout Russia as well as to Germany and Tajikistan.