Published: 7/24/2000

For those involved in Russian air regulation the last few months have been marked by what can only be described as a state of limbo. It appears however, that the stabilising of that situation is unlikely to occur in the near term. The election of President Putin in the late spring brought a raft of proposed changes, largely aimed at simplifying the complex structure of Russian government butin the case of the air transport industry, opened old enmities and is increasing making a difficult situation worse. The FSVT, long seen by the Ministry of Transport as a lost source of influence after its split from the MoT in 1996, was slated for reincorporating into the ministry although largely retaining its current structure, according to Sergey Franks, Minister of Transport. For those within the FSVT however, the suspicion is that the prime motivation of the change of status had little to do with the streamlining of agencies, but with the desire of the shipping-dominated ministry to gain sway over an industry that even in its depressed state, still has access to considerable funds generated from over flight fees. This view has been supported in the mind of some sources by the fact that despite the announcement of the change almost three months ago, the MoT has not openly discussed the new structure of the agency within the ministry. The retention of the structure has also been a point of contention among those within the FSVT, with a considerable sense of foreboding that their jobs are at risk from a radical reshaping of the agency's structure. This paranoia is fed by recent rumours that those responsible for the air traffic function within the agency have been lobbying the MoT to move the ATC into a separate department. The motivation for the break away being attributed, by sources within the agency, to the military's desire to use the funding generated from the civil system to sustain the crumbling military part of the nominally joint ATC system. Others cite the failure of the FSVT to achieve a consolidated national air traffic company, which was recently criticised by the government watchdog, the Audit Chamber, as contributing to the dissatisfaction with FSVT control, given its failure to fully consolidate the national ATC system as the State Air Traffic Corporation. The Chamber has also made additional claims that the agency has operated in restraint of the development of the industry by giving highly favourable rates to Aeroflot depriving the agency of millions of dollars of revenue and that its lack of control has led to revenue being diverted away from ATC to other non-ATC activities. For the FSVT the uncertainty of its status has had the effect of putting all decisions on hold or on slow track. This has impacted a number of routine licence granting functions and larger programmes such as the Far East ATC modernisation, which has ground to a halt having finally just got underway. Those within the agency are also reporting that dealing with foreign companies is proving to be difficult as they slow down their contact while the situation clarifies itself. In the light of the news in the last few days that the Russian government is currently discussing a joint civil aviation authority with Belarus, and rumours of a Ministry of Railways inspired super transport ministry, this may be a justifiable concern. The future for the control of air transport regulation in Russia remains unresolved, but there is little doubt that given the disintegration of large parts of the industry, the need for its effective operation is increasing rather than declining. The focus should therefore be as an independent regulator that is not seen as a 'jewel' for either the Ministry of Transport or any other agency. The FSVT has its shortcomings as the centralised ATC project has shown, but these problems should be seen in terms of the general political conditions of a country where the incoming president appointed seven individuals, five of them former generals, with the specific task of bringing the regions to heel. It seems therefore unlikely that in those conditions that many government agencies have failed to fully exercise their statutory rights. The criticism of Andreyev, FSVT Director, for the agency's lack of performance and his personal lack of political muscle is justified in part. It should be stated however, that despite the chronic problems of the industry, air transport has largely remained a safe mode of transport in Russia. Lingering indecision as to the future of the regulator can only serve those who would like to weaken control and increase risk by delaying critical improvements to the system.

Article ID: 1955