Russian region to sell airline, airport in budget drive

Authorities in Russia’s Udmurt Republic plan to sell the regional carrier “Izhavia” along with the airport in the capital Izhevsk, by the end of the year in an effort to boost public finances.

The proposal was announced at a session of the regional State Council by the head of the republic, Aleksandr Brechalov, Caliber.Az reports per Russian media.

Brechalov said the airline and airport complex requires investment and further development, which the regional budget is unable to provide. He described continued operations with two Boeing aircraft and three Yak-42 jets as offering “rather limited prospects”, while noting the assets could instead generate immediate revenue through a sale.

Regional prime minister Roman Yefimov said that road-related companies will be carved out of Izhavia prior to privatisation and will not be included in the transaction. Lawmakers in the State Council have already approved the decision to proceed with the sale.

Earlier, Udmurtia included only Izhavia in its privatisation plan for the current year. The company is expected to be sold via an open auction, with a starting price to be determined by an independent valuation.

Despite a two per cent decline in passenger numbers to 683,000 last year, the carrier reported net profit of 1.7 billion roubles (over $22 million USD). Alongside passenger services, Izhavia also operates cargo flights.

By Aghakazim Guliyev