Ukraine's leading English-language newspaper since 1995

Ukrainian billionaire Igor Kolomoisky has taken control over Aerosvit, a major Ukrainian airline. But his plans for its development are yet unclear. (UNIAN) New owner could revitalize airline which is deep in debt, hit by recession.

Igor Kolomoisky, the Ukrainian billionaire, has consolidated majority ownership control over Aerosvit, one of Ukraine’s top two airlines, a Ukrainian official said on Nov. 18.

Dmytro Parfenenko, acting head of Ukraine’s State Property Fund, which owns a minority 22.3 percent stake in the debt-laden airlines, said that Kolomoisky bought a majority stake in the company from a previous owner, Israeli national Aron Mayberg.

The value of the deal was not disclosed, but Parfenenko expressed relief that a deal had been reached, saying: “Thank God that the non-state shareholders have reached an agreement.”

Rumors have spread in recent weeks that the airline was sinking into financial trouble and could face bankruptcy. Experts also raised concern that the state privatization agency could auction off the state’s stake at a fire sale price. Kolomoisky heads one of Ukraine’s largest business groups, known as Privat. Along with partners, he controls a multi-billion-dollar diversified portfolio of assets in Ukraine and abroad. His plans for Aerosvit remain unclear, but the group has the financial muscle to revive the airline, which has recently backed out of several lease agreements on Boeing aircrafts but still operates 13. The airline has suffered from falling sales during this year’s recession.