VTB and ARMAVIA Air Company signed a Cooperation Agreement aimed at long-term and mutually rewarding partnership in implementing a renovation and modernization program of ARMAVIA air fleet.
The agreement stipulates VTB Group participation in complex banking servicing to ARMAVIA and financing current and other air company's projects including fund raising from foreign financial institutions. Within the framework of the Agreement the company will consider VTB as a priority partner in arranging investment projects, and in implementing corporate control transactions.
According to the arrangements achieved between the Bank and the company, in particular, the parties intend to consider an opportunity to jointly implement the deal, and purchase Sukhoi Super Jet 100 (SSJ100) from CJSC Sukhoi Civil Aircraft. Today, the project to finance the delivery in 2008 of the two SSJ100 planes for ARMAVIA worth from USD 55 to 60 million dollars is being elaborated.
Cooperation with air carriers is a priority task for VTB. Total volume of credit risks taken by VTB for operations with air carriers over the past two years has exceeded USD 400 million dollars.
ARMAVIA Air Company is a leader of Armenian aircraft market and its national carrier. The company was established in 1996, among its founders were Aviafin Ltd. and Mika Armenia Tradings Ltd . Today, the company offers to its clients the largest in Armenia routes to the cities of Russia, CIS and also of the Middle East and Europe. ARMAVIA makes over 70 regular flights a week to 22 destinations in 10 countries of the world. Airline fleet consists of 4 of Airbus А320, Boeing 737-300, and the planes produced in the Soviet Union, which are engaged in aircraft operation on a leasehold basis, in particular, one Il-86 and two Yak-42. Besides, expansion and modernization work is being carried.
CJSC Sukhoi Civil Aircraft is a subsidiary of JSC Sukhoi Company. It was established in 2000 to implement civil projects of the holding. The starting project of the company is the Program to make new Russian regional planes Sukhoi Super Jet 100. CJSC Sukhoi Civil Aircraft fully controls the cycle starting from designing and working out, marketing and sales, production, certification and after-sale service. Today, the personnel of the company, including branches in various factories in Komsomolsk-on-Amur and Novosibirsk consists of more than 1500 people.