Sutulov resigns, leaving behind rumours of further departures and the opportunity for Aeroflot to take firmer control of the new terminal development (481 words)

Published: 10/23/2001

According to reports, the General Director of Shermetyevo Airport, Sergey Sutulov, has resigned from his position at the airport on the grounds of ill health, although the resignation still has to be accepted by the airport's board. Whether this is the real reason behind Sutulov's departure is debatable as there has been speculation for some time that relations between the management of Aeroflot and Sutulov are particularly poor. The tension came to a head in July when Aeroflot's General Director, Valery Okulov, threatened that the national flag carrier might consider moving part of its business to Domodedovo Airport, if service at the airport did not improve. The criticism was all the more profound, owing to the fact that Aeroflot - the airport's key user - will occupy the airport's third terminal, which is due to be completed by 2003/2004. The issue of Aeroflot's participation in the terminal building is reported to have been the major focus of contention between the airport and the airline. The airport has downplayed the role of the airline in the project; but Aeroflot has sought close involvement, down to the appointment of the project manager, Bovis International and probably the designer, now confirmed as Aeroports de Paris Engineering. There have also been ongoing disputes concerning the ownership of the new terminal, although sources in the airport say that Okulov has the upper hand in this, with the support of the government ministries involved at the airport, most notably Transportation and State Property, and has gained as a result, the “power” within the joint venture company formed to build the new terminal. The state as the airport's major shareholder must have been dismayed by the loss of major airlines to its emerging competitor in the Moscow market, Domodedovo Airport: the latest, Krasair, transferring its business in early October. While diplomatic about the reasons for the move, given its continuing operations at Sheremetyevo, both the quality of service and the expense of the major airport were cited as being factors. The recent uncertainty generated by the establishment of the state entity for the administration of Moscow airport (GUP) to manage the state's assets at the airport, as with other Moscow airports, has potentially weakened the position of various interest groups, which control aspects of the airport's activities. This suggests that Sutulov's exit, which is generally expected to be followed by a number of the airport management's old guard, may mark a new direction for the airport. The state and Aeroflot will then be faced with the prospect of bringing some discipline to what most perceive to be an unruly state of affairs which undermines the need for a modern and efficient airport.

Article ID: 2850