14 Apr '09
Air company KD Avia from Kaliningrad that has been miring in debt will get $118m from the regional government, Kaliningrad Governor Georgy Boos said today.
It is not a loan, the governor explained, as the regional government is investing the money to add to its current nine-percent stake in the air company.
As of today, KD Avia’s outstanding accounts payable top $294m, Mr. Boos said.
Rosaviatsia, the RF’s agency that certifies air carriers, has reportedly threatened to withdraw KD Avia’s operation permit unless the firm addresses the financial stalemate by April 15.
KD Avia is one of Russia’s Top-30 of largest air carriers and the main air company for Russia’s Kaliningrad enclave.