A new form, but an old place

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    By the summer season of 2006 a united air company might be established on the basis of the alliance of AiRUnion which will have the same name. Such information was announced at the press-conference in Moscow by Boris Abramovich, general director KrasAir (controlling company of the alliance). AiRUnion unites five carriers: "Krasnoyarskie airways", "Domodedovskie airways", "Samarium", "Omskavia" and "Sibaviatrans". It is expected that this year in total they will carry about 4-4.5 million passengers. The union of all members of the alliance under one brand was planned before the end 2005, yet the conditions were not agreed with state in the expected period, negotiations are still under way. The creation of AiRUnion Air Company will become the remarkable event in the process of consolidation of Russian air market, specialists believe. Eventually there should remain only 5-6 large ‘air carriers’ and 10-20 smaller companies, Alexander Yurchik, head of FAVT believes.
   In general, the representatives of travel business welcome the consolidation of the air market. ‘It will serve good our branch as small companies often do not carry out their obligation’, - says Alexander Nikitenko, director of tourism in ‘Space travel’. The arrival of a new air company can influence regional markets, where position of the alliance is already quite strong, yet one should not expect any revolutionary changes, experts believe. ‘In fact, AiRUnion is already perceived as a united brand, and its formal union will not bring any major redistribution of power. For tourism the main factor for selecting a partner is still the modern air base, rather than the name of the owner. If tomorrow a little-known company will acquire 10 ‘Boeings’, it will immediately receive considerably large amount of orders‘, - explained Alexander Morozov, director of the transport department in ‘PAC Group’ in an interview to BANKO .However, the merging will positively influence the activity of company, for which it will be easier to develop and defend its interests in authority structures.