Striving to expand its cooperation with domestic airlines, VTB Bank has set a RUB 1.2 million documentary credit limit to JSC Ural Airlines for a 3-year period.
Now the Company can tap VTB opportunities to finance its current needs through a wide range of instruments applicable in the international banking practice, such as lending, standby letters of credit and bank guarantees.
Within the limit, VTB has already opened two credit lines to Ural Airlines totaling RUB 100 million. Besides, the Bank has offered the Company USD 2.6 million standby facilities to secure its obligations under the leasing agreement for Airbus А-320. Partnerships between the parties started in 2008 and presently the total volume of the Company's outstanding obligation to VTB has approximated RUB 300 million.
OJS Ural Airlines has been operating for more than 65 years, and as a separate legal entity - since 1993. The Company carries passengers to 25 cities of Russia, 10 cities of the CIS, and 48 cities of the world, with regular flights to 15 of them. Inter-Russia regular flights account for 40% of the gross sales, with the international flights including the CIS accounting for 34%, and charter international flights - 25%. Export / import share in the total volume of operations is 55%. By 2008 performance, Ural Airlines is ranked 7th among the Russian aircompanies in terms of passenger flow.