Transaero's ten month figures don't support company's bullish outlook as it is suspended from industry association for non payment of fees

Published: 12/14/1999

The Association of Air Transport Operators has reported Transaero"s operating results for the first ten months of 1999, showing a sharp decline, compared to the corresponding period in 1998. Both the company and its General Director, Alexander Pleshakov, have had their membership of the association suspended, for failing to pay its Rb 60,000 annual membership fee. Over the period, Transaero"s passenger traffic fell by 58.0%, with the greater decrease recorded on domestic routes (-74.4%). Cargo traffic also declined by 66.7% overall, again with domestic routes showing the more substantial losses (-81.8%). This is attributed to the cancellation of many domestic routes and the impact on Transaero of the freezing in rubles of ticket prices. Most of its fleet are leased aircraft, requiring dollar-denominated leasing payments. Transaero has had to shed much of its fleet as a result and now operates one Il-86, five Boeing 737-200s and two Boeing 737-700s. These are tough times for Transaero. Despite its history of bullish declarations – it has claimed, for example, that it would have 40 Boeings by 2000 and be a major customer for the Il-96M – these latest results, together with the nine month figures reported in November, suggest a radically different picture. Associated article: www.concise.org. 29th November 1999

Article ID: 1219