Krasnoyarsk Airlines moves to restructure its airline and airport activities

Published: 9/23/1999

A report in Russian newspaper, Vremya, has suggested that the Krasnoyarsk regional administration, led by Governor Lebed, wants to separate Krasnoyarsk airline from Krasnoyarsk airport. It currently comprises a single entity, called Krasnoyarsk Airlines (Krasair). Shareholders will vote on the issue at an EGM on 6th October 1999. The proposed separation is included in the Krasnoyarsk region aviation development programme, which aims to create a 'competitive' air transport environment in the region. Given the trend of splitting the former 'air companies' elsewhere in Russia, this move is not entirely unexpected. It should have the effect of focussing management on their respective entities so diluting the rather cosy and inefficient relationships that have existed in the past with little regard for commercial return. Given the regional investment fund's 51% holding in the airline it seems unlikely that the move will be opposed by shareholders.

Article ID: 902