Alexander Velovich/MOSCOW
THE CIS INTERSTATE Aviation Committee (MAK) is to campaign for state support in an effort to protect domestic airlines from the rising threat to their survival.
Speaking to the heads of the regulatory aviation bodies of the CIS republics at a meeting in Moscow on 11 August, MAK chairman Tatiana Anodina said that the region's civil aviation was in a critical condition.
Referring mainly to domestic operators, she says that they are suffering significant financial losses and are "...incapable not just of competing, but surviving".
MAK reports that uncontrolled growth in fuel prices and airport charges are the prime reasons for the problem. Airline turnover has fallen by 30% since 1990 and MAK says that there is little prospect of a return to former levels in the next ten years.
The condition of CIS airports is also deteriorating, and even Moscow's Sheremetyevo Airport faces the prospect of a shutdown if the Russian Government fails to find 50 billion roubles ($1 million) for runway repairs.
MAK is calling for full international status to be given to flights between the CIS republics, so allowing a 21% reduction of tax payments on profits.
At the same time, the Committee wants airlines to be given the freedom to build their own airport terminals and for the authorities to reconsider taxation and custom duties, for purchases of fuel, spares and aircraft including leasing deals.
Source: Flight International
