Further defections for Shermetyevo(352 words)

Published: 7/10/2001

While Aeroflot and Moscow's Sheremetyevo Airport continue to argue over ownership of the new third terminal, the marketing efforts of East Line Group to attract major international carriers to Domodedovo Airport have yielded results. East Line has announced that two carriers will switch from Shermetyevo to Domodedovo and the airport's new international terminal joining recent converts Transaero and Air Malta. The carriers SwissAir and Sabena, have yet to reveal why the transfer has been made, but it is assumed a combination of better terms and the perception of a low level of service at Moscow's major airport have led to the decision. In 2000 Sabena increased its passengers numbers on the Moscow route by 25% to 41,200 flying with a reported load factor of 48.3%. While the loss of the two carriers is undoubtedly a blow for Sheremetyevo, the worry must be that it is not followed by further defections and becomes a flood. East Line has been reported to be in negotiations with Lufthansa since the end of 1999 and the airline's name has remained a constant feature in reports of international airlines contemplating moves. In fact even Aeroflot recently threatened to fly out of the airport during the ill-tempered discussions over the third terminal at Sheremetyevo. The loss of Lufthansa would be a severe blow to Sheremetyevo given that it would give Domodedovo the status that it craves of an airport capable of providing full connections to major international and domestic destinations. For Aeroflot, any potential diversion of traffic from its major hub can only serve to weaken the strategy of regional dominance within an international alliance. The reasons for future moves maybe the fact that even with the completion of the third terminal, non SkyTeam alliance members will probably remain consigned to the aging second terminal. Although it is likely that the terminal will be refurbished the timescale may not be sufficiently speedy for those international carriers competing to attract passengers.

Article ID: 2634