FSVT reports traffic down by 4.5% in the first ten months, but domestic market appears resiliant despite steep fuel rises

Published: 12/14/1999

In line with its full year predictions earlier this month, the FSVT has reported that passenger traffic on Russian airlines fell by 4.5% overall during the first ten months of 1999. Although the decline is primarily attributed by the FSVT to the rise in jet fuel prices and shortage of fuel forcing carriers to cut flights, this year, in contrast to the first ten months of 1998. International routes (-17.6%) however, have suffered more than domestic routes (up 3.6%). Which given that those most affected by the fuel factor were the smaller regional carriers, suggests the decline is primarily attributable to the fact that the airlines fixed domestic ticket prices in rubles, so making domestic travel more attractive whereas, on international routes, prices fixed in dollars has discouraged the tourist and business traffic. The performance of the domestic sector however, does suggest that despite the extremely poor fuel situation that a recovery in volume is occurring and is being held back by the situation rather than being stalled. Over the period, cargo traffic on domestic routes increased by 14% year-on-year, while international cargo fell by 5.9%. Associated article: www.concise.org. 7th December 1999

Article ID: 1221