IFC to buy 100% of Red Wings airline

Red Wings hopes that the deal with IFC will help it strengthen its market position (Photo by Leonid Faerberg / transport-photo.com)

Russian lessor Ilyushin Finance Company (IFC) will become the owner of 100% of shares of Red Wings airline, a spokesperson for IFC told Russian Aviation Insider. The company will buy the airline’s assets from its current owner Sky Invest before the end of the year.

The deal will be closed once the shares are registered, Red Wings general director Yevgeniy Klyucharev told Russian Aviation Insider at the sideline of the Wings of the Future aviation forum. Commenting on the decision to sell the entire 100% of the shares instead of the initially planned 74%, he said that “it would be better, to avoid misunderstandings.”

“The acquisition is being arranged at the same time as debt obligations are partially being transformed into capital. This means we’ll improve our balance sheet and become more financially stable,” Klyucharev said. According to him, being “backed up by such a serious – for Russian aviation – company” will also give Red Wings certain preferences in terms of leasing contracts.

The deal with IFC will facilitate the carrier’s involvement in projects “linked to Russian aerospace industry and with the UAC,” Red Wings executive added.

By Artyom Korenyako and Tatyana Volodina