Creditors Consider UTair Rescue Plan Amid Shutdown Fears | Aviation International News

Creditors Consider UTair Rescue Plan Amid Shutdown Fears

Operational performance at Russia’s fourth largest airline improves, but its financial condition remains dire.

UTair's fleet now includes nine Boeing 737-800s. (Photo: Vladimir Karnozov)

By Vladimir Karnozov

May 3, 2019

The management of Russia’s UTair hopes talks with creditors results in a new rescue plan amid mounting debt pressures and controversial reports about its ability to fulfill passenger obligations. Russia’s fourth-largest airline, UTair last year generated 6.6 percent of the country’s total passenger traffic, following Aeroflot Group, S7, and Ural Airlines. While UTair’s passenger numbers rose by 8.7 percent, to 7.9 million, and corporate revenue rose 10 percent, to 83.6 billion rubles ($1.3 billion), higher fuel prices, a crew deficit, and devaluation of the national currency increased operational expenses by 15.5 percent, to 78.8 billion rubles. Although it turned an operational profit, the heavily indebted group could not pay its obligations in full.

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