TAT agrees to decrease claim against producer from $48 m to $38 m (230 words)

Published: 9/7/2000

According to Irina Shapovalova, spokesperson for Aviakor, on 1st September 2000 the Samara Arbitrage Court held a hearing on the outstanding claim of Tyumenaviatrans (TAT) claim against Aviakor for the non-delivery of Tu-154s. Tyumenaviatrans has demanded $48 m compensation for the non-delivery of the aircraft. According to Shapovalova, TAT has decided to reduce the claim from $48m to $38m, but the producer still believes that the claim is excessive. The parties therefore did not come to any agreement and the court hearings were postponed until 21st September 2000. The agreement to deliver five Tu-154Ms to TAT was signed in 1995 when the plant was under temporary management. Siberian Aluminium took over Aviakor in 1999, but received no cash from TAT, which paid the advance for the aircraft to utility Samarenergo originally in paper covering debts owed by the plant. The facility therefore did not have working capital to build the aircraft, a situation that, according to Shapovalova, remains unchanged as the plant struggles due to lack of orders. TAT has offered to pay $500,000 to complete the Tu-154M #2, but Shapovalova says this is not sufficient to finish the half-completed aircraft as costs have grown significantly since the original deal was signed for $7.5m per aircraft and are now closer to $15m.

Article ID: 2063