Monthly Archives: February 2014

UTair Airlines, Russia, to launch Kazan – Baku new international flight

The UTair Airlines OJSC, Russia,
announces on introducing a new international flight, Kazan,RussiaBaku, Azerbaijan.

The flights to Bakufrom the capital of Tatarstan will be initiated since March 6, 2014, and will be
operated once a week, on Thursdays. The aircraft departs from Kazanat 13:30 and from Baku– at 08:30 (local time for each airport). The time in flight is three hours.

The flights will be operated on the Boeing 737-500 aircraft in economy
and business classes.

The one way lower rate is EUR 129. This is an economy class fare without
agency fees. The number of seats is limited .The Airline reserves the right to
cancel or change airfares without a notice at any time.

The UTair Airlines is among the three leaders of the Russian air
transportation market. In 2013, the Air Company’s aircraft transported
9,625,295 passengers, whereas the UTair aircraft group carried 10,413,803
passengers. The UTair air fleet includes over 150 aircraft. The Airline flies to
110 destinations. The Vnukovo International Airport,Moscow, is a main
hub of the Air Company, from where one operates over 100 flights daily.

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East Air Airlines – a resident of Russia flies to Tajikistan due to air ticket sales cashier’s fault

A curious incident occurred today on the last day of winter on board the
aircraft belonged to  East Air Airlines, Tajikistan. Yevgeny
Samoshkin, a 19-year-old citizen of the Russian
, flew from Moscow,Russia, to Kurgan-Tuibe,Tajikistan, instead of Kurgan, Russia,
the Air Company’s Press Service reported.

“There’s probably a cashier, I consulted her to buy an air ticket
to fly to Kurgan, she got it wrong”, a 2nd year student of the Faculty of
Philology, Journalist Department, Northeastern Federal University in Yakutskm
Russia, says, who was flying to Kurgan for the participation in the international
scientific conference, “Universal and Specific Items in Languages
​​and Literature”.

The future journalist could not get to the conference because he arrived
in sunny Tajikistan from Moscow. “I was shocked
when I was asked to fill in a migration card at the airport”, Eugeniy shares
his impressions. “I could not understand why I am asked to fill in a migration
card in the territory of my own country. Next, I could not understand why all
the announcements do not sound in Russian. I walked out of the airport and the
taxi drivers started offering me a ride to unfamiliar cities. In the end, I contacted
the information desk, where I was told that I was in Tajikistan”.

Currently, representatives of the East Air Airlines and the airport in
Kurgan-Tuibe conduct some excursions for Eugeniy Samoshkin in the city. Tonight,
Eugeniy will fly from Kurgan-Tube back to Moscow,
from where he will fly then to his native city of Yakutsk. “I has already been too late to get
to the conference. I am glad that they will publish my article anyway, that is,
in absentia, I still participated in the conference”, Mr. Samoshkin concluded.

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Rescuers from Atyrau Region, Kazakhstan, receive Mi-26 helicopter

A Mi-26 helicopter belonged to the Kazakh Ministry on Emergencies
arrived in Atyrau Region, Kazakhstan, the Ministry’s Press Service

“This powerful aircraft has been known since the Afghan war, and it has
no any analogues in the world, as it is capable to carry a KAMAZ trailer truck.
I say this so that people would be able to imagine what is the carrying/lifting
capacity of this helicopter. Its main aim and objective is to operatively move
forces and means in case of emergencies and/or disasters”, said Gyumar
Duysembaev, First Deputy of the Atyrau Region’s Governor.

The Ministry’s Press Service also noted, “with the purchase of Mi-26,
the rescuers have an opportunity now to more operatively response to

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Airbus expresses its interest in aviation market of Tajikistan

Airbus, one of the largest aircraft manufacturers in the world, has
expressed its interest in the aviation market of Tajikistan, the Tajik Ministry of
Foreign Affairs reported to CA-News on Friday.

The prospects of cooperation were discussed at the meeting by Homidzhon
Nazarov, Ambassador of Tajikistan in France, and Joel Boff, Vice President for International
Operation Relations and Public Relations, Airbus, and Stephen Conkoly, Regional
Director on Sales for Europe and Central Asia,

“During the meeting, the sides discussed the issues of cooperation
between Tajikistan and Airbus. Representatives of this company expressed their interest in the
aviation market of Tajikistan”,
the Foreign Ministry added.

