29 September, 2017

Aeroflot to rescue VIM

Russian government officials confirmed yesterday that the state controlled airline Aeroflot will help private carrier VIM Airlines after the struggling airline asked for financial aid from the state.

VIM Airlines cancelled or delayed dozens of flights over the last few days for the past few days since it asked for help with its finances. The statement said Aeroflot's board of directors was to meet on Thursday to discuss ways to support the operations of VIM airlines, however, the statement, nor did any government spokespeople confirm just exactly how much money VIM would get.  

Yet according to local media, a source inside the air transportation administration says would spend some 1.85 billion roubles which is about $31.92 million to prop up VIM Airlines and restructure the company. 

Rosaviatsiya, Russia's aviation authority has said that VIM Airlines owes six banks some 7 billion roubles.  Russia's Investigative Committee, the state body which probes major crimes, said in a statement on Thursday that VIM Airlines' director general and chief accountant had been detained on suspicion of fraud.  The committee added that the airline's owners had left the country.

Unsurprisingly, VIM were not available for comment yesterday. 

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