Cargo carrier's fleet grounded by raids related to contraband carriage (700 words

Published: 9/21/2000

East Line Airlines based at Domodedovo Airport has been raided by the Russian security service, the FSB, who have removed computers, files and have sealed the warehouses of the Russia's largest cargo carrier, with FSB agents reported to be remaining on the scene until the investigation is complete. The raid, which took place on Tuesday involved similar raids on other companies within the East Line Group, which includes control of Moscow's Domodedovo Airport among its many holdings. The reason for the raid according to reports, is an investigation of an East Line aircraft involved in carrying contraband from China to Russia, uncovered during an inspection after an emergency landing in Siberia earlier this year. The General Director of East Line Amerani Kurtanizde at a hastily convened press conference vehemently denied the charge of knowingly carrying contraband yesterday. The searches at the airport according to Kurtanizde are under a warrant investigating contraband, but other searches of the group's travel agency are on “other grounds” Currently all East Line's cargo flights to China and some other destinations by the airline are suspended, but the airline's passenger services continue to function form the passenger terminal of the airport. The FSB have allowed one employee to operate from the cargo business's office and a temporary control has been established elsewhere. East Line Airlines, Russia's largest cargo carrier with a fleet of over 50 cargo and passenger aircraft, has been under investigation since the Il-76 was found overloaded in May when flying from Shenyan Airport in China to Domodedovo after an incident involving the striking of lamp posts at Irkutsk. The plane was inspected at Kogalym Airport where investigators found that the payload was 1.5 tons higher than declared, although not exceeding the manufacturers limits. The investigation was however, concluded with no charges for crew and airline as the weighting of the aircraft was the responsibility of the Chinese personnel at Shenyan Airport. Although the authorities, in response to this and other incidents, did impose a ban on such flights from China, which was only lifted a month ago. The cargo of Chinese-made watches and clothing however, valued at $0.5 m, was confiscated as contraband. The current action by the FSB is believed to be illegal, by East Line, as the prosecution of contraband cases is the responsibility of the State Customs Committee, which has taken no action against the carrier. Kurtanidze also has doubts that the reasons under which the FSB has stopped over 100 East Line flights to China and left 16 East Line aircraft in China are solely motivated by contraband. Unable to bring cargoes back, Kurtanidze estimates the cost to the airline could be as much as $70,000 per aircraft. If the restrictions continue however, and licences are not used for three months, the airline could possibly lose its route licenses and have them transferred to another carrier according to Kurtanzide. With regard to the Siberian incident Kurtanidze claims that “it is absurd to accuse an airline of carrying contraband because we have always transported only those cargoes that had been given to us by our clients who are trade-forwarders. We have not carried cargoes from China for the airline itself”. Kurtanidze when questioned however, declined to reveal the name of the trade-forwarders for the cargo confiscated in Kogalym because “this is a commercial secret”. The reason for the actions at Domodeedovo will undoubtedly be the subject of intense speculation over the next few days and will include rumours of the revenge for the forcing of cargo carriers to cease using Ramenskoye Airport at Zhukovsky by the FSVT, a move speculated to have been engineered by East Line , who then benefited from the carriers transfer to Domodedovo. Additionally there have been continuing stories of a church charity controlled freight company controlled by Gulya Sotnikova trying to gain control primacy of the Chinese trade, which resulted in heavy delays early this year due to tightening of customs inspections. Whether the FSB actions are related to the latter activities is unclear, but the lucrative trade has in the past been played high stakes and seems likely to be so in the future.

Article ID: 2083