Centre-Avia looks to breakeven in 2001(338 words)

Published: 4/24/2001

Centre-Avia, spun out of Bykovo Avia,owned by the Bykovo Airport has incurred losses of Rb29.3m or $1m in 2000, having started its operations in March 2000. The losses according to the airline reflect the launch costs and re-quipping its aircraft to meet ICAO standards. Winner of the Wings of Russia - 2000 “Lucky start” award, the airline believes that it will break even in 2001 on the basis of doubling its revenues through increasing its traffic to over 300,000 passengers over the 156,484 passengers carried between March and December 2000. Despite opening new routes in 2001, the airline has stated that it believes it will be able to control its costs through the use of leasing of aircraft in a deal with Aviatechnologia that provides for back up aircraft under an AMI lease agreement within three hours. Aviatechnologia is a fellow member of the AT Alliance, a curiously described non-commercial partnership of aviation and metallurgy companies including theBykovo Aircraft Repair Plant and Stupino Metal Plant. Centre-Avia Airlines started operations on the 3rd of March 2001 and operates from Moscow's Bykovo and Domodedovo airports and from Magnitogorsk. It operates regular routes from Moscow to Anapa, Gelendzhik, Volgograd, Magnitogorsk, Rostov-on-Don, Stavropol, Ufa, Hanover, and Stuttgart. From Magnitogorsk it flies to Yerevan, Mineral Waters, Anapa, Sochi. The company has 2 Tu-204; 25 Yak-42D; 3 Yak-40; and 1 An-24 in its fleet. According to the airline they have focussed on the aircraft mix within its fleet on the Yak-42 because it believes that the aircraft can be operated profitably on medium to short haul routes. Something it does not believe the other major Russian aircraft the Tu-154 and Tu-134 can achieve, due to a number of factors including fuel economy and failure to meet noise and emission standards for operation outside of Russia. The company's shareholders include the Bykovsky Aircraft Repair Plant (29.40%), Bykovo Airport (19.95%), MRIK Investment company (19.95%), Depository Clearing Company (19.95%), Resourcetrustbank (10.75%).

Article ID: 2510