Kyrgyzstan Air Company settles with two creditors

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Kyrgyzstan Air Company says it has secured its operational activities after reaching a debt settlement with two major creditors.

The airline has paid off an overdue debt of $2.5 million for ground handling services owed to its main hub, Bishkek Manas airport.

The airport administration says it will therefore continue to provide services for the flag carrier and will not impose penalties.

In addition, Kyrgyzstan Air Company has repaid arrears of around $2 million to the gold mining company Kyrgyzaltyn.

This debt stemmed from the use of a Tupolev Tu-154M trijet owned by Kyrgyzaltyn's subsidiary Altyn Air, which was merged with Kyrgyzstan Air Company in 2007.

A spokesman for the airline says it earned the equivalent of $370,000 in net profit last year while revenues rose 46% to $58.4 million.

Its passenger numbers stood at 308,000 - up 47% from 2010 - while domestic traffic rose 34% and international by 58%.