Pulkovo ready to take over

Published: 3/10/2000

Pulkovo Airlines is reported to be poised to take over the running of the Murmansk Aviation Company (MAC), which itself purchased the bankrupt regional carrier Murmansk Airline, for $5.1m at the end of last year. No deal has yet been ratified, but representatives from Pulkovo apparently spent all of last week in Murmansk. The move follows the announcement, on 3rd March 2000, that all MAC flights had been cancelled and the fleet, including four nearly new Tu-154Ms, was grounded (although previous reports have said three Tu-154Ms), owing to the bankruptcy of the airline. Murmansk Aviation Company is not registered as an air operator and utilized the codes of the former airline. It is 50% owned by Norilsk Nickel, one of the airline's major creditors and owner of one of the Tu-154s, and 50% by Murmansk regional administration. It seems that this, coupled with a lack of air transport experience, has generated more problems than solutions for the airline. Now, the air company appears keen to hand over the operational reins to Pulkovo. However, the situation remains confused, Pulkovo's Sales Director, Vasily Naletenko, says that Pulkovo would take over Murmansk Airline's flights as of the 7th March, although Murmansk's legal department denied all knowledge of the bankruptcy status. Neither company will comment further on the situation, except to confirm that negotiations are taking place and that Pulkovo will be organizing the resumption of flights. It is understood that Pulkovo will be required to maintain flights within the Murmansk region. Murmansk Aviation Company's 420 employees now fear mass redundancies and cite ineffective management and lack of experience as the cause of the current crisis. At the time of the acquisition, Norilsk Nickel claimed that it would restructure the airline and so recover its investment. It added that it would only require six months to move up the learning curve and turn the fortunes of the airline around. That seemed a tall order then, and the present state of affairs suggests that things have fallen apart in less than half that time. It is interesting that, at the time of the auction, an entity called Baltinvestovsky, believed to be a front for Pulkovo, made a bid of $5m for Murmansk Airlines. Now, the unsuccessful bidder looks as though it will be carrying off the spoils after all, by default.

Article ID: 1666