Volume down by 33% in 2000 (960 words)

Published: 2/26/2001

The action taken against East Line by the FSB (Federal Security Service) in September 2000, caused a drop of 33% in the airline's cargo figures, compared with 1999- missing its 75,000 tonnes target and carrying only 40,000 tonnes, according to General Director Amirani Kurtanidze adding that the investigations have yet to uncover evidence of any wrongdoing. The airline is however, still subject to strict customs checks, which in one case has resulted in a clearance taking one month to be approved for a flight from China. Kurtanidze said that many flights to China had been cancelled because the airline could not make money in the prevailing circumstances. Estimated losses, as a result of the FSB action, would be around $10 million. Despite these problems, East Line remains Russia's no.2 cargo carrier, after Aeroflot, the largest dedicated carrier - responsible for 20% of all Russian cargo traffic by air in 2000, with its commercial load factor rising by 6.6%, up to 81% (some 20% higher than the industry average). The cargo market to China during the year was seriously hit by competition, as carriers offered carriage at rates considered to be unprofitable by East Line. Elsewhere 21 charter cargo airlines were operating on East Line and Aeroflot routes, causing unhealthy competition over rates. Two detachments of the Russian Air Force air lifter force were also permitted to officially undertake commercial activities two years ago. Kurtanidze considers this to be a form of treason, in that military aircraft is being used for commercial purposes at vastly subsidized rates (paid for by taxpayers' money for national defence), with which the airlines cannot hope to compete. East Line will continue development of its cargo conveyance services in 2001 on the routes linking Europe (Finland and Luxemburg in particular) with Asia (Korea and Northern China in particular). Inbound flights carry communications equipment while outbound transport textile products, thus providing a good load each way. In 2000, the airline made over 30 flights carrying humanitarian cargoes to Sierra Leone, Indonesia, Yugoslavia, Australia and North Korea .In February 2001, East Line Airlines provided an Il-76 flight for transporting humanitarian cargo from Denmark to India. More passengers Passenger traffic for the airline trebled last year, with 140,107 passengers carried (48,162 in 1999) over 376.1 million PKM. The airline's seat loading factor rose from 54% to 72%. Three new scheduled services were started, from Moscow Domodedovo airport to Germany and charter flights to Austria and Croatia. Kurtanidze unsurprisingly attributed the improvement, in part, to the new terminal at Domodedovo - owned by East Line Airlines parent, the East Line Group. Hopefully this will see 250,000-300,000 passengers during 2001, through scheduled passenger flights to five destinations in Europe, 2 in Kazakhstan and one in Kirgizstan and a plan to open regular Il-86 services to UAE (Dubai). Waiting for Il-76TF Noise requirements being implemented in Europe in 2002 are spurring the carrier to consider the replacement of the Il-76TDs with the Il-76TF, the latter meeting the current and forthcoming ICAO, JAA and FAA requirements. Two such aircraft have been ordered from TAPO, through a financial lease from UzbAviaLeasing (an Uzbek state company). The first aircraft is due for delivery by the end of the year, once the remaining 30% of its avionics and its PS-90A engines have been fitted. The second may follow in spring 2002. When the aircraft are in operation, the airline will field-test them extensively before making further commitments for additional aircraft. At half the price of a western equivalent, plus an extra 15 tonnes cargo capacity and a fuel consumption of 2.5 tonnes less per hour than its predecessor (the Il-76TD) it seems a good proposition. While accepting that there may be problems with the PS-90s operated by Aeroflot, Kurtanidze said that Domodedovo Airlines, operating three Il-96-300s, continues to be “very happy” with the aircraft's performance and engine reliability. In 2002, East Line is going to use the An-74 freighter, for Western European destinations, as the aircraft meets new ICAO noise requirements. Kurtanidze believes that there will be certain cargo airports in Europe accepting non-Stage III aircraft in 2002 and beyond, making it possible for Il-76TDs to continue flying. Yak-42 East Line has no problem with its Yak-42s meeting new requirements in Western Europe. It was a good move to accept the Yak-42 as its primary passenger airplane for scheduled passenger service to Western Europe. A Yak-42 is four times cheaper to buy than a 737 (and readily available on the second-hand market). Upgrading the Yak's austere interior to Boeing standards requires between $100,000 and $200 000. East Line has already equipped a sufficient number of its cargo and passenger planes for flights to India and Europe, where the requirement to have a mid-air collision-avoidance system has already been implemented. As for the Tu-154M, Tupolev says that to meet ICAO Stage III requirements it will require hush-kits to comply with the incoming regulations (in practice the D-30KU-154 engines, especially the first series, are often noisier than the certified specimen). There is the risk that these hush-kits may be banned by EU authorities that refuse to acknowledge FAA certification for similar hush-kits on older US types. The Russian authorities must persuade the Europeans to accept hush-kits for the Tu-154, or the most popular Russian passenger aircraft will have problems flying to Europe. The airline was established as a member of East Line group five years ago, starting with a handful of Il-76TD freighters. Its fleet has grown to 42 aircraft, including 18 Il-76TD four-engine freighters. Other types in service are the An-12 and An-74 freighters, Il-86, Il-62M, Tu-154, Yak-42 and Yak-40 passenger aircraft and Mi-8 helicopters).

Article ID: 2379