Free Sky. Part Two - Contra

Free Sky. Part Two - Contra

16.02.2006, 18:15
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Free Sky. Part Two - Contra
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   At the meeting such companies as KrasAir, Pulkovo, Orenburg Airlines, Kuban Airlines, Dalavia, and Ural Airlines – that protect their territories from the invasion of competitors – opposed pro free sky position. They presented the following arguments: regional routes available for all airline companies will lead to dumping prices, airlines with old aircraft fleet not being able to compete with powerful ‘newcomers’ will go bankrupt and as a result thousands of people will lose their jobs. As a consequence, 5-7 strongest market players will realize only profitable flights from Moscow to big cities in Russia, while unprofitable interregional routes will be closed. Moreover, FAAT hold the same opinion. In particular Vladimir Romenskyi, the Head of Production Activity Management, admitted the imperfectness of the existing practice of inner flights licensing, simultaneously pointing out that the free sky scheme can not be adopted at the moment as it may lead to air industry crisis. According to Romenskyi, state regulations are necessary in this sphere but the permission criterion must be worked out.
   Apropos, Moscow air market is open for everybody and Moscow airline companies are not protected from external competitors.
   This issue will be discussed in detail in our magazine Hot Line. Tourism.

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