Wednesday, August 24, 2011

Small airlines to be squeezed out of Russian skies -Sergei Ivanov, Russian Deputy. No way to avoid crashes -Oleg Panteleyev,Russia's Aviaport analyst.

Russian deputy premier Sergei Ivanov wants to see small airlines grounded, and has ordered aviation watchdog Rosaviatsiya to restrict regular flights for companies with small fleets.

Experts say this would be unprecedented in world aviation practices, and will not make any economic sense.

New rules for regular flights

The new rules coming into force on Jan. 2012 will affect 57 per cent of Russia’s 139 officially registered airlines, said head of Rostransnadzor Alexander Kasyanov.

Starting next year airlines will need more than 10 aircraft to earn the right to fly scheduled routes, and in 2013 the bar will be raised to 20.

Ivanov hopes that this force smaller companies into niche markets and improve safety in the commercial sector.

“It is impossible to stand-by and watch planes of these so-called airlines crash,” Ivanov said.

He argues that the new rules will not kill off small companies, but warns that they will have to demonstrate that they can provide appropriate passenger security.

Small companies squeezed out

Figures show that about 90 per cent of the Russian market is already controlled by the top 15 companies, according to Rosaviatsiya.

The other 124 companies registered in Russia, share between 10 and 20 per cent of the market, depending on statistical data used. And the authorities believe that safety records on these flights leave a lot to be desired.

Rosaviation is sure that the top 15 companies have aircraft that follow all the criteria.

Aeroflot and Transaero could also gain an advantage in taking the best international routes. Russian transport ministry supported the recent suggestion of Aeroflot boss Vitaly Savelyev, that only companies that “have modern aircraft locally produced” can be granted licenses for international transportations.

Illogical move

Experts do not support the new initiative, saying it will not affect air safety in any way.

“It is very difficult to find a logical explanation for this decision,” editor in chief of Aviatransportnoe Obozrenie Alexey Sinitskiy told Moskovskie Novosti.

He is sure that the first result of the new rules will be a decreased investment attractiveness of airlines.

“It will be simply impossible to create a new company. The size of the necessary investments will be prohibitive, both for Russian and foreign investors,” the expert said.

No way to avoid crashes

The head of Aviaport agency’s analytical service Oleg Panteleyev is also not impressed.

“The companies that will be affected by these unprecedented restrictions are shocked. And the new measures will not help avoid plane crashes. Not one country in the world evaluates the airline’s safety judging by the size or age of its fleet. The only things that matter are how exactly it follows the set procedures on keeping the fleet operational.”

However, “the airlines understand that in Russian conditions, if the authorities decided on the forceful division of the market, it is impossible to resist it, but they still hope that common sense prevails.”

Poor safety record

In the last year the number of plane crashed doubled in Russia, while the number of victims quadrupled, said Ivanov.

In 2011 so far there were 26 incidents with planes, 13 crashes, and 81 people died.

He noted that all the crashes happened with old planes, belonging to companies with less than ten similar planes.

Ivanov also said that fines for operating without a license should increase tenfold, and should be up to 500,000 rubles ($17,000) for companies.

The fines would be the main stimulus to ensure passenger safety, he said.

Source:   http://themoscownews.com

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