Kazakhstan will buy 50% of Air Kazakhstan from Kazkommertsbank

/REUTERS, Astana, Raushan Nurshayeva, September 16, 02/ - Government of Kazakhstan intends to purchase from Kazkommertsbank 50% of shares of airline Air Kazakhstan, and make it entirely the state company and cover its debts, said the prime-minister Imangali Tasmagambetov. Air Kazakhstan was founded on the base of bankrupt air transporter Kazakhstan Aue Zholy. Government of the Republic and the largest in the country Kazkommertsbank, which received 50% of the company's shares for debts, became its shareholders. "The decision to buy 50% of shares (of Air Kazakhstan from Kazkommertsbank) in the volume of $15m in the budget for the next year has been made", - said the premier to journalists on Monday. It still has not become possible to get comments from the bank's representatives. Air Kazakhstan, which is burdened with debts and deprived of the possibility to modernize the park, stopped making some flights during this year. Since Monday airline Air Astana, which was founded by the State on parity principles with British BAE systems one year ago started making flights by one of the most attractive routs Alma-Ata - Moscow - Alma-Ata, which Air Kazakhstan made before. For daily Moscow flight Air Kazakhstan used Boeing 737-200 and Tu- 154, which in 2001 made three emergency landings. Moscow direction is also services by Russian airline Transaero, which exploits mainly Boeing 737-700. According to Tasmagambetov's words, the State will assume covering of all company's debts. "Practically we buy 50% of shares, fines and penalties and the main debt of Air Kazakhstan for Kazkommertsbank are redeemed. Thus, 100% of shares pass to the State's possession, it becomes the State company, which have no more debts", - he said. He added that it is planned to join the State air lines Irtysh Avia, which makes flights by internal routs and which has airplanes of better technical resource to Air Kazakhstan, to the share of which about 70% of internal transportation market falls. In the opinion of the prime-minister, the decision to make Air Astana the national transporter was wrong. "The State...took a number of measures, which caused worsening of the situation at air market, i.e. we founded Air Astana, gave this company the most tasty morsels, I mean flights Astana-Alma-Ata, Moscow and other", - he said. According to his words, the decision of the Government to assume care about Air Kazakhstan and to prevent it from bankruptcy is explained by desire to support the country's international reputation. "It will be image matters", - said Tasmagambetov. He also informed that the State will continue subsidizing some air transportations, will attracts credits in order to modernize airports, and also contribute to renewal of airplanes parks. "We also become adult and understand that such the branch as aviation can not exist without support of the State ", - said Tasmagambetov. [2002-09-17]