No plans to stop flights before, after New Year - Transaero

The Russian airline company Transaero is not planning to stop flights, the air carrier announced, commenting on the media reports that such a move was possible over the company's financial problems.

The Russian airline company Transaero is not planning to stop flights, the air carrier announced, commenting on the media reports that such a move was possible over the company's financial problems.

"Contrary to several media reports, the company is not planning to suspend its flights either before or after the New Year," the company said.

Transaero recalled that state support provision was in broad use in 2008-2009 and now with respect to a number of largest banks and other companies. "Because it is the largest banks and companies in all sectors that are the backbone of the system and at the same time are the worst affected by the crisis," the air carrier said.

Today, many Russian air carriers find themselves in a difficult situation because of the falling demand for air travel against the backdrop of economic stagnation. Russia's third biggest airline, UTair, is no longer able to service its debt and is negotiating its restructuring. The situation at Transaero has been actively discussed since late September 2014 when it emerged that the air carrier had asked the Ministry of Economic Development to give state guarantees on its loans of up to 10 billion rubles.

A source at one of the government departments involved in the discussion of the situation around Transaero told Interfax that the air carrier had indeed serious problems, with the company "going both to the government and banks." The source said that flights suspension before the New Year was totally ruled out. He also stressed that if the government recognizes that such a threat really exists and the problems are not exaggerated, Transaero will get the necessary support but the format of state aid has yet to be decided.

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