Don Airlines sees 10 month traffic fall, but is optimistic about Aeroflot linkup

Published: 1/7/2000

The ten-month traffic figures from Don Airlines, in administration since April 1998, with debts of 200m rubles, saw traffic fall by 4.6% to 328,900 passengers, with a dramatic decline in international passengers of 27%, to 55,200 passengers. Michael Kritsky, the former Commercial Director who took over from Pavel Duzhnikov, the former General Director who was subsequently arrested on charges relating financial irregularities, currently manages the airline. It is struggling against competition from Pulkovo, Uzbek Airlines and Ukraine International Airlines on some of their key routes. It is also finding that higher ticket prices, in particular, have impacted its lucrative international business. The future for the airline is perhaps better than could reasonably be expected, due to the potential adoption of Rostov-on-Don as one of Aeroflot"s proposed regional hubs. This has led to speculation by the airline that it would be taken under the flag carrier"s wing. Aeroflot confirms that talks have taken place, but is less forthcoming than Don Airlines ( 49% owned by its employees) which claims that the agreement would see the formation of a new airline, called Donavia. This would link into the Aeroflot network, with Aeroflot supplying aircraft in the new company and Don Airlines adding its 35 aircraft fleet, including 15 Tu-154Bs and 10 Yak-40s, in addition to maintenance and administrative facilities on the ground at Rostov-on-Don. The airline employed 2100 people at the end of 1998. Don Airlines currently operates 45 routes including 28 domestic, 5 CIS (Kazakhstan, Uzbekistan, Azerbaijan, Georgia, Armenia) and 12 international flights (Germany, Bulgaria, Turkey, Czech Republic, Italy, Israel, Spain, UAE, Cyprus). Associated articles: www.concise.org 18th March 1999, 4th June 1999

Article ID: 1292