50% of aircraft out of operation

Published: 5/3/2000

The air transport situation in the regions covered by the Volga Interregional Department of the FSVT( the Chuvashia and Mordovia Republics and the six regions of Samara, Saratov, Ulyanovsk, Penza, Nizhny Novgorod and Orenburg), an area of 500,000 square kms and 17m people, has deteriorated dramatically in the last five years. In a submission made at a conference in February organized by the Greater Volga Association, which covers the regions and attended by the General Directors of airlines and airports and Victor Gorlov of the FSVT. It was reported that air flights had fallen by 50% in the five year period, driven down in part by the general economy, but also by rising fuel prices, which had rendered the existing fleet of An-24, Yak-40 and Let-140s unviable due to their high fuel consumption and vulnerable to competition from cheaper albeit slower forms of transport such as trains, cars and river ships. The result of the falling traffic, which saw only 680,0000 passengers in the region in 1999, has been a decline in the utilizations of airport assets to a reported 60% of capacity, with the major hubs in the region in Samara, Nizhny Novgorod, Saratov and Orenburg contributing over 95% of the current traffic. Samara, by the far the largest of the airports with 57% of traffic, was the only airport to operate profitably in 1999, with the sector overall experiencing collective losses of 130m rubles. The number of pilots in the region has fallen by a third in the period and the average age of personnel is growing steadily due in part to the reluctance of pilots to retire due to insecurity about their pension funds. This means there is little demand for newly qualified pilots and there are now more pilots in the region over the age of fifty, than under thirty according the FSVT. The falling number of flying hours has also been cited as a potential cause of air accidents, of which 40% in 1999 were attributable to pilot error. The principle concern expressed by the association however, lay in the condition of aircraft, which was attributed as causing 50% of accidents, a situation, which was seen as likely to continue as falling revenues among even the most successful of the region"s airlines, led to falling standards of maintenance. Of the 140 transport aircraft and 205 helicopters and An-2 based in the region at the beginning of 2000, according to the FSVT, only 50% of the transport aircraft were operational with helicopters and An-2 even lower at 40%, primarily due to lack of funds for overhaul. Looking forward over the next five years half of the region"s Tu-154Bs, Tu-134s and An-12s will be written off, with a third of An-24s going and almost all the Yak-40s. The problems with operable has also spelt the end for some of the region"s smaller carriers with Simbirsk Avia, Penza and Balakovo recently having their licenses cancelled. Their operations absorbed into the region"s larger carriers. According to Big Volga, there are a number of measures that have to be taken to halt the slide of the industry, particularly the airports and bring about its improvement: -division of airports and airlines into separate entities to create better visibility and a more competitive environment, Penza, Ulyanovsk-Cetrainy, Balakovo, Cheboksary,Sransk and Orsha. -giving the regions control of the airports and provide regional funding for them -align the airport system under the Big Volga association -develop a programme for airport improvement -attract foreign investment to the airports -regional support for leasing of aircraft produced in the Greater Volga Association The conference concluded that a further meeting with the various regional governors and the Federal Council should further address the pressing issues for the sector. The conference recommendations give little reason to believe that we are likely to see dramatic change in direction of the sector, as the parties appear to see changing of ownership or control as a substitute for action in the sector.

Article ID: 1550