Genav programme Avialine gets under way but some express doubts

Published: 2/16/2000

On 8th February, the agreements were signed for the formation of the private company, OAO Avialine Centre, to provide general aviation services to business and government in Russia. The entity already has a small fleet of Mi-3s and Il-103s and will link into the overall government-owned GUP Avialine transport system concept of providing Russian aircraft through leasing for general aviation uses. The Centre is supported by a number of investors, the largest of which is AO Lasrusinvest: a rather shadowy holding company that has made much of its capital trading oil and petroleum products and a large number of Russia"s regions. It will operate aircraft leased from GUP Avialine, alongside four other private regional Avialine Centres based across Russia. Despite the intention of utilising Russian types, it remains unclear whether the Centre will be able use the recent Russian genav aircraft such as the Gzhel, given continuing financing problems for the aircraft and the fact that some of the major programmes are still awaiting certification. According to reports, the Avialine Centre is now undertaking a two-month review of the situation and, during this period, investment will be sought. It appears, however, that the initial projections of 150 aircraft purchases within 18 months were premature. It is easy to be dismissive of the many and varied plans within Russia"s aerospace sector. This makes even less sense than most. From the details of the plan, it appears to be a state funded air taxi service with an unusual fleet of true genav aircraft like the Gzhel and Avia Accord-201 mixed in with aircraft like the Il-103, which do not easily fit into the idea of an air taxi or many other genav applications. To be charitable, the producers need the work, so if it creates demand, then it deserves to succeed, but using limited state resources in this manner seems misplaced. For those within the producers the view appears to be that the idea is more reminiscent of the Soviet era. It is likely that yet again money will be wasted, but it is a customer, and if the money is available, then it will happily sell the aircraft. There are however, severe doubts about individuals, such as Arkady Volsky of Avialine, having any grasp of commercial realities. The concept of the government devoting time and money to an area low on the aerospace priority list, through a quasi private/state solution, suggests the focus that seemed to be emerging still remains elusive.

Article ID: 1428