Published: 10/29/1997

East Line Aviation announced in Volgograd on 10 October that it was starting its first scheduled passenger service four days later, with five return flights a week betwen Moscow-Volgograd using a Yak-42D on an operational lease from Astrakhan Aviation Enterprise. Founded four years ago, with the aim of reviving Domodedovo airport of Moscow, East Line has grown into the biggest Russian cargo operator with annual sales in excess of $1bn (see CP697.1). East Line is responsible for 60% of all cargo traffic between Russia and China. Today, the company represents a net of commercial enterprises providing a full circle of door-to-door cargo services, with the monthly cargo turnover exceeding 10,000 tonnes. Nearly half of that total comes from Il-76, An-124 and An-12 freighters operated by East Line Aviation joint-stock company. Established in 1997 by East Line group members, the operator is a successor to East Line Air registered with the Federal Aviation Service (FAS) on 8 February 1996. The carrier makes 300 flights monthly to Belgium, Turkey, China, Arab Emirates, Italy, Korea and India. Except for being a large cargo operator, the company is well-known to tourist agencies for flying regular charters to Turkey, Pakistan, India, Greece and Italy. The monthly passenger traffic on those routes, average at 5000-10,000 passengers, rising up to 15,000 in the height of the tourist season. Currently, East Line Aviation has a fleet of eleven Il-76s, two Tu-154s, one Il-86, one An-12 and one Yak-42. Moreover, up to 50 airplanes, mostly Il-76s, are hired from other operators. Amiran Kurtanidze, general director,says that a detailed fleet renewal programme will be prepared by the end of December. He continues, "As of today, our inventory consists only of Russian-made aircraft, with the main type being the Il-76. East Line continues studies on the Il-96M and Il-96-300 airliners manufactured in Voronezh, as well as the Tu-214 in Kazan. We have also had contacts with Boeing and Airbus. On 15 October a vast delegation from Airbus is visiting us and, seemingly, we will talk about their airliners." Kurtanidze added that at one time there was an idea to lease a couple of DC-10s. "Unfortunately, there are very few good planes of this type on the market. We consider East Line a high-class company, and, therefore, will never accept the airplanes that stand in the Nevada desert as did a certain Russian operator." East Line is also considering increasing its Yak-42 fleet, finding the type" affordable in terms of fuel burn and very cheap to buy." Kurtanidze claims that a market study showed that the Yak-42 would be the best solution for the Moscow-Volgograd route. He explains, "Boeings and Airbuses are fuel-frugal but expensive. We are pragmatics, and our pragmatic approach to business led to choosing the Yak-42." Before entering service with East Line, Yak-42D registration RA-42417 underwent modernisation at the repair factory in Bykovo, during which its passenger cabin was considerably improved. Instead of 120 seats in the factory's standard layout, the airplane has a business compartment for 12 passengers and economy-class one with 86 seats featuring improved ergonomics. Unlike the majority of ordinary Yak-42Ds, new kitchen equipment on the RA-42417 provides all passengers with hot food. Kurtanidze says that if something happens to the RA-42417 in Moscow, it will be replaced by a Tu-154. Moreover, East Line has an agreement with Astrakhan Aviation Enterprise on provision of a Yak-42 in case something goes wrong with the RA-42417 in Volgograd. Speaking on behalf of FAS, deputy director Anatoly Bondarev confessed that the Service gave East Line permission to fly to Volgograd "not occasionally". Firstly, he explained, East Line promised to invest into the infrastructure of the local airport. Another reason was that the company is "popular not only with passengers, but also with the Government". Last year, Prime-Minister Victor Chernomyrdin himself opened East Line's cargo terminal in Domodedovo airport and promised to open the second one in November this year. According to Bondarev, Volgograd-based Volga airline is in a bad financial situation and might be declared a bankrupt shortly. If so, East Line would keep the air routes leading to the one million population city alive. FAS is also relying on East Line in reviving Volgograd airport and the whole of civil aviation of Volga region in the ways of "healthy competition". Bondarev says East Line has enough experience and resources to develop infrastructure of the airport and provide local travellers with world-class services. Kurtanidze is optimistic about the future of the Volga region, expecting a rise in the air traffic to come by the turn of the century. "We see a market existing here right now. Our aim is to provide the passengers with high-quality services", he said. According to Kurtanidze, East Line Aviation has appointed Almarov, former Volga general director, as head of its newly-established branch in Volgograd. Currently, the annual air traffic between Volgograd and Moscow stands at 70,000-75,000 passengers. Volga airline maintains a daily Yak-42 service to Domodedovo, selling one-way ticket for Rbs650,000. This is twice as much as rail. East Line set the price for one-way economy-class ticket at Rbs500,000 initially, but is going to increase it to a "reasonable level" after the market is established.East Line has plans to open new scheduled services from Domodedovo to Central Russia and CIS countries after acquiring new airliners. Flights will also be opened to Far East and in the westerly direction, says Kurtanidze, refusing to specify the destinations "in order to prevent a battle with other operators for the appropriate licences". (AL1097.3) (VK)

Article ID: 68