Vladivostok Avia to set up office in Yekaterinburg

UrBC, Yekaterinburg, November 16, 2011. Vladivostok Avia is closing down its representation in Yekaterinburg. The decision was made at the company’s BOD meeting recently. The office was located in Uralskaya St. In fact, the airline decided to close down the representation in Kemerovo as well. Now Aeroflot recently got access to the aviation assets of RosTechnologies State Corporation, with its daughter enterprise Aeroflot-Finance receiving, among other assets, a 52.15% stake in Vladivostok Avia. The air carrier is now reported to run the chance of losing its current name in the course of a

Vladivostok Avia reduced the number of its Vladivostok-Moscow flights to one a week, the local booking offices report. The scheduled Moscow-Yekaterinburg flight was launched on June 1, 2008. The flight was operated on a daily basis (except for Wednesdays). The airline’s representation was introduced in Yekaterinburg last August, but they were unable to explain it to UrBC why the number of flights had been decreased.

As the company had 513.87 million RUR worth of accumulated loss last year, Vladivostok Avia thought it best not to pay any share dividend for the year 2009. The decision to this extent was taken at the annual general meeting in Artem. The stockholders also agreed to direct 39.11 million RUR worth of net profits to compensating the earlier years’ losses. Finally, it was decided that no bonuses would be paid to the BOD members for their performance.

Starting October 30, 2008, Vladivostok Avia will no longer be operating Yekaterinburg-Shardzha flights to the United Arab Emirates. This means only two flights have been operated by the carrier (on October 23, 2008 and October 27, 2008) since the destination has been initially offered this season. The passenger load is reported to have been very low. Experts believe this failure was brought about by the wrong choice of the company’s development direction. ‘There are already more than plenty of flights from Yekaterinburg to the United Arab Emirates at the moment,’ says More Travel’s Commercial

OAO Vladivostok Avia’s losses increased by 466.962m RUR, or 95.2%, from 490.25m RUR up to 957.22m RUR, although it is not quite clear from the company’s report whether the increase occurred over the last quarter of 2010 or the year 2010 on the whole. The airline explains that the loss was brought about by the low season demand, which resulted in fewer flights being booked; what is more, the jet fuel price rose by 20% on average in December 2010.