Paul Duffy/MOSCOW
Russia's civil aviation industry has begun to suffer serious losses, including bankruptcies and lease cancellations, as a result of the economic and political turmoil which has hit the country in the last month.
Transaero is to return two of its three McDonnell Douglas DC-10-30s to lessor AGES and two of its five Boeing 757s, leased from GE Capital Aviation Services and International Lease Finance. This follows a management decision that the airline should concentrate its operations on smaller aircraft, such as the Boeing 737.
Baikalavia of Irkutsk, Siberia, has been declared bankrupt by local courts, and services to the city will be maintained by a newly formed airline with links to Chita Avia, Sakha Avia and some Irkutsk aviation interests, to serve the region at a reduced level.
Much of the airlines' problems are the result of a collapse in passenger traffic. In the first 10 days of September, traffic dropped by 26% at Moscow airports, 30% at St Petersburg and 50% at Novosibirsk Airport, Siberia.
The airlines have been stricken by a variety of financial woes in addition to the collapse of demand. Aeroflot Russian International Airlines (ARIA) was forced by a government order to sell foreign currency to the state, making it difficult to pay for lease commitments and external expenses, although the airline has indicated it will be able to meet these payments.
ARIA has appointed a crisis committee to revise working agreements with banks servicing the airline's accounts and review timetables to make sure seat utilisation is efficient. General director Valery Okulov says that the airline, the largest user of Western aircraft in Russia, will look for more locally produced spares and consumables to reduce hard currency requirements, as well as laying off staff.
Source: Flight International
