Volga-Dnepr implements restructuring plan as it reveals declining results

posted on 23rd August 2019 by Justin Burns
Volga-Dnepr implements restructuring plan as it reveals declining results

Volga-Dnepr Group has implemented a restructuring plan aimed at quality enhancement, cost reduction and development of specialist services, amid the announcement of below expectation results for the first half of 2019.

The Russian air freight group is made up of three air cargo carriers; AirBridgeCargo Airlines (ABC), Volga-Dnepr Airlines (VDA) and ATRAN airlines (ATRAN).

As part of restructuring, Nikolay Glushnev has been appointed as general director of ABC. He has more than 14 years of experience in air cargo sector and held various positions within ABC, including director operations. His key focus will be to restore ABC customers’ confidence.

The restructuring comes after the Volga-Dnepr Group reported in the first half of the year, that cargo volumes fell six per cent to 2.5 billion freight tonnes kilometres, 20 per cent below expectations and budget.

These results were blamed on the declining world cargo market, overcapacity and operational hurdles, which it said prevented the profitability of the Group’s businesses. Volga said the restructuring will allow the Group to get back to the growth strategy this year.

Volga-Dnepr Group operates a fleet of 41 freighters (12 An-124-100, 5 Il-76TD-90VD, 18 Boeing 747F, and 5 B737F).