Airlines seek resolution over airport charges

Published: 4/12/2000

Transaero and Azerbaijan Airlines (AZAL) have become involved in a dispute over $568,000 of unpaid maintenance bills incurred at Baku's Airport Bina during Transaero's four-year use of the airport. AZAL says that it intends to file a suit in the Russian arbitrage courts, while Transaero accepts the debt and argues that it is looking for a solution. Transaero stopped using the airport last year, after a dispute relating to raising of various fees that, it argued, breached a bilateral agreement between Russia and Azerbaijan. Since then, a number of airlines have stopped using the airport, claiming that charges are too high and that prepayments in cash, instituted after the August crisis of 1998, make the environment a difficult one in which to operate. This is particularly so when combined with local work practices described as providing a 'modest level of service'. According to AZAL, Transaero"s outstanding bills account for 50% of debt at the airport. Unofficial reports say that AZAL has refused to accept servicing of AZAL aircraft by Transaero in Moscow as a means of clearing the debt, although the current restrictions on AZAL flights across Russian territory, for non-payment of the ATC debts could pose problems in this respect. It is believed that AZAL would prefer the debt to be offset against the $3.5m of ATC debts. The management of both companies are due to meet in April and sources within Transaero believe that the situation can be resolved.

Article ID: 1591