December 20, 2006 – LAWFUEL – Legal News, Legal Jobs – Chadbourne & Parke LLP represented the European Bank for Reconstruction and Development (EBRD) in a deal to acquire a 20% stake in Russia’s first low-cost airline, Sky Express.
The stake was acquired through an investment of $10 million. The deal was signed on December 18.
The bank’s investment in Sky Express is expected to rise in several stages and could go up to $20 million, EBRD said. The airline’s start-up capitalization is $48 million.
Working on the deal for Chadbourne were Moscow office managing partner Laura Brank, London partner Jennifer Handz and Moscow associate Dmitry Gubarev.
Sky Express’ other shareholders include Boris Abramovich, general director and a key shareholder of Russia’s Krasnoyarsk Airlines, who owns a blocking stake in the new airline.
Sky Express, which will be based at Moscow’s Vnukovo airport, is to have a fleet of 18 Boeing-737s by late 2007. The company projects its passenger traffic at about 600,000 people in January-June 2007 and at 3.5 million people by late 2008.
Sky Express will operate only in the Russian market, with flights to St. Petersburg, Rostov-on-Don, Yekaterinburg, Volgograd, Kaliningrad, Samara and other cities.