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Moscow Vnukovo Airport seeks to draw over airlines from Domodedovo

14:39, 20 февраля 2012

Last year’s bankruptcies and mergers caused a number of air carriers to cease operations. As a result Vnukovo’s passenger flow fell down by 13% reaching 8.2 million, and the number of flights decreased by 5% to 142.5 thousand. Nevertheless Mr. Vantsev, Chairman of the Board of International Airport Vnukovo PLC still expects the passenger flow to grow over the next two years. Mainly because of the airlines coming to us from Domodedovo.

 

In 2010 Moscow Airline ceased to exist; last year we said goodbye to Kavminvodyavia and Continent, SkyExpress and Dagestan Airlines. Vladivostok Avia cut the volumes of transportation due to the transfer of some shares to Aeroflot and consequently moving a part of the flights to Sheremetyevo. Same applies to DonAvia – said Mr. Vantsev.  At the same time, he goes on, Vnukovo’s base carriers UTAir and Yakutia have significantly built up their operations. “And by the way unlike the failed airlines that used to be in constant debts, UTAir and Yakutia pay well. The latter is even working on pre-payment basis, while the other one with all its huge volumes only owes for four days. We are pleased to work with such well-organized partners who keep constantly developing their businesses. And it’s good for passengers, too, as the air travel becomes more reliable” – Mr. Vantsev points out.

 

According to his forecasts Vnukovo’s passenger flow growth over the next two or so years will be accounted for some airlines moving to this airport from Domodedovo. “I expect Domodedovo to lose some 8 or 9 million of its passengers. We all remember 2002-2003 when the airlines were taking off from overcrowded Sheremetyevo en-route to newly-built state-of-the-art Domodedovo. Moscow had nothing better at that time. But today the market welcomes a new product – Vnukovo” – states Vitaly Vantsev. Among Vnukovo’s strong sides he sees its bigger area (it’s already 30 thousand square meters more than Domodedovo), thus more comfort for passengers.

 

The head of Vnukovo revealed that the airport has already signed contracts with Lufthansa and Turkish Airlines; they are going to start flying from Vnukovo upon implementation of spring-summer schedule. By March 1 the airport hopes to have all the necessary documents and to launch international services from brand new terminal A on March 26. “Besides that we are in the middle of negotiation process with other airlines as well. As early as this spring I was saying about the “3 alliances – 3 airports” strategy. Sheremetyevo has Aeroflot and Sky Team, Domodedovo keeps S7 and OneWorld and Vnukovo goes to UTAir and Star Alliance. And it is already on the way to realization” – said Mr. Vantsev.

 

He also added that next year they going to invest 5 billion roubles (~$170 thousand) into completion of the terminal and modernization of aerodrome area, including both runways, one which will be 500 meters longer, laying of a vast network of taxiways and reconstruction of 400 square meters of the main apron Vnukovo-1 that is to become 240 square meters bigger. Federal budget has already allocated 21.8 billion roubles (~$730 million) for these works. By 2013 the airport plans to start servicing Airbuses A380. A designated 2-storey jet bridge with 2 passages on the lower level and 1 on the top one will be constructed for this purpose.

 

Vitaly Vantsev reminded that Vnukovo is about to merge with Sheremetyevo. The City Government has already signed a resolution governing the transfer of the airport’s shares from Moscow to federal authorities. Soon it’s going to be put on the balance of the Federal Agency for State Property and then we’ll carry out a tender and hire a company to evaluate the company” – explained Mr. Vantsev, adding that there are various types of such evaluation, including appraisals of business, expenses, property, debts. “About the expanses I can say that over the last five years the airport has spent 40 billion roubles (~1.3 billion) on construction works. So in general the airport can cost around 60 billion roubles (~$2 billion)” – Mr. Vantsev defines.

 

According to his forecast, after the merger combined passenger flow of two airports might reach 60-65 million people. “With such figures we will become third in Europe and may be able to launch IPO in some 5 years” – the Head of Vnukovo airport predicts.

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