The Russian Government intends to drastically reduce the number of companies operating in the air transport field in the next 12 months from the current level of 299 to 70.

The move comes as the country ended its tenth successive year of falling traffic. From 90.5 million passengers carried in 1990 by the Russian sections of the then united Aeroflot, the total traffic has tumbled to 19.5m. Aeroflot Russian National Airlines carried 4.9 million of these, with the top 45 airlines carrying 92% of the total.

Although the number of airlines is quoted as 299, these are in fact air operators. Only 125 are licenced to carry passengers, another 43 are specialist cargo operators. The rest include air taxi companies, flying schools, medevac, search and rescue units and even some air force units licenced to fly commercially.

Minister of Transport Sergei Franke says the reduction will be achieved by raising certification standards and, with the economic situation now resulting in losses for most carriers, examining their financial resources.

Airlines are already reacting to potential government intervention and financial pressures by developing partnerships and alliances in order to reduce costs.

Source: Flight International