Russia's Yakutia Airlines secures $10.5mn in state subsidies

Yakutia Airlines will receive 800 million roubles (USD10.57 million) in state subsidies from the government of the Sakha Republic (Yakutia) to cover its leasing costs for this year.

CEO Olga Fedorova told Russia's TASS news agency that the airline's financial health is a key concern for both management and government.

In line with plans to increase its share capital and attract a strategic investor, the carrier also hopes to reach a deal with Sukhoi Civil Aircraft (Moscow Zhukovsky) concerning the restructuring of outstanding debt.

The carrier is pushing to restructure its leases into rouble-denominated agreements to help cushion the impact of a strengthening US dollar.

Last year, Yakutia retired a number of Western-built aircaft including B737-700s, B737-800s, B757-200s, and Dash 8-400s citing a decline in demand for domestic travel coupled with cutbacks in Russian federal funding and the weakening rouble.

It currently operates three B737-800s, one B757-200(F), two Dash 8-300s, three Q400s, and two SSJ 100-95s.