Government of Kazakhstan wants to return a full control over Air Kazakhstan

/REUTERS, Astana, Raushan Nurshaeva, March 25, 02/ - The Government of Kazakhstan plans to purchase out 50 percent shares of national airline company Air Kazakhstan from its main creditor - Kazkommertsbank - having returned to airline company a state status, said the vice-premier Karim Masimov. "We are currently negotiating with the shareholders of Air Kazakhstan in order the Government to purchase out shares of these shareholders to make the company Air Kazakhstan state one and make some preferences with respect to it," said he to deputies on Monday. "The issue is important. The matter is prices, the Government has said one figure, the shareholder - Kazkommetsbank - another one, and it's a normal trade," Maimov added later answering questions of the journalists. He refused from more detailed comments. The state lost the control over Air Kazakhstan I the year 2000 when due to the debt to Kazkommertsbank for the amount of about $20 million the company almost became a bankrupt. The Government at that time transferred to the bank 50 percent shares of Air Kazakhstan and promised to give under control a state block of shares that hasn't been done. Former high rank governmental official didn't exclude a possibility of a bankruptcy of unprofitable Air Kazakhstan. In its turn, Kazkommertsbank to which the transporter owes about $30 million announced earlier about readiness to restructure the debt "for ten years" and invest into the company's development. Masimov said deputies that the Government after resolving the issue of ownership of Air Kazakhstan in favor of the state intends in nearest time create a large national airline company. "In the sphere of civil aviation soon there will be created a consolidation, a creation of a large national company with the support of the state from the point of view of acquisition of aeromechanics and maintenance of the airports," he said. Vice-premier Masimov who is now an acting minister of transport and communications admitted mistakes of the state in the sphere of civil aviation but however doesn't lose optimism. "We have made a lot of mistakes in civil aviation sphere for last ten years but situation is not hopeless it is progressing," said Masimov. KAZAKHSTAN WILL RENEW AVIAFLEET Masimov noted that the airline company Air Astana in which 50 percent shares belong to Kazakhstan and British BAE system acquired for leasing three new airplanes Boeing 737-700 that start flying from April 20 already. Besdies, the Government has agreed with Russia upon an acquisition until the end of this year of five-six new YAK-42D, which will be used for internal air roots. Now, according to Masimov's data, there are 47 airline companies in Kazakhstan. Since the ministry of transport and communications raised qualification requirements to airline companies their number may substantially decrease. "If the company has one tumbledown airplane it cannot be called a company," said Masimov. He also announced that the state intends to save Air Kazakhstan as well as Air Astana. "Both companies will live; in which form it will take place - whether they will work as unified holding or will merge into one company or will work as two separate companies - time will show," he said.