Substantial plans for the future (520 words)

Published: 12/15/2000

522 The East Line Group has completed its major reconstruction of Domodedovo International Airport. Having made this statement, Dmitry Kamenshchik, the East Line Group chairman, went on to say, that the modernisation cost more than $300m, including $ 90 m on the reconstruction of the terminal, which was funded without state assistance. East Line sees this particular financial inject as part of its ongoing investment strategy at Domodedovo. Further to that end, it has earmarked another $50 m for several other projects. The new passenger terminal is capable of handling 2100 domestic passengers an hour and 1100 passengers on international routes. It is capable of increasing this capacity by 30%, which is equivalent to 6m passengers a year, without impacting the terminal's ability to handle traffic. Historically, Domodedovo has handled 7m passengers a year, though the service levels offered previously would have been significantly below anything the newly upgraded airport now offers. If traffic projections increase above the 6m mark, East Line says that it has plans for a second terminal, capable of handling 2500-3100 passengers an hour. The timetable for the construction of the next terminal remains uncertain. It is largely dependent upon the ability of the airport to attract business from other airports in Moscow and Russia. Their initial efforts have been rewarded with good results. The recent decision of the Krasair-led airline alliance (including Domodedovo Airlines), to use the airport as their Moscow hub, can only strengthen its position in the bid to attract additional carriers; especially international airlines. The task of attracting new passengers will not be easy. The GSGA estimates that Russian airlines will carry substantially fewer passengers in 2000 compared with 1999. It predicts traffic on domestic routes falling to 13 m passengers in 2000 from 14.3 m in 1999. Attracting new customers, such as the new airline alliance, must become an essential part of the airport's marketing strategy. East Line believes that foreign airline unhappiness, with both capacity and service at Shermetyevo, could bring in carriers such as Lufthansa and Swissair. Valery Okulov, the General Director of Aeroflot, has not been slow to remind Shermetyevo that he does has a choice of airports in Moscow when negotiating terms for the new Aeroflot terminal at the airport. During 2001 East Line plans to spend $3-5 m, in conjunction with the Ministry of Railways, in order to upgrade the airport's railway facilities. This would include a renovation of the airport's train station and the provision of more comfortable rolling stock between the Paveletsky Railway Station and the airport. The work is scheduled to begin in Spring 2001 and is due to be finished during 2002. In addition, East Line also plans to give passengers the option of checking in their luggage on Paveletsky Railway Station. For Kamenshchik, Domodedovo Airport has the best development potential out of all of Moscow's airports. Although his anticipation, of having enough space to build terminals capable of handling 75 m passengers a year, seems a bit fanciful, it is clear that Shermetyevo will have an aggressive competitor. The already struggling Vnukovo is not going to find it any easier

Article ID: 2249