TAT continues to consider western aircraft alternatives, as it awaits Russian equivalents (426 words)

Published: 2/6/2001

TyumenAviaTrans (TAT) is reported to be considering the use of a western regional turboprop aircraft on short- and medium- routes in Siberia, according to Andrei Martirosov (Tyumenaviatrans's General Director). He particularly mentioned the Dash-8 and ATR as being contenders, following the announcement that the carrier was considering operating western turboprops in December last year. Martirosov says the airline is looking at the western aircraft along with the An-140. Preliminary evaluation of the Dash-8 suggests that profitability would be difficult to achieve without substantial local government subsidy. “There are many small cities and towns in our region much dependant on air transport, so the local authorities might choose to grant subsidies for keeping the air traffic between those”, Martirosov said - mentioning the cities of Surgut, Salekhard and Khanty-Mansiysk as potential contributors. Funding from the oil companies may also provide the new aircraft (TAT's primary customers). The carrier is reviewing a number of options, including buying new or used aircraft, operational leasing from western operators or financial leases. TAT has distinguished itself from other Russian operators in the past, by its willingness to openly consider the use of western aircraft - as demonstrated by its involvement in the failed leasing scheme in the late 90s, led by Russian Aviation Consortium, to acquire western regional aircraft for a number of Russian carriers. Recently Martirosov, as head of Russia's largest civilian helicopter operators, has also been scathing about the quality and viability of Russian helicopter programmes under development. He has said that the airline will consider foreign “light” helicopters. As a potential lessee, TAT has made a Lazarus-like financial recovery by Russian standards, driven primarily by the rising oil price's impact on Tyumen and the upswing in UN business. There is therefore relatively little risk for any potential financial counter-party. The major problem may actually be in the political environment. The current customs tariffs, on the importation of foreign aircraft, seem unlikely to be relaxed for an additional carrier, particularly when this market segment is seen by the Russian authorities as having uniquely Russian challenges and especially when they believe that the industry has a product that can compete. It seems likely therefore that the authorities would take a dim view of one of the country's major airlines buying the aircraft. There could be a case for short-term leases, prior to the introduction of Russian types - an argument put forward by Aeroflot during the last twelve months, awaiting the availability of the Tu-334.

Article ID: 2342