Still negotiating most of its aircraft purchases (550 words)

Published: 10/6/2000

Avialine, the state owned general aviation company plans to extend its flights with plans to open 2 new routes; Belgorod -Kursk - Orel - Tula - Moscow - Tver - Great Novgorod - St.-Petersburg and Minsk - Vitebsk - Smolensk - Moscow - Ryazan - Penza due to strong feedback on the forthcoming launch of its services. Avialine continues to believe that there is good demand for their flights after the 17th October 2000 after feedback from the first flight between Moscow - Tula - Orel- Kursk at the end of August according to Alexander Borisov of Avialine. This demand, Borisov believes, justifies their rollout strategy across Russia, with recent demand for flights within Siberia and in Kaliningrad region. Charters are primarily coming from corporates such as Kurskoblnefteproduct, a subsidiary of the Tyumen Oil Company, for the operator's Yak-40 with VIP salon, part of a Yak-40 fleet of 10 aircraft according to the company. Borisov also said that in October 2000 they would take delivery of 2 single turboprop Myasishchev M-101T Gzhel produced by Sokol. Avialine also says that it has plans to offer new services for what it describes as business tourists offering flights for sightseeing, fishing and hunting. The appropriate aircraft for these missions Avialine believes will be the six passenger twin engined Avia Accord-201 produced by Sokol or the two passenger amphibious Chernov Che-22 Corvette produced by Samara-based Gidroplan or the four seat Il-103 produced by RSK MiG's LMZ plant. According to Borisov, the Il-103 is an ideal aircraft for visiting the Golden Ring of historical monuments at Suzdal. Vladimir, Kostroma, Great Rostov, Yaroslavl and Moscow. With the Accord and Corvette well designed for fishing and hunting trips. The $160,000-$290,000 Accord with retractable floats and according to Avialine is a great amphibian, but currently has the drawback of remaining uncertified; delayed due to funding problems at the end of 1999, although it may be achieved this autumn according to Avia's General Director Alexander Loshkarev. Avialine continues to look at the hard-pressed agricultural sector as a source of business using both the proposed agricultural variant of the Il-103 and the Corvette. The primary reason for optimism in this area being user's increasing problems with the large agricultural An-2 fleet, which are quickly being grounded due to economy, lack of parts and age, with overhaul according to Avialine, a largely unviable exercise for most operators given the costs of using the proposed Avialine service. Currently however, despite flying the demonstration flight in August with a borrowed Il-103, Avialine has no Il-103, although are reported to be discussions to purchase or lease eight aircraft from Ilyushin, Accord-201 or Corvette. Borisov comfortingly adds however, that the acquisition of aircraft will not be a problem for the operator once the service is launched because of its close links with producers. Given the perilous state of general aviation in Russia, Borisov may be right as manufacturers strive to demonstrate their aircraft in regular service on almost any terms given that Avialine represents one of the few potentially viable customers.

Article ID: 2112