Lack of solvent customers leads Irkutsk Aircraft Repair Factory 403 into the airline business (420 words)

Published: 8/10/2000

In what is becoming an increasing trend in Russian air transport another aircraft repair plant as a result of the collapse of its customers or simple insolvency, has established an airline. In this case Angara Airlines has emerged in the colours of the Irkutsk Aircraft Repair Factory 403 making its first flight on the 31st July, when one of its An-24 flew from Irkutsk to Bratsk.Subsequent flights over the first ten days of operation flying to Bodaibo with full loads according to the airline. According to the General Director of the Irkutsk Plant 403, Vladimir Zyuzin, Angara is not going to compete with airlines operating out of Irkutsk airport, who are attempting to squeeze Baikal and Sayany Airlines, , out of the profitable routes to Moscow, China, Japan, pushing out the local carriers. The goal of Angara, according to Zyugin, is to develop a share of the market in the intra regional market, targeting those passengers who are finding it increasingly difficult to travel form the regional centre Irkutsk to Yerbogachen, Bodaibo, Mama, Kirensk, and Kazachinsk, as the small airlines historically servicing these cities have found their aircraft grounded with little working capital to get them flying. The Chairman of the plant Igor Kalinichenko reports that the decision to get involved in the airline business was prompted by the fact that the plant was undertaking overhaul and repair work on An-24s for clients who simply were unable to pay, depleting the plant's resources as it was required to fund much of the material involved. The plant management then felt that the establishment of an airline was the only viable alternative and set out to set the airline up and become certified.According to Deputy Executive Director of Angara Petr Teterin,the new airline's fleet now consists of three An-24s and one An-26, which have been aquired on short leases in lieu of payment for overhaul.The plant believes that it can aquire additional aircraft from airlines with aircraft that are not serviceable and overhaul the airframe and provide new engines. According to Anatoly Yurtayev, Executive Director of Angara, although there are other carriers on the routes, the airline feels that capacity is insufficient to meet demand particularly in the summer period. Additional flights als may be added to Chita, Novosibirsk and Ulan Bator in Mongolia. The crew for the new airline have come from the labour shedding at Baikal, which has cutback heavily on its flight crew in line with cuts in its coverage. The first airline to have declared about its intention to cooperate with Angara is the Bratsk Airlines, currently under administration, and whose external manager Anatoly Pripuzov sees the survival of the airline dependent on its relationship with Angara as its two Yak-40s life limits expire within the year leaving the carrier without a serviceable fleet. Bratsk is also not considered to be an attractive prospect with little coverage of the city by airlines.

Article ID: 1982