Sergey Sutolov, General Director of Sheremetyevo International Airport optimistic about the airport's future

Published: 8/23/1999

At a recent press briefing, Sergey Sutolov, General Director of Sheremetyevo International Airport, claimed that Sheremetyevo is currently handling 65% of passengers passing through Russian airports for international flights and is the largest airport in the CIS. According to airport estimates, it will serve 11m passengers in 2000. Its own analysis of the market for foreign passengers, not unsurprisingly, found that the airport is good shape and will not lose its position to other airports in Moscow. Given the heavy investment announced recently for Domodedovo Airport, led by the cargo/passenger carrier, Easy Line Group, this seems somewhat optimistic in a market where capacity remains under-utilised, owing to poor economic conditions. Sutulov told journalists that Sheremetyevo increased its passenger volume by 3%, to 5.4 m passengers in the first half of 1999, compared to the first half of 1998. Airport forecasts estimate that passenger volume will be 11-12 m a year over the next 3 years and will reach 30m passengers by 2015. According to Sutulov, the airport currently serves 33% of all Russian international passengers and 40% of all international cargo traffic. At present, the airport has no debts and, on revenues in 1998 of 1.5 billion rubles ($150 m), returned a net profit, under Russian Accounting Standards, of 137 m rubles($ 14 m). The airport's Terminal 1, according to management, is currently capable of handling 800 passengers an hour on international routes, and 600 passengers on domestic routes. Terminal 2, built in 1980 to coincide with the opening of the Olympic Games in Moscow, is capable of handling a further 2100 passengers an hour. This is regarded as being inadequate for future growth and the management have embarked on a programme of improvements to increase capacity and the commercialisation of the airport. This phase of the improvements is being undertaken with the Khimki region of Moscow Oblast, and the regions close to the airport, Solnechnogorsk, Lobnya, Dolgoprudny regions, as well as the city of Moscow. All these authorities are seeking to cooperate on infrastructure development. The final programme for the airport's development is not yet in place, but plans include exhibition space, retail outlets, hotel complexes, and improved transportation. For Terminal 1, two additional units are planned, with a further two units to be added at a later date. The current terminal will then be reconstructed, together with the air traffic control building and other works. Terminal Two will also be rebuilt, to improve both the volume and the quality of its passenger handling service. The airport also intends to dramatically improve the transit times between the two terminals, which currently can take up to 2 hours. The modernisation programme will be phased in 3 stages and completed by 2015. Suitable land for the expansion has been identified and discussions are underway for its purchase. Negotiations with interested parties for additional funding are also taking place, but Sutolov claimed that terms offered by foreign companies were currently “unfavourable”. He would not comment directly on the control and management of the new facilities, except to caution that: “Those who plan this organisation must be very careful not to make serious mistakes”. He added that many important issues must be analysed, such as the type of ownership, detailed tasks, passenger and cargo traffic, number of air routes. Media rumours suggest that a new management organisation will be appointed. Sutolov would also not disclose any details of financing. Currently the airport serves 154 airlines, including 65 regular carriers and 89 charter carriers. Major clients comprise Aeroflot, Transaero, Delta, British Airways, Lufthansa, Air France, SAS and JAL. On domestic routes, the airport serves Pulkovo Aviation Enterprise, Arkhangelsk Airlines, Samara Airlines, Murmansk Aviation Enterprise, Syktyvkar Aviation Enterprise and Baikal. The state owns a 100% stake in Sheremetyevo Airport and received dividends for 1997 and 1998. .

Article ID: 770