S7 investors move for Siberia Airlines as Zambian investors move to create an LCC.

Victoria
By Victoria March 28, 2013 14:32

S7 investors move for Siberia Airlines as Zambian investors move to create an LCC.

The good news for aviation just keeps on coming in 2013 and the strangely low North Atlantic jetstream, which is currently sitting right over Madrid, should ensure that northern Europeans will be booking flights to sunnier climates this year in droves. 2013 is the summer that will not come for northern Europe unless the jetstream moves north soon.
In Russia, Vladislav Filyov and Natalya Filyova, the lead investors in S7 with 25.5% ownership, will bid for the 25.5% government stake in Siberia Airlines. Currently, the S7 Group holds 71.34% of Siberia Airlines. It is thought that Alpha Bank will back the move for Siberian Airlines which is significant.
In 2010, Alfa Bank opened an 8.9bn ruble ($297m) credit line, which allowed Siberian Airlines to refinance its debt and stay in business. The bank got Siberia Airlines’ controlling stake as collateral in that deal and received two seats out of nine in the carrier’s board of directors.
The government’s stake in Siberia Airlines will be offered for sale at the auction scheduled for April 25 at the starting price of 1.1 billion rubles. Aeroflot is barred from the auction as it is more than 20% owned by the state.
Meanwhile a group of Zambian aviation professionals and some foreign investors will be launching Zambia’s first low-cost carrier, Mukuba Airlines, in July 2013. Mukuba Airlines Chairman and Chief Executive Officer, Mwansa Chalwe hopes to promote tourism and investment throughout Zambia by making air travel affordable.
The airline simply does not have the required investment at this time to make a real impact and as such with $15m and ATR42 and 72 aircraft only will concentrate on domestic travelers such as those moving around the country for work, but being in Zambia it is very clear indeed that the airline must look to the international market, especially feeding passengers to Livingston from Johannesburg and target all airports where the likes of Emirates, Etihad, Air China and Delta are feeding passengers into Africa. The model should be a no-brainer but regulatory barriers are set quite high as Fastjet has found out and the going will not be easy. African governments really do need to awake from their slumber and open-up their airspace. Also investment is required – if the airline does well over the next year or so then it will be looking to the lessors for larger jet aircraft to spread its net.

Victoria
By Victoria March 28, 2013 14:32
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