CEO: bankruptcy of “Transaero” – a hopeless way for creditors and aviation


MOSCOW, October 30. The new General Director of “Transaero” Valery Zaitsev believes that the bankruptcy of the airline – and the path prospects for lenders and Russian aviation in General.

“We are confident that the bankruptcy of the airline – that way, hopeless and creditors, which in this case have almost no chance of recovering their funds, and Russian aviation in General”, – reads the statement of the General Director “Transaero airlines” Valery Zaitsev to the lenders, issued during the conference to discuss prospects of relations and cooperation “Transaero” with creditors.

New management “Transaero” considers that the reason for the difficult financial situation of the airline became a strategy for rapid growth in the traffic volume due to the low prices. “In the current economic environment, this strategy may not be successful,” – said Zaitsev.

According to him, management will begin to develop a business plan on the principles of operational efficiency, the application of “industry best practices for management of route network, cost optimization, risk management”.

The management of Transaero’s goal is to build a company that can deliver consistently positive financial results.

Transaero may offer creditors the company’s partial debt cancellation, as well as its conversion into shares of the airline, said Zaitsev.

“Given the exceptionally high amounts of debt, and the complexity of the existing company situation, the proposal (restoration of the company’s operations – approx.) probably would involve partial debt write-off and conversion of debt into shares of the company’s positive cash flow and guaranteed rates of return”, – reads the statement of the General Director “Transaero airlines” Valery Zaitsev, circulated at the conference to discuss prospects of relations and cooperation “Transaero” with creditors.

“We are asking creditors to be patient and assure them that you will be made transparent and fair proposal for debt restructuring”, – the statement reads.

As previously reported, the debt Transaero amount to 250 billion rubles, the state-owned Banks are the main creditors of the company in favour of bankruptcy of the air carrier. In mid-October, Alfa-Bank and Sberbank filed lawsuits on bankruptcy “Transaero”.