“Georgian Airways” put up for sale because of losses amid pandemic

The management of the “Georgian Airways” has announced a decision to sell the company for 150 million US dollars. The bankruptcy of the air carrier was caused by the losses associated with the closure of the Georgian borders during the pandemic, the court stated.

The “Georgian Business Brokerage”, headed by Roman Bokeriya, the former general director of the “Georgian Airways”, has announced that the company has been put up for sale for 150 million US dollars.

Earlier, the Tbilisi City Court decided to start bankruptcy proceedings for the air carrier in connection with its debt of 176 million laris (about 56.8 million US dollars). Meanwhile, the court took into account that the management of the “Georgian Airways” has a project to overcome the crisis: in particular, flights to profitable destinations.

The court took into account that the implementation of the plans could ensure the rehabilitation of the company, but its owners – David Gaiashvili and the “Georgia Air Service” LLC – decided to sell the company, the “Interfax” reports today.

The air carrier owes more than 16,000 passengers and about 70 companies, and the court concluded that the financial crisis in the airline was caused by the coronavirus pandemic and the closure of the Georgian borders.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on January 18, 2022 at 04:19 pm MSK. To access the full text of the article, click here.