Audit Chamber calls for swift remedies (280 words)

Published: 7/19/2000

Russia's Audit Chamber, responsible for monitoring Russia's state entities, has issued a report criticising the speed at which the State Air Traffic Management Corporation was formed in the late 90s under the supervision of the FSVT. The State Air Traffic Management Corporation was originally established in 1997 with the intention of unifying the disintegrating regionally managed ATC service into one coherent national corporate structure. The Corporation however, according to the Chamber, failed to achieve that consolidation of regional air traffic control service ventures into one unified operation and gain control of the country's ATC equipment and facilities. The entity, in the Audit Chamber report, is also accused of encouraging a financing system that encouraged regional entities to inflate their costs and use funds for activities other than ATC services. Additionally the entity is reported to have misappropriated funds from over flight revenues and offered substantial discounts to certain carriers. Aeroflot is reported to have received discounts of 50%, with the effect of substantially reducing the revenues that might be available for the upgrade of the system. The Chamber also regarded such deals to be a clear violation of the country's anti-trust laws by giving unfair advantage to certain carriers. The main focus of the report however, is the current poor condition of the ATC system given the age of the equipment and a replacement schedule which is behind the Federal plan for renewal, making the system increasing less safe in the view of the Audit Chamber. The chamber called upon Transport Minister Sergey Franks, now responsible for air transport since recovering control of the FSVT, to swiftly remedy the situation.

Article ID: 1947