Russian airlines are confronting failure over mountainous handling costs, a Association of Air Transport Operators warns, Kommersant business daily reported on Monday.
The total waste of Russia’s tip 35 airlines strike 14.5 billion rubles ($450 million) in 2011. Of these airlines, 22 companies finished final year in a red, after posting increase in 2010.
The airlines’ flagging formula come during a time of expansion in a Russian atmosphere newcomer market, that grew 11 percent final year and by 20 percent in a initial half of 2012, a Association said.
The rash expansion of fuel and belligerent upkeep costs is a categorical reason for a airlines’ losses, pronounced a Association, that unites over 100 airlines.
Air sheet prices increasing by 11.8 percent on normal in 2011 since aviation fuel prices soared 30.7 percent, while belligerent upkeep costs have risen by 119-211 percent in a past 5 years, a Association said.
Air navigation use costs jumped 124 percent for Russian domestic airlines and 200 percent for general lines in that period.
Regional airlines are a misfortune strike by a mountainous costs though they might stay afloat if a supervision cancels VAT for inner flights and import duties on aircraft with a ability of adult to 72 seats, a Association said.