gyrohead
23rd Jul 2001, 18:11
From The Sunday Times 22 Jul 2001.
Aeroflot prepares an Irish take-off
Tom McEnaney
Kane: Irish consortium head
THE Russian airline, Aeroflot, is working with a consortium of Irish businessmen to establish a new airline in Ireland.
The operator, which is expected to be based at Shannon, will run services to Moscow, but will mainly be used to to fly between Russia and the Middle East and North Africa.
Tom Kane, the American owner of the luxury Limerick hotel, Adare is leading the Irish consortium. "We've been working on this intensively for the better part of six or seven months," he said.
Kane flew as an American marine combat pilot in Vietnam before setting up his own investment bank in America. "I have a love affair with planes," said Kane, who bought Adare Manor in 1987.
European Union rules stipulate that EU airlines must be majority-owned by concerns within the union. For this reason, the new airline will be 49% owned by the Russian airline, with the majority held by the Irish consortium. The full membership of the consortium, which is being advised by former GPA executive Niall Greene, is not known.
The new company will begin operating with 10 new planes, a combination of 737 400s and 737 700s. These aircraft are particularly suited to flights lasting four to five hours.
According to Aeroflot sources, the company expects to make an announcement on the new airline in three weeks' time. Kane says that timetable may be optimistic. "We still have quite a few legal and regulatory hurdles to cross," he said.
The Irish move grew out of Aeroflot's attempts to buy the Irish division of Virgin Express earlier this year. By buying the new aircraft through the Irish company, Aeroflot will avoid the 56% import tax due on aircraft imported into Russia from the West.
The new airline has not yet secured a licence from the Irish Aviation Authority. Aviation sources said the authority would have to be sure the new company is operating a substantial business out of Ireland.
The new company's fleet of planes will be based and maintained in Ireland.
As well as Irish legal and regulatory concerns, the setting-up of the operation is likely to be complicated by domestic concerns for Aeroflot. Last Friday, the Russian prosecutor-general's office announced it had charged four people in relation to the alleged embezzlement of $252 (IR£228) from Aeroflot. The men charged include Aeroflot's former first deputy-director, Nikolai Glushkov, who is also charged with money laundering.
Founded in 1923, Aeroflot accounts for about 31% of passenger traffic carried by Russian airlines. Its shares are traded on the Moscow exchange and it hopes to be listed on the London Stock Exchange later this year.
:rolleyes: :rolleyes:
Aeroflot prepares an Irish take-off
Tom McEnaney
Kane: Irish consortium head
THE Russian airline, Aeroflot, is working with a consortium of Irish businessmen to establish a new airline in Ireland.
The operator, which is expected to be based at Shannon, will run services to Moscow, but will mainly be used to to fly between Russia and the Middle East and North Africa.
Tom Kane, the American owner of the luxury Limerick hotel, Adare is leading the Irish consortium. "We've been working on this intensively for the better part of six or seven months," he said.
Kane flew as an American marine combat pilot in Vietnam before setting up his own investment bank in America. "I have a love affair with planes," said Kane, who bought Adare Manor in 1987.
European Union rules stipulate that EU airlines must be majority-owned by concerns within the union. For this reason, the new airline will be 49% owned by the Russian airline, with the majority held by the Irish consortium. The full membership of the consortium, which is being advised by former GPA executive Niall Greene, is not known.
The new company will begin operating with 10 new planes, a combination of 737 400s and 737 700s. These aircraft are particularly suited to flights lasting four to five hours.
According to Aeroflot sources, the company expects to make an announcement on the new airline in three weeks' time. Kane says that timetable may be optimistic. "We still have quite a few legal and regulatory hurdles to cross," he said.
The Irish move grew out of Aeroflot's attempts to buy the Irish division of Virgin Express earlier this year. By buying the new aircraft through the Irish company, Aeroflot will avoid the 56% import tax due on aircraft imported into Russia from the West.
The new airline has not yet secured a licence from the Irish Aviation Authority. Aviation sources said the authority would have to be sure the new company is operating a substantial business out of Ireland.
The new company's fleet of planes will be based and maintained in Ireland.
As well as Irish legal and regulatory concerns, the setting-up of the operation is likely to be complicated by domestic concerns for Aeroflot. Last Friday, the Russian prosecutor-general's office announced it had charged four people in relation to the alleged embezzlement of $252 (IR£228) from Aeroflot. The men charged include Aeroflot's former first deputy-director, Nikolai Glushkov, who is also charged with money laundering.
Founded in 1923, Aeroflot accounts for about 31% of passenger traffic carried by Russian airlines. Its shares are traded on the Moscow exchange and it hopes to be listed on the London Stock Exchange later this year.
:rolleyes: :rolleyes: