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Russian government may take over Aviacor aircraft manufacturer

According to the regional government, neither the company’s bankruptcy nor massive personnel layoffs are being considered as options

SAMARA, April 29. /TASS/. The Russian authorities may take over the Aviacor aircraft manufacturer (part of the Russian Machines holding controlled by businessman Oleg Deripaska), the press service of the Samara region administration told TASS.

"They are working out options to diversify the plant’s business, which in particular may include involving a state capital entity in the management," a spokesperson told TASS, without naming any particular state-run company that could be engaged in the business.

Currently, the aircraft manufacturer’s has a 2 bln rubles ($31 mln) debt. The bulk of it is the advance payment from the Russian Defense Ministry for the supply of five An-140-100 aircraft the company failed to work due to force majeure circumstances related to events in Ukraine, Mikhail Zhdanov, Industry and Trade Minister of the Samara Region, said earlier.

According to the regional government, neither the company’s bankruptcy nor massive personnel layoffs are being considered as options.

Currently, the plant employs 1,300 people. Earlier it was reported that the Russian government approved measures of state support for Aviacor. There is a risk that the plant’s account may be frozen due to the debt.

The press service also added that at present the management of Aviacor is working on the preparation of a rehabilitation program for the enterprise and is going to submit it to the Industry and Trade Ministry. If approved, the program will be sent for consideration to the government commission for the prevention of bankruptcy of strategic enterprises and organizations, as well as organizations of the military-industrial complex.

Samara-based Aviacor is one of largest aircraft manufacturers in Russia. The company is part of the Russian Machines Corporation, which unites the engineering assets of the Basic Element holding of Oleg Deripaska. In 2015, Aviacor decided to suspend the program for the production of An-140 aircraft due to the situation in Ukraine. Earlier, the plant produced Tu-154, the most widespread jet passenger aircraft in the USSR.