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Avianova to be forced into bankruptcy: management

Shareholders in Russian low-fare operator Avianova are to put the carrier in bankruptcy, according to the team which is still claiming management of the budget airline.

The management, which has been caught up in a power struggle between shareholders A1 and Indigo Partners, said the two sides have "agreed to terminate their business relationship".

Avianova, which started operations only two years ago, operates a fleet of leased Airbus A320s from companies including International Lease Finance and Aviation Capital Group.

It has suffered a number of setbacks, the most serious in June this year when the management was ousted in a coup by the Russian investor after relations between the two shareholders deteriorated.

Avianova's management, which is still in Moscow, said the shareholders have decided to "place the airline into bankruptcy".

It added that this was "despite a series of offers" to the Russian investor, A1, for purchase and recapitalisation of the carrier. The team is also vehemently disputing the content of a report into the way the airline has been managed, describing it as a "gross distortion" and an attempt to justify the events in June.

Neither A1 nor Indigo Partners could immediately be reached for comment.

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