Komiaviatrans aims to expand network after avoiding bankruptcy

Russian regional carrier Komiaviatrans is aiming for expansion after an injection of aid from the local government allowed it to avoid collapsing into bankruptcy. The Komi republic’s ministry of economic development states that the airline had recorded debts of Rb4.2b ($55m) in October last year. Government representatives approved a Rb1.8b financial assistance package which was credited to the company’s accounts in December. The ministry says this has been used to pay obligations to suppliers, as well as salary and tax arrears, slashing the debt to Rb1.1b by the beginning of January this year. It states that paying off the overdue debts will “prevent the company from going bankrupt”. “Elimination of bankruptcy risks allowed Komiaviatrans to move on to stabilising its financial condition,” it adds, enabling the airline to restore fleet capacity and increase production.<br/>