The influence of the new FSVT has led to powerful players competing to influence senior appointments

Published: 7/28/1999

On July 21st Vladimir Andreyev, Head of Russia's new aviation authority FSVT, held his first press conference. It seems however, according to reports in the Russian media that the path of Mr Andreyev to his new position was by no means a smooth one. The question has been posed by a number of commentators, why this expensive reorganization has been undertaken, which has been reported to have cost the cash strapped government at least $100,000 for new documentation alone. The reason is simple influence! The new structure means new people and a new group of managers making decisions regarding the future of the Russian aviation sector. This meant that the bad boy of the airline sector Boris Berezovsky was actively involved in the process of promoting his candidate for the new General Director job in the form of Anatoly Bondarev and apparently had a Presidential decree announcing an appointment prepared with Bondarev's name on it. For those who want to seriously influence the aviation business, FSVT represents a rich prize. The organization not only regulates the activities of the Russian operators, but it also grants licenses for flights and establish quotas on servicing the air routes. The FSVT also has serious leverage on the pricing policy of the operators, airports, and air refueling complexes. It is also in a position to influence the policy of the Central Agency of Air Traffic (TsAVS) and the Transport Clearing Chamber, where billions of rubles of the revenues of all of the operators are consolidated. So battle for control or influence of the FSVT is not without its compensations. The attractiveness of the prize has also brought competition from within government according to some employees of the FSVT. On May 20, Interfax suggested the possibility of the creation of a Ministry of Aviation. The Ministry might take from FSVT the functions of FSVT and the control over the state and experimental aviation. Additionally the new ministry would coordinate the Military aircraft involved in the civilian economy. Sources within government suggested that the First Prime Minister Nikolay Aksenenko was interested in the creation of such a ministry and that the Interstate Aviation Committee headed by Tatyana Anodina had ambitions to lead such a body. In part it was the internal and external competition that brought about the new body led by Colonel General Vladimir Andreyev, formerly the Commander-in-Chief of the Air Defense Air Force, who is considered as a neutral and therefore appeases the various camps. The scrabble for other senior posts within the agency however, remains and already Berezovsky has his man Bondarev in place as First Deputy Director of the FSVT. Even more gratifying for Berezovsky the new position allows Bondarev to become a member of the Board of state representatives in Aeroflot, an organization that he has been unceremoniously pushed out of over the last few months.

Article ID: 713