Savotchenko moves into second position as Mikhailov returns to take up the helm, backed by Kato Aromatic (420 words)

Published: 12/7/2001

The appointment of Aviastar-SP's operations director, Valery Savotchenko, as General Director seems to have been only a temporary measure at the troubled plant. Now, Victor Mikhailov, a former General Director of Aviastar between 1990-1997 and latterly General Director of Volga Dnepr (VD) and Chairman of the Russian Cargo Airlines Association, has been brought back as GD, with Savotchenko as his deputy, with unconfirmed reports that he has been ill during his period as General Director. According to reports, Vladimkir Shamanov, the Governor of the Ulyanovsk Region reintroduced Mikhailov to the plant on 7th December. During the presentation Mikhailov said that he would produce an investment plan within three months and identify ways of reducing the plant's current debts of Rb1.5 billion. He also mentioned that he would be cooperating with Kato Aromatic. It was also confirmed that as a result of an EGM of Aviastar-SP on the 5th of December, Valery Voskoboinikov, Deputy General Director of the Russian Aerospace Agency would become Chairman of the company's board. Mikhailov's original departure in 1997 was an acrimonious one, with accusations of staff poaching and unspecified financial irregularities. Mikhailov recently returned to Aviastar through his appointment to the board of the Aviastar Holdings, a 24% shareholder in Aviastar-SP, at the beginning of November as a result of a contested EGM. Savotchenko had been warmly welcomed as the man to make things happen at the plant and actually get production underway of Tu-204s, which had stalled over the spring and summer. It is unclear whether this change of roles will have any impact on that process, still reported to be slow in gathering momentum, with gradual work occurring on one airframe No32. There is concern that yet another politician is in charge, but Mikhailov's reputation is that of a “hard man” with influence. In hindsight, his deal with Kamal's Kato Aromatic in 1996 appears naïve, but some sources say that a deal had to be struck, as nothing else was available. Other sources within the plant howeevr, believe rightly or wrongly that the closeness of Mikhailov to Kamal is not necessary beneficial to the plant givne past disputes over pricing and are also concered that as a man of 64, whether Mikhailov has the energy and stamina for the job. The confirmation that the appointment of Mikhailov has Kamal's hand upon it, comes from sources that report, at MAKS in August, Kamal was effusive in his praise of Mikhailov and recommended his return to Aviastar as being an essential part of the plant's recovery. This was followed by Mikhailov's return to the Aviastar Holding's board, reportedly as one of Kamal's appointees. The presence of Vooskoboinikov however, clearly indicates that any changes that have taken place in the administration of the plant are with the active support of the Russian Aerospace Agency.

Article ID: 2948