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Aeroflot may finance VIM Airlines operations from its funds with compensation

VIM Airlines announced on September 25 it was halting charter flights due to financial problems and shortage of the working capital

MOSCOW, September 28. /TASS/. Russia’s Deputy Prime Minister Arkady Dvorkovich approved a directive suggesting that the Russian flag carrier Aeroflot can use its funds to finance operations and financial activity of distressed VIM Airlines with further compensations on account of mutual settlements between the airline and the industry, according to the document posted on the government’s website on Thursday.

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Government representatives in Aeroflot’s Board of Directors should initiate consideration of this matter at the Board meeting on September 28 and vote for the draft resolution stipulating provision of these funds, the document says.

"Transfer of money within limits of the said amount should only be made on the basis of a written instruction of the Federal Air Transport Agency," the directive says.

VIM Airlines, Russia’s tenth air carrier, said on September 25 that it halts charter flights due to financial problems and shortage of the working capital. This was preceded by a series of flight delays in Russian and overseas airports. According to information of Rosaviatsiya, company’s debts amount to about 7 bln rubles ($120.7 mln).

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