Since July 2010, VTB has issued twenty standby letters of credit to UTair company exceeding USD 8.5 mln in total, within the previously set credit limit. The company uses the L/Cs to perform its contract obligations to supply Bombardier CL600-2B19 (CRJ200LR). Besides, three more standby L/Cs were issued for the company totaling USD 7.5 mln to perform its contract obligations to provide maintenance services for Boeing 737-500.
By this April, the Bank plans to open six more standby L/Cs for USD 2.5 mln to supply Bombardier CL600-2B19 (CRJ200LR).
Documentary business lies in the core of cooperation between the Bank and the air company. VTB takes an active part in financing UTair purchases of new aircrafts within its program aimed at air fleet replacement.
UTair is one of Russia’s largest carriers placed 2nd in terms of passengers transported on domestic routes.The company’s total profit in 2010 is expected to reach RUB 40 bln which is a 20% increase against 2009. Passenger turnover over the last year grew 37% as compared with 2009 and exceeded 7.98 bln passenger kilometers. Over the same period, UTair transported more than 12 thousand tones of freight (a 21.1% increase against 2009) and more than 3.5 thousand tones of mail (a 79% increase).