A restructuring programme seems close to being signed off and the appointment of a new chief will be made in mid-December (468 words)

Published: 11/30/2001

According to local media reports, the Ministry of Transportation is to organise what is described as a "tender" for the position of General Director of the state-owned GUAP Perm Airlines. The announcement comes after discussions with the Perm Regional administration and the results will be announced on 18th December 2001. It is unclear whether the current temporary General Director, Vladimir Wasserman, will be among the four-six candidates shortlisted for the post. The news of the search for a new General Director also comes at a time when the regional administration and the ministry are reported to have agreed on the way ahead for the airline's restructuring into an airline and airport and the sale of the government's holding. Source suggest that the Ministry of State Property has completed the required documentation and is ready to go having consulted with local authorities. The final announcement of the timetable, however, waits the approval of Nikolai Gusev, Deputy Minister of Property, who was due to visit the city in the week commencing 26th November. According to Perm Region's Vice Governor, Anatoly Tyomkin, responsible for the privatisation and restructuring, there is "serious interest" in the privatisation, despite the requirement to clear the entities' debts of $630,000 as part of the process. The decision to proceed with the privatisation follows months of conflict between the Ministry of Transportation and the previous General Director Igor Grachev over the issue. There has also been considerable speculation as to whether the airline could survive separately from the supportive revenues of Perm Airport. The current financial condition of the airline also appears to be the subject of some conjecture, with earlier reports suggesting that the airline's debts were closer to $8-10m rather than the $630,000 currently being broadcast. The entity's operating condition also yields contradictory responses, with local sources describing it as okay, in marked contrast to comments earlier this year from Yury Trutnev, who said that the airline was “on its knees” and needed a change of management. Who might buy the airline activities remains to be seen, but Aeroflot particularly has expressed its irritation that, under the licences, only Perm has the right to introduce more aircraft and is unable to do so, therefore preventing the national carrier from fully exploiting a route on which it claims seat load factors of 80%. More generally, it also appears that the regional airlines are beginning to see more interest from investors, with suggestions that the recent Ural Airlines' auction of the government's 13.8% stake, attracted “two or three” investors: a definite improvement on the two previous auctions when no-one came forward to buy at around the same price.

Article ID: 2936