The airline agrees to suspend lease payments due to coronavirus and the economic crisis. Utair expects to restructure loans for 56 billion rubles. by the end of June
Photo: Leonid Faerberg / Global Look Press
Utair, one of the top 6 Russian airlines, is considering suspending financial leasing payments, including aircraft rental fees, due to the COVID-19 pandemic. About it it says in the notes to her RAS report for 2019, published on April 6.
At the end of 2019, the company received an operating profit of RUB 1.5 billion. against a loss of 2.3 billion rubles. a year earlier. Net loss increased by 3.3 times and amounted to 14.4 billion rubles. Revenue grew by 1%, to 59.2 billion rubles. Among the unfavorable factors, the carrier’s representatives called the losses for 2014-2015 during the previous economic crisis, the increase in prices for jet fuel in 2018, the coronavirus pandemic and the drop in oil prices in the first quarter of 2020. “The listed factors indicate that there is significant uncertainty that could raise significant doubts about Utair’s ability to continue its operations continuously,” the airline warns.
Utair is currently negotiating with lessors, it follows from the report. We are talking about the suspension of lease payments and lower interest rates. Formerly Utair agreed with VTB Leasing on the transfer of payments for three Boeing 767-200. Total company 64 liners.
The airline also plans to complete the restructuring of loan debts of 56.5 billion rubles. by the end of the first half of 2020, the report said. At the end of 2018, Utair faced a lack of liquidity and defaulted on one of the loans, after which it began negotiations with banks on restructuring.
German Gref, the head of one of Utair’s largest lenders, Sberbank, said in February that negotiations on restructuring its debt were in the final stages. But Trust Bank, another major lender, does not support the restructuring option offered by the airline, a bank representative said to RBC. “The proposal to write off most of the debt cannot be accepted by the bank,” he explained.