“Norilsk Nickel” has found a new owner for Nordavia

The airline “Nordavia-regional airlines”, now owned by “Norilsk Nickel”, will be replaced by the owner and will have control of the co-owners of group “Guta” and the Red Wings air carrier Kuznetsov, reports the newspaper “Vedomosti” referring to its sources.

The deal can be closed on 18 March and its price, according to experts, will be purely symbolic because of the large debt of “Nordavia” and loss of its activity.

“Value “Nordavia” must tend to zero, as it is deeply unprofitable in recent years, its capital is negative,” — said “Vedomosti” analyst IK “Aton” Michael Ganelin.

Currently Nordavia operates regular and Charter flights mainly in the North-West region of Russia, primarily between Moscow, St. Petersburg, Arkhangelsk, Murmansk, Naryan-Marom and Syktyvkar, as well as black sea resorts (Sochi, Anapa). In addition, it has scheduled flights on local airlines on the routes Arkhangelsk — Amderma, Naryan-Mar, Solovetsky, Usinsk.

The fleet of “Nordavia” has nine narrow-body jet passenger aircraft Boeing 737-500 aircraft, however, fly the ships with a rather low loading. According to Rosaviation, in January 2016, the share of passengers engaged seats on flights “Nordavia” was only 65,3%. Only in January 2016 Nordavia carried a little more than 50 thousand passengers.

“The motives of the buyer is unclear: “Nordavia” is included in the airline group increased risk, it has a limited route network, too big for her passenger Park,” says the leading researcher of the Institute of transport Economics the Higher school of Economics Fyodor Borisov.

In turn Ganelin believes that the meaning of the transaction is to expand the route network of the Red Wings through a network of “Nordavia”. In early February 2016 “Nordavia” got a permit for performance of regular flights to Israel from airports in Krasnodar and Mineral Waters (previously she had a permit to fly to tel Aviv from St. Petersburg), and Bulgarian in Burgas (from Moscow and St. Petersburg). These are planned to be included in the summer schedule of the airline, which will enter into force on 26 March 2016.

In mid-February the European aviation safety Agency (EASA) issued a “Nordavia” tolerance on regular and Charter flights in all countries of the European Union.