Jetrader - July/August 2012 - 17

bilateral agreements and most of them strictly regulate the number of carriers that can operate in the market. Most of the permissions to ﬂy from Moscow to foreign countries were inherited by modern Aeroﬂot from the Soviet Aeroﬂot, while others need to compete for residuary destinations or to work for the charter market, which is increasing due to the growing number of tourists. But the airlines are getting new opportunities as Russia is revising bilateral agreements with other countries. Since the beginning of 2012, Russia agreed with Italy and France to amend the agreements with each of the countries. The main change on Italian destinations will be two additional designated carriers (one from Russia, one from Italy) on Moscow-Rome and Moscow-Milan routes. Now the non-stop ﬂights between these destinations are operated by Alitalia and Aeroﬂot. As they are the members of one alliance—SkyTeam—the experts accused them of monopoly on the routes. Also two more designated carriers will start to work on Moscow-Paris route that was agreed with France. The ﬂights to Paris are even in higher demand than ﬂights to Italian cities and until now there were only two carriers—Aeroﬂot and Air France (again SkyTeam partners). The monopolies on some routes keep the ticket prices quite high, so some CIS carriers are able to offer the traveler cheaper transfer ﬂights via their base airports and also get the passengers from the Russian regions, but they have to compete with other network Management Engineering Tooling carriers. Ukraine and Kazakhstan have the biggest aviation markets in the CIS (the territories of the countries are allowed to develop not only international but also domestic routes). In both countries, there are only a few main players in the market. In Ukraine, these are Ukraine International Airlines and Aerosvit, which makes up Ukranian aviation group together with 01/05/12 Donbassaero and Dniproavia. In Kazakhstan, the main role in the581469_AvioTech_Incorporated.indd 1 aviation market belongs to Air Astana. In both countries, the carriers are renewing their ﬂeets: Aerosvit received its ﬁrst Boeing 737-800 at the end of March 2012 and ordered 11 aircraft of that type. During 2011 the carrier`s ﬂeet grew half as much again. Now the airline operates 26 aircraft including eight Boeing 767s and 18 Boeing 737s. Also Aerosvit uses A320s family and Embraer 145 and Embraer 195, which belong to its partner’s ﬂeet. Air Astana announced the decision to phase out its Fokker 50 ﬂeet, the ﬁrst out of six aircraft was retired in April 2012, and to replace them with Embraer E-Jets. Also the carrier placed an order for four Boeing 767-300ERs and three 787-8s. The cost of the deal is estimated at $1.3 billion at list prices. It is the largest order in PERFORMANCE YOU CAN COUNT ON Kazakhstan’s civil aviation history.

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Looking Ahead
The carriers from both of the republics are launching new routes to the Russian regions, trying to attract more clients to direct and transfer ﬂights. The relations with CIS republics are also regulated by bilateral agreements with Russia so they need to negotiate about the new routes. The airline market in the neighboring republics is growing the same or even more than in Russia. The Ukranian market growth last year exceeded 20 percent, and experts say this will continue in the near future. The forecast for Russia is also positive, but the rate will be lower. According to the State Research and Development Institute for Civil Aeronautics, the average growth in 2012-2030 will be around 6.7 percent to 8.2 percent.
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Jetrader - July/August 2012

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