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Georgian airlines against domination of foreign companies

Georgian airlines require a revision of the legal framework,
regulations, and standard acts.

Iase Zautashvili, CEO,  Airzena-Georgian
Airways, told Kommersant the norms of regulations approved many years ago were
absolutely reckless and ultimately harmed Georgian airlines.

 “You can pursue an “open skies”
policy but it has its own rules, particularly when contracts are signed, as
regards the flights operated by foreign airlines, one should observe a parity.
To date,  this principle is violated in Georgia”, he

According to him, the Georgian airlines do not enjoy any privileges, and
against this background, Airzena pays by 15-20 more taxes than all foreign
airlines operating in Georgiaall together.

“In fact, foreign companies do not pay any taxes in Georgia”, the Director General

31 airlines are operated in Georgiaand there are only two ones from Georgia, namely, Airzena and  Air Caucasus. As of 2013, their market share
is 11% and 0,10%. Until recently, 5% of the market was taken by the Fly Georgia
Air Company, but it does not fly now.

Turkish Airlines has the biggest market share – 19%.

However, in 2005-2006, the share of Airzena was much larger and it was

“The niches were unoccupied at the Georgian market, and foreign
companies have mastered them. Foreign companies take up to one billion Lari fromGeorgiaannually in the form of profits, and they leave only 300,000. Therefore, it is
necessary to update the legislative framework. At the same time, in many
countries, local air carriers have advantages from aviation administrations,  at least based upon the grounds that they are
national companies. For example,  Lufthansa
will always have some advantages in Germany in comparison, for example,
with the Kazakh company, for the simple reason that Lufthansa is a national
airline. And here, it came to the fact that foreign companies operate on dumped
prices along the same airlines, on which Georgian air carriers fly. This is
done on purpose in order to do harm to Georgian airlines. Ultimately, if the
regulation is not changed, the Georgian companies will go bankrupt”, Mr. Zautashvili

According to George Kodua, CEO, Air Caucasus, the wrong policy and the
problems related to the activities of the Saakashvili’s Government caused the dominance
of foreign companies in the Georgian market.

“At present, the Georgian air market is completely dominated by foreign
airlines, and the state should undertake steps to ensure that their share has
declined from at least 80% down to 60%. Without the help of the government, it
is impossible to achieve this. Georgian companies must return to the market to balance
it. We should not interfere with each other, on the contrary, we must unite our
opportunity to compete with foreign air carriers”, Mr. Kodua said.

At the same time, he said that foreign companies have largely done a
useful thing – they started flying to new destinations and they have invested,
and, as a result, they have significantly increased the number of passengers.

“10 years ago, there were 300,000 passengers annually, at present, we
have 1.3 million. This is certainly very good, and foreign air carriers deserve
gratitude. But in the end, Georgian companies must return to the market, and
the state should facilitate us in doing this”, Mr. Kodua said.

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Appearance of Air Kazakhstan to contribute to lower air ticket prices

The appearance of a new airline, Air Kazakhstan, will contribute to
lower prices for air tickets, but it is difficult to predict when this happens,
Rosa Asanbayeva, President, Kazakhstan Tourist Association, believes. She told
this to

“Certainly, it’s good when new airlines appear in the market. This creates
competition in the market, and this may affect the prices of existing airlines.
However, I can not say for sure now how many percents will be subtracted from
the air tickets’ prices for Kazakh residents”, Mrs. Asanbayeva says.

In turn, the major players in the market welcome the emergence of Air Kazakhstan. “The
establishment of the new airline was also discussed with the in Samruk-Kazyna National
Welfare Fund (NWF) 12 months ago. We have withdrawn Fokker-50 aircraft from the
air fleet. At present, we can not operate our flights to some cities of Kazakhstan in connection
with the unsatisfactory state of the local airports’ infrastructure”, said Bella
Tormysheva, Vice President, Public Relations Department, Air Astana. To date, Air
Astana flies to 12 cities, while the country has 21 airports.

