Can the airline still survive? (190 words)

Published: 8/15/2000

Air Ukraine has had all its accounts for August seized because of debts to the tax authorities according to reports. This follows a similar seizure in June this year, that left the airline with heavy debts to its employees and contributed to the steady deterioration in the airline financial health in the view of the airline's union representative. The airline, which currently owes $10m and has receivable funds of $3m, has seen its serviceable fleet decline from 30 aircraft to currently only ten aircraft being flyable, leading to speculation on whether the airline can survive. Elsewhere the national carrier is not that happy. According to Vadym Sorokin of Air Ukraine, the Tu-134 carrying the Ukrainian national soccer team which was impounded in May by Eurocontrol after the non-payment of an estimated $2m in debts, although some reports have put it as high as $10m, will probably not be returned because the airline cannot pay the debt. According to the local media the debts were accumulated by regional airlines no longer associated with the national carrier, but that Eurocontrol holds the carrier liable.

Article ID: 1996