Russian aviation authority Rosaviatsiya has barred AirUnion's three major carriers from selling seats on flights during the upcoming winter season in a move adding to uncertainty about the alliance's future.
The decision is effectively tantamount to a blanket ban for KrasAir, Domodedovo Airlines and Samara Airlines on providing scheduled and charter services from 1 November.
Rosaviatsiya cites the severe disruption in their services stemming from unpaid debts to fuel suppliers, who have refused to refuel AirUnion aircraft. As a result, at least 3,500 passengers have been stranded at airports over the past two days.
"We cannot allow these carriers to pay overdue debts at the expense of revenues from selling services to be provided in the future," explains Rosaviatsiya chief Yevgeny Bachurin. "We don't know how this situation will develop. We're preparing for the worst but hope it will not happen.
"In theory, if AirUnion manages to resolve the crisis and prove its solvency to creditors, there are chances for lifting the ban."
Following consultation with regulators, state corporation Russian Technologies, which has a mandate to take over government shares in AirUnion, has agreed to secure payments for the supply of 3,600t of fuel.
Russian carrier Transaero even allocated 500t from its fuel reserves to assist the AirUnion fleet and, along with S7 Airlines, began transporting around 2,500 passengers stranded at Moscow Domodedovo Airport.
"To this end, we've deployed larger-capacity aircraft on some routes and are prepared to add frequencies, if need be," says S7 commercial director Vadim Besperstov.
But there are concerns that the interim steps will not solve AirUnion's crisis in the longer term.
"This calls for a political decision," says head of trading house TOAP Yevgeny Ostrovsky, alluding to the Russian Government's role in creating AirUnion as a single airline designed to rival Aeroflot.
"Its credit rating is now nil. The only way to restore it is to provide appropriate state funds under guarantees from Russian Technologies and its tight supervision over spending."
Source: Air Transport Intelligence news
