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08:12 GMT +3 hours20 December 2014
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Russia transfers state's AirUnion stakes to government corporation

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Russia's State Property Committee has approved the transfer of the state's stakes in the embattled AirUnion alliance to the state-run Russian Technology Corporation, a Russian paper said on Thursday.
MOSCOW, October 9 (RIA Novosti) - Russia's State Property Committee has approved the transfer of the state's stakes in the embattled AirUnion alliance to the state-run Russian Technology Corporation, a Russian paper said on Thursday.

AiRUnion, jointly run by the state and the Abramovich brothers (no relation to Chelsea FC owner Roman), has been hit by a cash crisis leading to flight delays across Russia since August 21. A government pledge to provide the company with fuel has failed to solve the company's financial problems, which include fuel bills, back tax claims, and a bankruptcy suit.

According to the Kommersant business daily the State Property Committee signed documents on transferring 51% of shares in KrasAir, 50.04% in Domodedovo Airlines and 46.5% in Samara to the Russian Technology Corporation, while the Transport Ministry approved documents on the transfer of stakes in Vladivostok-Avia, Dalavia and Sakhalin Air Routes.

The AiRUnion alliance companies are being transferred in line with the Russian president's decree, which has been amended twice to include new assets in the transfer package, Kommersant said.

The Russian Technology Corporation can now start the process of establishing a new air carrier, using the assets of the embattled AirUnion companies, Kommersant said, citing sources in the Russian air carrier market.