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Transaero to be grounded on 26 October

Russian carrier Transaero is to be grounded next week following an assessment of the airline’s operational situation by the federal aviation regulator Rosaviatsia.

Rosaviatsia conducted an inspection of the Moscow-based airline over the period from 6-20 October, based on its deteriorating financial position.

It states that, as a result of the audit, it has concluded that Transaero does not have the ability to service its debts and fully fund its continuing operations.

This means the carrier “does not meet” certification requirements laid down in Russian federal aviation regulations.

Rosaviatsia says that it has sufficient grounds – including safety and consumer-rights concerns – to revoke the airline’s operating certificate, which will be withdrawn from 26 October.

The proposal to cancel the certificate followed the identification of “deficiencies” in the operation and a decline in the airline’s performance indicators as well as its economic condition, it states.

Transaero’s “acute shortage” of funds, it adds, could jeopardise provision of simulator training for pilots and timely maintenance of its aircraft.

The airline had obtained Russian government support, including state guarantees backing a Rb9 billion loan which was granted on condition that the airline develop an improved business model.

But with the carrier “on the verge of bankruptcy”, says Rosaviatsia, its operational management was transferred to flag-carrier Aeroflot – which had also looked into a possible acquisition of Transaero.

Transaero has been cancelling dozens of flights this month, typically around 70 services daily, with passengers being moved to other operators.

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