New Moscow regional air system plan emerges from Avialine

Published: 10/19/1999

Russia's languishing regional air transport market may soon receive a boost from plans to create a new regional transport system, providing air links between Moscow and the regions. A network of helicopters and aircraft, covering an area stretching to 450km around Moscow, will transport both passengers and goods to their destinations from one of 15 mini airports located around the Moscow ring, with the possibility of pontoons on the Moscow River even discussed. The plans are reported to be in the final stages of completion. The project will be run by the state-owned Avialine and joint-stock company, Avialine Centre, which have been set up by the conservative Russian Union of Manufacturers and Entrepreneurs, the Moscow city government and investment company, LanRusinvest. Established in 1998, LanRusinvest has been involved in the funding of the Mi-34 helicopter design and production. It also trades in oil and petroleum products. Its founder, Vladimir Kishenin, is a former KGB employee, where he led a special commission dealing with economic crimes. The Avialine project is its current main focus. According to Arkady Volsky, Head of the Russian Union of Manufacturers and Entrepreneurs, some 21 regional governors have endorsed the project. It is intended that the aircraft will be leased by a state-owned company to five joint stock aviation companies in Russia's central, northwestern and southern regions, the Urals and Siberia and the Far East. The first route, to be launched by the end of 1999, will connect Moscow with cities between the capital and Nizhny Novgorod. According to Vyacheslav Ivanov, head of the Avialine working group, this phase will involve an investment of $4.2m, with revenues expected within five years. The route will operate 20 aircraft. Ivanov claims that the full programme, including 21 regions in central Russia, will require a minimum investment of $87m over five years. He added that Avialine had estimated the annual demand to be at least 300,000 passengers.

Article ID: 982