Continued strong performance from airline in a subdued market(360 words)

Published: 10/27/2000

Volga-Dnepr Airlines, has released its results for the first nine months of 2000 showing sales increasing by 26.1% in the period over 1999 and an increasing share of the An124-100 market rising from 52.9%in 1999 to 59.1%

According to Volga Dnepr the heavy lift market overall has been quieter than 1999 reflecting the absence of the markets in the Balkans, East Timor and the earthquake in Turkey, which brought high levels of heavy lift business in the first nine months of 1999. Despite this fact however, the airline has shown substantial growth In 2000. VD has continued to fulfil contracts for the UN with a few shipments to Sierra Leone and East Timor. Other emergency contracts have included the shipping of emergency equipment to France and helicopters to Mozambique.

The airline has however, continued to generate the major share of its business from industrial customers particularly the aerospace and automobile industries. The aerospace industry being a major provider of work in 2000 though transportation of launch vehicles and satellites

The steady rise in the oil has also brought some benefits for the Ulyanovsk based carrier, with steady growth in equipment transportation from the refining and exploration sectors. In the first nine months of 2000 VD shipped oil equipment from the US to Kazakhstan, Azerbaijan and Russia.

While oil price rises were good for business however, they did impact on the airline's third quarter financial results against the same period in 1999. Higher fuel prices substantially increased operating expenses and the fall of European currencies against the dollar while increasing export business for the carrier reduced cargoes coming into Europe. Sergey Shklyanik, VD's Director of Strategy says that the airline plans to "further expand its An-124-100 fleet, modernize its aircraft to the highest international standards and continue to improve the quality of customer service".

In its official release of its results VD is obviously eager to scotch recent rumours of disagreements between Volga-Dnepr and with Heavy Lift over it's UK based joint venture. , Commenting that the results "proves the success of Heavy Lift-Volga Dnepr recognized as one of the most fortunate alliances in the industry".

Article ID: 2161