Regional government seeks to challenge Domodedovo's monopoly of Far Eastern flights

Published: 2/21/2000

Despite the recent resurrection of flights to the Far East ending their abrupt suspension, following the seizure of Domodedovo Airlines (DA) accounts by the tax authorities, DA has been criticized in a Sakhalin Duma session by the region"s Governor, Igor Farhutdinov. Farhutdinov contends that the airline is using its monopoly on the Yuzhno-Sakhalinsk-Moscow route in order to raise prices arbitrarily and periodically cancel flights. He has therefore proposed that the region leases an Il-62 for local operator, Sakahalin Air Routes, and applies to the FSVT for rights on the route to compete with the Moscow carrier. According to Vedomosti, Alexander Akimov, General Director of DA, responded to the unwelcome criticism with little diplomacy, arguing that the regional carrier cannot compete with DA, owing to the high cost of operating out of Yuzhno-Sakalinsk- its home base - in terms of airport charges and fuel costs that are 1.5 times higher than Moscow. Fuel costs are one of the reasons that Aeroflot has not started its planned flight from Moscow, announced in March 1999 and included in its current schedule. DA will, however, reduce its 7500-ruble ticket price ahead of any possible competition on the route. Perhaps Farhutdinov has achieved some of his objectives already. Associated articles: www.concise.org 23rd March 1999; 5th July 1999; 20th August 1999; 21st January 2000

Article ID: 1451