The SCAT Airlines believes that it is too early to talk about the scale
of the impact of the new airline to the existing ones. “The decision to form a
new airline was adopted by the State, it was probably thought out and we are
not given  competence to discuss or
evaluate this process. One will be able to talk about the impact of the new air
company for activities of already existing domestic air carriers only when the
new airline announces the planned destinations to be served”, said Victoria
Ulyanova,  PR-service Manager, SCAT

Nursultan Nazarbayev, the President of Kazakhstan, met with the President
of Bombardier, Pierre Baudouin, and announced on forming a new domestic
airline. Meanwhile, Kazakhstanwill have to pay 20 percent customs duty and VAT to import Bombardier aircraft.
At the same time, as regards the Customs Union, a decision was approved on
duty-free import of aircraft of the most common and cost-effective chairlift
capacity – 170-219 seats. According to Kazakhstan’s spotter, Alimzhan
Bisembayev, air companies can conclude their contracts for the new procedure before
January 1, 2017, and they can operate these aircraft on favourable terms until

“Bombardier CRJ Series 700/900 has a seating capacity of 70-100 seats.
Hence, when importing and operating them, airlines will have to pay a 20
percent duty and VAT. This brings the cost of the service to the plate
efficiency when buying Airbus A320/321 series aircraft. When more capacity and the
same price, the operation of A320/321 series wins in fuel efficiency”, Mr. Bisembayev
says. The expert also sees no reason to reduce air ticket prices. According to
him, it makes sense to expand areas of flights, and not duplicate them.

It has became known recently on forming a new airline, Air Kazakhstan. The
Air Company will carry out domestic flights. Recall that the airline with the
same name had already existed in the country’s history, and, in 2004, it went
bankrupted. Throughout the years, Air Kazakhstan was ruled by Azat
Bekturov and Erkin Kaliev. On January 1, 2004, the Air Kazakhstan’s obligation
amounted to KZT 78 billion. Assets at that date amounted to KZT 5.4 billion. On
February 17, 2004, the air company’s  management informed about the voluntary
transfer of domestic flights to SCAT, Atyrau Aue Joly and Sayakhat. On February
29, 2004, Air Kazakhstanoperated its last flight en route Hanover – Almaty.

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KZT six billion to be allocated to repair runway at airport in Uralsk, Kazakhstan

This information was announced today, February 27, 2014, at a meeting where
the Governor of the Western Kazakhstan Region met with representatives of the Kazakh

According to “My City” portal, Mukhtar Kul-Muhammed, Minister of Culture
and Information, arrived in the city to explain the President’s message.

 “Yesterday, before going to the Western
Kazakhstan Region (WKR), I had a meeting with the Prime Minister, Serik
Akhmetov”, Mr. Kul-Muhammed said. “The Western Kazakhstan Region has a great
potential, I know about this for a long time. This is a border region and, of
course, its potential is linked with the market of neighboring regions of Russia, but it
id useless to talk about it because normal planes do not fly to this region, let
alone mentioning about international flights. In this regard, we appreciate the
fruitful work made by the Governor, who has resolved this issue, and, this year,
they will begin building the runway. Money has already been allocated, and the
Prime Minister said that this issue is an edge”, Mr. Kul-Muhammed said.

As you know, the Oral International Airport” Oral is only nominally called to be international one.

Back in January 2012, Air Astana ceased operating flights to Uralsk. Then, the Airline
explained, “this measure was an enforced one, as the Uralsk Airportneeds a major overhaul runways for jet airliners so that they would be able to perform
safe takeoffs and landings”.

At the same time, the airport in Uralskis in a private property, and its runway was assigned to the balance of the country
last year only. And this year, they will begin reconstruction of the runway.

“The runway is provided to be made of concrete produced on the new
technology, and, after an overhaul, the airport will be able to take all types
of aircraft”, said Zamir Saginov, Chairperson of the Motor Vehicles Committee
under the Kazakh Ministry of Transport and Communications, who also arrived in
Uralsk today. “There are plans to start this work this year. The country allocates
KZT six billion for the overhaul”.

At present, the airport is in very deplorable condition, large capacity
aircraft can not fly here.

As regards the airport building, it is also very old. But there has been
no any issue so far to build a new terminal in Uralsk.

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Air Kazakhstan created for Bombardier aircraft operation

Yesterday, the President of Kazakhstan, Nursultan Nazarbayev, said that Kazakhstan will have a new airline, Air Kazakhstan. It
will be formed specifically for aircraft delivered by a Canadian company,
Bombardier. Air Astana named this new Airline to be “complementary” for Air
Astana: it will fly on domestic routes to the cities, where, for various reasons,
Air Astana can not fly. However, Air Kazakhstan appears on the market in

Kazakhstan is expected to create a new Kazakh
airline, Air Kazakhstan,
focused on domestic flights, Mr. Nazarbayev said during a meeting with Pierre
Baudouin, CEO, Bombardier, as reported by the President’s Press Service.

