Okulov says it will invest $50m (600 words)

Published: 12/8/2000

600 words On the 6th of December Aeroflot General Director Valery Okulov and the Governor of the Moscow Region Boris Gromov, signed a 3-year agreement covering cooperation in a number of areas. The agreement is the first of its type between the airline and the owner of much of the land that Aeroflot operates on at Shermetyevo Airport. It follows an agreement signed by the airline with the administration of local town Khimki for a 49-year lease on 50 hectares of land for the construction of Sheremetyevo-3, Aeroflot's new 9 million passenger a year terminal. The newly elected Governor expressed his support for the agreement signed by the previous administration, but pressed for the relationship to be developed; particularly favorable investment conditions for Aeroflot to develop infrastructure in Lobnya, Khimki and other towns situated near Sheremetyevo Airport. Aeroflot has reportedly promised to invest $50 million into the infrastructure of the towns, as well as provide passenger and cargo transport for the regional administration on favorable conditions. The new agreement is valid for three years, reflecting the estimated completion date for Sheremetyevo-3 in 2003-2004 at a cost of $200-250 million. Okulov stated that following international benchmarks, one third of the investment in the terminal would be spent in the development of towns around the airport, especially in housing and social infrastructure. Okulov explained that Aeroflot inherited a number of uncompleted buildings in Lobnya and other towns, started for the use of its flight and ground crews. Much of the $50 million will go on completion of these buildings and the improvement of social infrastructure in the towns. Sheremetyevo airport currently provides over 22,000 jobs for the residents of Khimki and Lobnya, but the regional administration wants to increase the numbers employed. Okulov said that construction of Sheremetyevo-3 and overall improvement of airport infrastructure, together with that of nearby towns, is aimed at attracting passengers and cargo flows to the airport. He complained that only 20% of existing cargo terminal capacity in Sheremetyevo is used, believing that with overall improvement of Sheremetievo image might help to increase the figure. We would suggest however, that the problem with cargo lies less in image and more with cost. With Aeroflot in the past even looking at the possibility of a cargo only airport in the Moscow area to escape what is reported to be an expensive and inflexible facility. According to Okulov, current passenger turnover via Sheremetyevo is 11 million a year, but with the infrastructure improvements the figures could rise to 16-18 million by 2005. “My hope is to get back the lost transit passengers who left Moscow for Frankfurt and Helsinki”, he said. A sentiment that is key to the whole concept of the airline's development within the global Sky Team alliance, for which the development of the terminal is seen as an entry requirement.It appears Okulov is however, still keen to make sure that the airport authorities do not sit on their laurels and stressed that the airline saw airport opportunities elsewhere in the Moscow area at Domodedovo and Vnukovo Airports. Gromov as with a number of other regional governors of late used the press conference to confirm the regional administration's intention to establish an air enterprise operating a fleet of approximately 100 aircraft for general duties including agriculture, fire-fighting duties, and cargo transportation. The governor stated that forest fires remain a pressing need and the “virtual demise of agricultural aviation” in the region has brought declining yield for local agricultural enterprises.

Article ID: 2240