2000-01-24 Kazak Corporate News - Air Kazakhstan Group
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Air Kazakhstan Group
The Air Kazakhstan Group (AKG) owes nearly USD 110m to creditors and has USD 10m in accounts receivable, President Alexander Krinichansky stated at a government session. The group was created late last year as a holding company for the national air carrier (Air Kazakhstan), a regional airline and several transport-related facilities.
Krinichansky described the financial health of AKG as “extremely complicated.” He said the company is currently experiencing monthly losses of USD 1.5m, the lion’s share of which (USD 1.2m) stems from the maintenance of Air Kazakhstan’s two leased Airbus A-310’s. On January 20, AKG’s managers were planning to ask the US aerospace firm Boeing for a leasing holiday of 6-8 months, since the company is incapable of meeting the payment terms for the Airbuses.
At the same session, Prime Minister Kasymzhomart Tokaev stressed his fear of damaging Kazakhstan’s image, stating that the government cannot afford for the national air carrier to go bankrupt like its predecessor, Kazakhstan Aue Zholy (KazAir). Tokaev recommended that the management of KAG change its tariff policy and return to stricter financial accounting. (Golden Eagle Partners)