We are interested in Bombardier’s entering the Kazakh market. In this
context we plan to launch Air Kazakhstanairline to perform domestic flights”, the President is quoted by his Press
Service as saying.

President elaborated that Kazakhstan had already launched Air
Astana in partnership with BAE Systems. “We can build on the experience when
launching the new airline”, he said.

During the meeting, the parties discussed the Bombardier’s prospects in Kazakhstan,
in particular, the expansion of transport services in the country.

“In addition to cooperation in the aviation sector, we are interested in
projects in other sectors of the transport industry. Moreover, particular
importance is the cooperation in the training of Kazakh pilots and specialists
for maintenance centers in the country”, Mr. Nazarbayev said.

The Kazakh President noted the need to open a Bombardier’s representative
office in the country for closer cooperation and joint activity output at the
regional level.

The CEO of Bombardier, in turn, highlighted the meeting for the
development of further cooperation in various areas of the transport industry.

“We are ready to work to upgrade the quality of transport services and
boost the industry in Kazakhstan.
Delivery of aircraft is just a part of our joint operations. We plan to
transfer technology and share our experience. We will be providing trainings toKazakhstan’s pilots,
constructing aircraft maintenance centers (…) thus we have long term plans in Kazakhstan”, said
Mr. Beaudoin according to the press service.

News about a new company in the aviation market has been controversial. Only
Air Astana knew about its possible appearance: “The formation of the new
airline was also discussed in the Samruk-Kazyna NWF (National Welfare Fund) 12
months ago”, the Air Astana’s Press Service reported to The Press
Service was very well informed  so they called
the type of aircraft, which the Airline intends to operate, Bombardier Q400 (
turboprop plane for medium-haul routes).

The SCAT Airlines found out information about the new player from As regards Beck Air, they also did not know this news.

The market participants have an appropriate reaction on this. Air Astana
welcomed a new player, as this means additional regional air route network,
expected for the new airline, and it will significantly increase the
opportunities for the development of the aviation industry and will contribute
to economic growth of the country’s regions. “Importantly, the new airline’s
operations will be carried out in full accordance with international standards”,
emphasized by the Press Service. The Press Service explained to, the
new routes will complement the Air Astana’s routes – i.e. to fly to those
airports where Air Astana can not operate its flights due to technical
characteristics of runways and airport infrastructure.

Nikolai Buriakov, Commercial Director, SCAT Airlines, noted that the new
air company, after the cancellation of tenders for the allocation of frequencies,
will have to work in domestic transport by general market conditions. This
means, in particular, that it should pass the certification of IASO, as the Air
Company will not be able to operate without such a certificate since January 1,

“Formation of airlines costs a lot of money. It’s a difficult task to
estimate these amounts right now without some preliminary data. You need a fleet
and lots of pilots – and Kazakhstanhas a deficit of them. What does this mean? Foreigners will be brought or local
personnel will be redistributed – it has been unclear so far. The same applies
to other departments: you need technical staff, but there are no such people inKazakhstan,
you should have the management staff and sales professionals”,  says Mr. Buriakov. He assured that the
establishment of the airline through the purchase of the  existing business is not expected, as no one
talked about this with the airline management.

The Bek Air Airline declined to comment the situation citing the need
for more detailed acquaintance with this information.

According to airlines, the Kazakh air transportation domestic market has
surplus, as the aircraft currently fly with about 50% of load.

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Deliveries of new aircraft – a boon for the industry, a nightmare for carriers

While the world’s airlines are preparing to take hundreds and thousands
of new aircraft the industry itself starts sending alarms. Not so long ago, the
American airline, Republic Airlines, announced its plans to decommission 27 of
its 243 aircraft due to lack of qualified pilots. The air carrier also reported
a possible refusal to purchase 40 Bombardier CS300s. Another U.S. airline,
Great Lakes Aviation, suspended its flights on six air routes for the same
reason – because of the global shortage of pilots. The occurrence of similar
situations is due to many factors, but is it possible that the number of new aircraft
scheduled for production, is too large for the market?

