The recent development of the new Crosspolar routes have brought into public focus the issue of flight safety and the reliability of the Russian Air Traffic Control (ATC) that will handle flights in the airspace over Siberia and over large portions of the Arctic Ocean.
In contrast to the ATC systems in the West, where the increasing number of ATC delays, limited sector capacity and growing air traffic tended to be the main challenges for aviation decision makers over the last decade. The Russian ATC has an entirely different set of problems. The primary problems being the declining volumes of domestic air traffic and unpaid over flight fees by Russian and some foreign carriers; with both having the effect of impeding the recovery of the systems operating costs and the financing of the ATC modernization program in the early 90s.
After break-up of the Soviet Union, most of Area Control Centers and ATC services of certain airports merged into separate legal entities, known as regional Air Traffic Control & Airspace Use enterprises. ATC services at other airports remained under control of individual airlines and airport operators, often providing what little income the operators were generating particularly in remoter areas such as Siberia.
To create a more unified approach to the ATC system and overcome the problems the lack of a single authority was posing. In late 1996 the Russian Government established the State ATM Corporation, with the remit to establish control over 34 regional ATC enterprises and provide central funding for their activities and modernization programs. Restructuring the 34 ATC enterprises into 26 subsidiary companies reporting to the State ATM Corporation after a period of transition.
The reality however, has been somewhat different, due to the poorly organized restructuring process and strong resistance of certain local authorities, who were unwilling to transfer ATC equipment and give up control over ATC services at regional airports. This has left the consolidation of the ATC services well behind schedule. Particularly due to the role of the military in running the system in partnership with the civil authorities, has presented problems given that the civil authorities have direct control over only 20% of airspace.
At present, only 17 enterprises have completed necessary steps to join the State ATM Corporation. With substantial difficulties being reported with ATC services at airports in Southern Russia such as Sochi, Krasnodar and Minvody, the Moscow region (Vnukovo and Sheremetyevo), St. Petersburg and certain airports of Siberia. All these shortcomings were criticized in the recent report issued by the Russian Audit Chamber, the State Duma's financial watchdog.
Funded by air navigation charges, the Russian ATC system charges domestic users significantly less than foreign airlines. In addition, there are certain categories of users who are partially or completely exempt from over flight charges, such as the military, despite the fact that the military is often involved in commercial activities. Consequently, the backbone of the system relies on financing through hard-currency revenues from foreign airlines. The growth of foreign traffic and revenues is, however, has been disrupted by political restrictions over access to Russia and royalties imposed by Aeroflot on foreign airlines for use of air traffic rights over Russia.
In the early 90s, during the transition from budgetary financing to the ICAO ATC billing & charging system, the Russian ATC system simply did not have access to funds for modernization. Using most of its hard-currency earnings on air traffic controllers' wages. As a result, ATC equipment was not properly maintained and upgraded to ensure appropriate levels of air safety. The situation started to improve in the late-90s, when the newly formed Federal Aviation Authority (FSVT) reviewed the federal modernization plans and started accumulating necessary resources to revamp the system. With an emphasis on procurement of equipment and services from domestic manufacturers, resulting in a fall of foreign equipment's share of procurement from 80% of contracts being made with foreign companies to the situation currently where 84 % of all modernization contracts are awarded to domestic manufacturers such as Lianozovo Electro-Mechanic Plant, Vladimir Radio Plant, Plant # 408, Chelyabinsk Radio Plant. The remaining 16 % of contracts cover work on the outstanding foreign contracts.
In addition to upgrade and replacement of existing ATC facilities, Russia has also focused on installation of new equipment, including CNS/ATM applications for new air routes in the Russian Far East and the Polar region. The two largest international projects are considered to modernize infrastructure in the Russian Far East and Polar region. The Russian Far East modernization project, estimated to be worth $130m, has been in development for several years and currently nears its long-awaited implementation, which should be awarded through international tender. Financing the programme however, remains a problem. Talks with the EBRD on the provision of a sovereign guaranteed loan $45m were put on hold due to Russia's refusal to proceed negotiating on the issue of Aeroflot's route royalty payments. Subsequent discussions with Japan suggested that Sumitomo, is willing to provide a commercial loan for Russian Far East modernization.
It appears however, given the importance of the upgrade, that financing will be resolved and will bring significant benefits to both Russia and airline operators flying from North America to Japan and Southeast Asia. The other significant development for the ATC is the modernization of equipment in the polar areas to support the newly opened Cross-polar routes. The project's feasibility was proved in a joint Russo-Canadian study and will require considerably lower investment of $ 26m. In exchange, according to FSVT, Russia will generate approximately $ 40 m a year from over flight fees after 2002.
In spite of the technology issues in Russian ATC development, the lack of centralized authority and the imposition of well-defined written procedures establishing specific functions and responsibilities of agencies involved in regulation of ATC system remains a problem. This has resulted in the State ATM Corporation assuming control of all financial and technical matters, while the new Civil Aviation Service ATM department within the Ministry of Transport was supposed to handle only regulatory issues. In reality, the ATM department, which itself has undergone enormous uncertainty with the restructuring of the FSVT has de facto has retained control over revenue in the ATC system and decision-making on investment projects and modernization projects. The military has also retained a close involvement in decision-making and has been reported to be envious of the flow of funds coming to the civilian agency.
It seems therefore that despite the plans of the government to enforce some level of regimentation on the system, the high level of independence of those involved either from the military, government departments or regional government will impede the development of a truly unified system unless the government seeks to force through the implementation of centralized ATC for Russia.