Kharkiv Airlines sold for Hr 1.2 million, buyer not named

The State Property Fund (SPF) of Ukraine has sold 99.99% of shares of public JSC Kharkiv Airlines for Hr 1.2 million. The shares were sold on the PFTS stock exchange, the payment for the securities is to be transferred in the near future, the SPF said in an announcement on June 6.

The SPF did not disclose the name of the buyer of Kharkiv Airlines.

Since the beginning of the year, the SPF has obtained Hr 21.9 million from the sale of shares on stock exchanges.

Kharkiv-based state owned Kharkiv Airlines was set up in July 1998 through singling out assets from Kharkiv-based state owned airlines, and was reorganized into OJSC Kharkiv Airlines in December 2001.

According to the SPF, the charter capital of Kharkiv Airlines is Hr 17.34 million; however the company's net worth as of the end of 2011 stood at Hr 1.33 million due to accumulated losses. The company's current liabilities totaled Hr 3.7 million with the book value of the fixed assets estimated at Hr 4.29 million. The company owns 10 real estate facilities part of which are leased by New Systems AM LLC owned by businessman Oleksandr Yaroslavsky, who is the key investor of Kharkiv Airport.

Kharkiv Airlines' net revenues in 2011 rose by 31%, to Hr 770,000, while its net losses jumped by 27%, to Hr 730,000. In its annual report, the company pointed the need to attract an investor, noting that it is inexpedient to modernize its aviation equipment and aircraft.