Decision next week (277 words)

Published: 5/29/2001

The long-awaited shareholders' meeting of AK Nizhegorodsky Airlines (Nizhni Novgorod Airlines), postponed several times in the last two months, finally took place on 24th May, with two issues on the agenda: the election of the new board and a new general director for the airline. According to the local media, representatives from four companies were elected to the Board, including OOO Panaviatrans and the Rostov Aviation Repair Plant 412, along with two representatives from NNA. Evgeny Dzyubo, however, formerly the airline's temporary manager and acting General Director, denied that anyone from Panaviatrans or Plant 412 had been elected to the board and refused to name the board directors, saying that the individual board members would be appointed next week, when a board meeting will take place. Given that the airline's debts are guaranteed by Panaviatrans and Rostov Plant 412 under the creditors' agreement that took the company out of bankruptcy in December last year, it seems likely that they will be on the new board. The board will then appoint the General Director and other management staff and deal with other issues relating to the development of the airline. Under the creditors' agreement signed on 19th December 2000, Panaviatrans and Rostov Plant 412 have to repay the airline's debts of Rb28m ($1m) within one year of signing the agreement. Panaviatrans's representative, Oleg Ovsyannikov, commented at the time that the agreement would allow the airline to attract investments, renovate the aircraft fleet and create new jobs, although little has been seen of these benefits. NNA is currently operating profitably, according to the airline.

Article ID: 2563