Airline's performance still undermined by regional economy (163 words)

Published: 6/13/2001

The regional airline of Archangelsk GUP, the 2nd Archangelsk Aviation Airline (2nd AOAO), has recently launched a new international charter flight, from Archangelsk to Oulu in Finland, using an L-410. According to Yury Davydov, General Director, the airline has experienced good growth of 10% in Q1 2001, despite the poor state of the region's economy. He is confident that the new route could generate additional passengers, by encouraging tourists to visit Archangelsk and anticipates that it could even generate sufficient revenue to fund a new aircraft. Last year, the airline and the regional authorities agreed on a subsidy for providing passengers within the region, in return for a freeze on fares. According to Davydov, however, load factors remain a problem, as few of the region's inhabitants can afford the $100 fare from Archangelsk to Petrozavodsk. The airline employs 545 people and operates three L-410s, ten An-2s, twelve Mi-8s and three Mi-26s.

Article ID: 2585