Region seeks transfer of Dalavia from Federal property fund (211 words)

Published: 4/10/2001

Having provided $6m of financing for the leasing package for Dalavia's two new Tu-214s, Victor Ishaev, head of the Khabarovsk regional administration, has asked the Ministry of Property to transfer its ownership of Khabarovsk-based airline Dalavia to the region. The first of the new aircraft are due to be delivered from KAPO in the near future. The Khabarovsk regional authorities are keen to merge Dalavia with two other regional airlines Vostok Aviation Company (a joint stock company with the Ministry of State Property holding 25.5%/Kharbarovsk State Property Fund 31.9%), and Nickolaevsk United Aircrew (Ministry of State Property 100%). Dalavia currently operates, intraregional and international routes. Vostok Aviation Company and Nickolaevsk United Aircrew provide primarily intraregional transportation and other aviation services within the region. The state will transfer Nickolaevsk United Aircrew to the regional property fund for inclusion in the new entity to clear federal debts to Khabarovsk region's budget. The administration's view is that the 3 airlines can only survive as one entity with regional government ownership with state assistance to replace aircraft and eliminate what is seen by the government as damaging competition on regional routes. The merger of the joint stock company Vostok into a new state controlled entity however, has led to local press discussions of its legality.

Article ID: 2482