In 2013, the world passenger traffic reached three billion
passenger-kilometers and, according to experts, it will grow to 3.3 billion
passenger-kilometers in 2014. With the growing demand for air travel, the world
manufacturers increase production rates of existing products and are
increasingly developing new ones. For example, Mitsubishi Aircraft Corporation has
recently announced that the first prototype of the Mitsubishi Regional Jet
aircraft was close to the stage of assembling, which has already received 165
firm orders. Chinese manufacturer, Comac, is moving in the same direction with
its single-aisle C919, which already has 400 orders. One of the market leaders –
the Airbus Concern – thinks seriously about developing a new model of the aircraft
in the niche between the A350-1000 and A380. To date, it is a busy place in the
market of its main rival, Boeing, with its 777 -300ER, 747-8, and 777X models,
will replace them in 2020. Many experts believe that the rivalry between the
two giants will sooner or later force the European manufacturer to undertake
the development of a new family of aircraft.

At the same time, more MRO providers around the world are experiencing a
shortage of qualified personnel. For example, the profitability of the Hong
Kong HAECO has been constantly declining due to lack of specialists, despite
all the measures taken. In 2013, the number of man-hours spent on basic
services of this company, fell by 18%, and profit – by 75.3%. Many Canadian
service providers are also concerned about the situation in the market of
technical personnel, especially when the current generation of technicians are
approaching retirement age, and they are replaced by very few ones.
Representatives of Pratt & Whitney in Singapore also reported a deficit
of new MRO professionals. And the results are similar to a recent survey in theMiddle East. Regardless of whether these are
symptoms of the individual facts of the same global problems of the industry
experts one believes that even theoretical reasons should be taken seriously.

“Decisions on the conclusion of certain carriers aircraft
decommissioning and abandonment of purchases of new aircraft due to lack of
staff also bothered other players in the market, which directly affect the
increased rate of aircraft production rates. Certainly, the crisis faced by
some U.S.carriers due to stricter requirements for pilot training – the minimum flight
hours were increased from 250 to 1,500 hours, as well as one has increased the prices
for training. Nevertheless, is it possible that in the course of delivery of
new air vessels to be clarified that the industry simply can not cope with so
many new airplanes?”, says Kestutis Volungyavichyus, CEO, FL Technics Training.

Due to the rapid growth of the world fleet of aircraft, the MRO
providers are forced to hire thousands of new workers to provide appropriate
support for the new machines. According to Mr. Volungyavichyus, despite
impressive forecasts for the development of the aviation market, they still
remain theoretical ones. The reality is that, at the moment, the development of
human resources is ahead of the technological growth of the industry.

“Over the past few years, a practice has been well established on the
market to send aircraft to those regions where there is the necessary resources
and capacities. However, what is the extent, to which the scale of outsourcing
can continue to grow?”, Mr, Volungyavichyus asks. “Of course, you can update
and not expand the fleet, but in this case, carriers face the need of
retraining the existing staff. Moreover, it should take into account the
emergence of a growing number of new airlines, which affects the growth of
demand for training of technical personnel from scratch. The market players
should take seriously to the situation until the problem, which seems difficult
today, has been worsened”.

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Airbus to raise A320 Family production rates

Airbus has decided to increase production of its best-selling
single-aisle aircraft family to 46
month in Q2 2016, up from the current rate 42. The new
higher production rate will be achieved gradually, with an intermediate step at
44 aircraft per month in Q1 2016.

“Based on the healthy market outlook for our best-selling A320 Family
and following a comprehensive assessment of our supply chain’s readiness to
ramp-up, we are ready to go to rate 46 by Q2 2016,” said Tom Williams,
Executive Vice President Programmes. “With a record backlog of over 4,200 A320
Family aircraft and the growing success of the NEO, we have a solid case to
increase our monthly output to satisfy our customers’ requirement for more of
our fuel efficient aircraft.”

Over the past five years, Airbus has steadily increased A320 Family
production, going from rate 36 at the end of 2010 to rate 38 in August 2011, then up to
rate 40 inQ1 2012 to reach 42 per month in Q4 of the same year.

With over 10,200 Airbus single aisle aircraft sold and more than 5,900
delivered to nearly 400 customers and operators, the A320 Family, which
includes the A318, A319, A320 and A321, is the world’s best-selling and most
modern single aisle aircraft family.

With a total of 2,610 orders the A320neo Family has captured some 60
percent of the market, clearly demonstrating its leadership. Incorporating new
more efficient engines and Airbus’ “Sharklet” large wing tip devices, these new
aircraft are set to deliver fuel savings of up to 15 percent.

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