Russian aviation industry grows with economy

The Russian aviation industry experienced a rise in activity in 2010, which has been attributed to low costs of oil, competitive flight prices and the rebound of consumer confidence in the Russian economy.

International Cooperation Picks Up

Russian Technologies recently placed an order for 50 Boeing 737 jetliners valued at $3.7 billion. The agreement also includes purchase rights for an additional 35 planes. The 50 jets will be leased to Aeroflot and six regional airlines.

California-based Willis Lease Financial announced in early September that it signed an agreement with Superjet International to purchase six Sukhoi Superjet aircraft currently valued at $300 million U.S. The Sukhoi Superjet, a product of the premier Russian engine manufacturer Sukhoi, has been hailed since its debut in Komsomolsk-on-Amur, Russia in 2007.

“The Sukhoi Superjet represents a significant advancement in the regional jet market, and we believe it fills a need for efficient and affordable transportation to smaller regional centers,” said Charles F. Willis, President and Chief Executive Officer of Willis Lease.

Super Jet International holds an active branch in Moscow and a sales office in Washington.
 
Turkish carrier Atlasjet said last week that it will invest $110 million to form a company in the Russian aviation sector.

The joint venture with Russian building company NPA Mostovik and the city of Omsk will include a passenger airline service with flights starting in May 2011 and the construction of an international airport with a cargo terminal scheduled to open in 2013.

In a statement, Atlasjet highlighted the strategic advantages of a cargo terminal in southwestern Siberia, saying:

“Omsk is located in a region close to Kazakhstan, which raises the importance of the cargo terminal.  A railroad that ties Russia with China to the east and Europe to the west and goes through the airport is part of the project.”

Russian Passenger Traffic Up 30 Percent

According to Russia’s Federal Air Transportation Agency, Rosaviatsya, the number of passengers on Russian domestic and international flights rose from 24 million to 31.2 million in the first seven months of this year, an increase of 30 percent.

The agency also announced that Russia’s top five airlines are economically stable. Aeroflot, the market leader in the Russian industry, carried 6.3 million passengers between January and July, a 33 percent increase over the same time period in 2009.

Consumers have also shown interest in low-cost airlines such as Avianova, which offer flight prices as low as 250 roubles ($8 U.S.). Avianova moved from a top 20 domestic airline in January to the fourth-most flown domestic airline this past June.