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Fuel crisis to change russian aviation
08 July 2008
Consolidation and efficiency were in the air at the 6th Annual Russia Airfinance Conference in Moscow. By Janet Du Chenne.
Not many airlines would say that the soaring cost of fuel has done them any favours, except for those in Russia where decision makers are considering major changes to their fleets and operations. Russian airlines want to move away from older, locally manufactured aircraft and fly western-made, more fuel-efficient aircraft. Efficiency was a key feature at the 6th Annual Russia Airfinance Conference in Moscow.
The Russian market has about 20 airlines serving a population of 45 million. The high price of fuel makes some airlines, particularly those that fly Russian aircraft, clear candidates for consolidation. Steve Thompson, editor of Concise Aerospace, reminded delegates that the government influence in the Russian airline industry could make consolidation near impossible.
"The political imperatives override the economic imperatives. The lack of liberalization will not serve the Russian market in the next few years," Thompson told the conference.
Ascend analyst Chris Seymour agreed that fuel...
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