Krasnoyarsk Airlines continue to grow and double routes serviced in 1999

Published: 9/27/1999

In a report from Prime TASS, Krasnoyarsk Airlines (KrasAir) has reported some of its 8 months operating results. The company reported that load factors had increased by 9% compared to the same period in 1998, with passenger volume up by 22% to 538,280 passengers. This makes Kras Air the fourth largest passenger carrier in Russia and sustains a trend set at the six-month stage where passengers and load factors were up by 10% (www.concise.org 13th August 1999). The marked increase in passengers is partly attributed to the increase in the number of routes serviced by the Siberian airline, which increased from 21 in 1998 to 41 in 1999, but the company ascribes the increase of load factors to better route and fleet management. Cargo traffic also saw a substantial recovery, with volume up by 29% to 12,780 tonnes. Despite fuel costs rising by 42% over the last two months, the airline reported that it had not increased ticket prices significantly during the period. There is no mention of the impact that this large cost increase has had on the airline's margins, but it seems likely to be significant. In the longer term, the splitting of the airline business from the airport business within Krasnoyarsk Airlines, recently proposed by the Governor of Krasnoyarsk, Alexander Lebed (www.concise.org 23rd September 1999). May have an interesting impact on the airline's cost profile, as airport charges in Russia can be as much as 40 % of total costs, one wonders whether this will reduce or increase them as a proportion of Kras Air's costs.

Article ID: 905