Struggling Russian carrier KD-Avia is to resume normal services, after the Government cleared the way for desperately-needed financial support.

The future of the Kaliningrad-based carrier had appeared uncertain after it warned earlier this week that a financial crisis could force it to suspend operations.

KD-Avia says, however, that it has been able to "formalise new arrangements" with the aid of the ministry of transport and federal air transport authority.

These efforts, in co-ordination with financial institutions, have "stabilised" the carrier and immediately lifted restrictions placed by leasing companies on the KD-Avia fleet.

KD-Avia has around 16 Boeing 737 aircraft, leased from a variety of sources.

"We are now able to continue our daily flying programme without any further disruption, while measures are taken to complete fully the financial arrangements," it says.

KD-Avia says its eligibility for state aid from the Government has depended on its complying with detailed criteria. The carrier states that it has been putting measures in place to cut costs.

Source: Air Transport Intelligence news