Forum Aviation

KD Avia to suspend operations Wed due to financial problems

MOSCOW, March 11 (Itar-Tass) - Russian Kaliningrad airline KD Avia will suspend operations at 6:00 p.m. Moscow time on Wednesday for an indefinite period of time due to ongoing financial difficulties, the company’s press secretary Yelena Penkovaya told Tass,

The airline has no more of its own funds to finance its current operations, Penkovaya said.

The company has already informed Gennady Kurzenkov, head of the Federal Air Transportation Agency, or Rosaviatsiya, about its financial situation the economic news agency Prime-Tass reported.

The company said that it had sought help from the Transportation Ministry, the Russian government, and the country’s largest banks but had not received any real support so far.

During the suspension, the airline’s passengers will be carried by other airlines, Penkovaya also said.

Established in 2002, KD Avia, previously known as Kaliningradavia, is based at Khrabrovo Airport in the city of Kaliningrad

KD Avia: Normal Operations
Kaliningrad-based KD Avia has issued a press statement regarding its operation.

In the statement, the airline says all flights continues to operate on its regular schedule with the state aid from Russia.
Over the past two days the airline has been able to formalize new arrangements which have stabilized the company.
A coordinated approach has been taken by the Ministry of Transportation of the Russian Federation, Rosaviation and a number of financial institutions in order to facilitate the introduction of state aid for the airline.

This has led to the immediate lifting of any temporary restrictions placed by leasing companies on the operation of KD avia's fleet of aircraft.
KD avia is now able to continue its daily flying program without any further disruption, whilst measures are taken to fully complete the financial arrangements