Troubled airline to be prepared for partial privatization (177 words)

Published: 8/1/2001

The Tatarstan Republic State Property Committee has reported that the troubled state-owned entity, Tatarstan Airlines, has become an open joint stock company, also called Tatarstan Airlines. The state still retains 100% of the company, but the government has announced that part of the airline will be offered for sale. The timetable, the size of the stake and the potential price has not yet been decided, although the Tatarstan Government had previously declared its intention to privatise between 2001-2005. Tatarstan Airlines was formed in 1998, out of several of Tatarstan's airlines and the Nizhenakmsk's Begishevo Airport. Since then, it has struggled to perform and, in April 2000, required substantial tax credits from the government. The company operates three Tu-154Ms, four An-24s, one Yak-40, three Yak-42s and one Tu-134. It acquired one Tu-134 in 1999 from Lithuanian Airlines for $200,000 with the help of Tatarstan Government. The government is also reported to be assisting in the acquisition of a Tu-214 from Tatarstan's KAPO production facility.

Article ID: 2676