Russia’s VIM Airlines faces financial turbulence

Russian authorities are studying VIM Airlines’ route network to determine how other carriers could take over certain parts of it in case VIM must cancel flights because of financial problems. The Ministry of Transport said Sept. 23 it could restrict ticket sales.

Moscow Domodedovo-based VIM has severely delayed several flights. According to Russia’s Prime news agency, the carrier is facing financial difficulties and has not paid fuel suppliers, who refuse to work with the airline.

VIM listed “business entities’ disagreement” as the main reason for a decrease in ticket sales. The airline has had several consultations with authorities and partners to stabilize the situation, VIM said in a statement.

VIM Airlines is the 10th biggest carrier in Russia. From January-September, the airline carried 1.8 million passengers, up 31.4% year-over-year. The airline operates domestic and international, scheduled and charter flights.

In July, VIM signed a letter of intent with Russia’s Ilyushin Finance to lease 15 Irkut MC-21-300s at the MAKS Air Show in Moscow.