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Russian AirUnion In Crisis?  
User currently offlineMyk From Canada, joined Jul 1999, 455 posts, RR: 0
Posted (6 years 3 months 3 weeks 1 day 17 hours ago) and read 2449 times:

Hello,

Just came across this article :

http://en.rian.ru/russia/20080902/116466473.html

Knowing that AirUnion has ties with Star Alliance (LH and OS are pushing to get them in Star), its not a very good news !

Maybe all this fuel problem faced by the airline industry, will eventually clean up the sky of some fragile airlines like those who are in this Union ?

(Used search function without finding a thread about this)

14 replies: All unread, jump to last
 
User currently offlineA342 From Germany, joined Jul 2005, 4705 posts, RR: 3
Reply 1, posted (6 years 3 months 3 weeks 1 day 17 hours ago) and read 2425 times:

Related news:

http://www.flightglobal.com/articles...-airunion-with-24000t-of-fuel.html

Screw Chapter 11 or things like that, give fuel to the airlines!  biggrin 



Exceptions confirm the rule.
User currently offlinePanHAM From Germany, joined May 2005, 9746 posts, RR: 31
Reply 2, posted (6 years 3 months 3 weeks 1 day 16 hours ago) and read 2366 times:

No good news for LH at all, IIRC they also ( or a company owned by the majority owners of AirUnion) run Ktrasnojarsk airport and as we know, the Russians blackmailed LHCargo earlier this year to relocate their cargo hub there.

I read other news that Aeroflot willbe stepping in if Air Union fails. Will be interesting to watch the developments., LHCargo should use the Jade 744Fs only for flights to the Far East that have to be routed over Russian airspace and canx the tech stops altogether.



Es saugt und blaest der Heinzelmann wo Mutti sonst nur blasen kann. Frueher war mehr Lametta.
User currently offlineAddd From United States of America, joined May 2007, 397 posts, RR: 0
Reply 3, posted (6 years 3 months 3 weeks 23 hours ago) and read 2165 times:

In a nutshell, AirUnion is dead - as I am typing this, hundreds of passengers remain stranded in airports throughout Russia (see article below) with government providing fuel to the airline just to get people to their destinations. Aeroflot is indeed stepping in in a void left by AirUnion - most remarkably, by launching 2 daily flights from Moscow to Krashoyarsk (KJA), the Siberian city of approx. 1 million people and former stronghold of AirUnion.

Star Alliance perspectives on the Russian domestic market look rather dire indeed - I guess LH will have to rely on direct flights from FRA/MUC to secondary Russian cities (which has been their strategy for a while anyway).

http://www.moscowtimes.ru/article/1009/42/370633.htm

The Moscow Times » Issue 3980 » Business

AiRUnion Passengers Stranded
03 September 2008
Hundreds of passengers were stranded around the country Tuesday due to delayed AiRUnion flights, as airports keep planes grounded because of the company's outstanding debt.

The alliance of five regional airlines, which together comprise 12 percent of the domestic market, has been struggling with debt from rising costs for jet fuel.

Airports in Krasnodar, Anapa and Sochi are refusing to fuel AiRUnion planes unless the company prepays in full, while some passengers have been forced to wait for up to five days, Channel One television reported. In Novosibirsk alone, 400 people are awaiting flights. The company has debts of 1 billion rubles ($41.3 million), RIA-Novosti reported.

Prime Minister Vladimir Putin called on Russian Technologies — which is set to take over the government stakes of three of the alliance's carriers — to direct attention to solving the problem. "It is clear that the state should get involved in this process," Putin said in Uzbekistan.

On Putin's orders, the Federal Reserves Agency announced last week that it would provide AiRUnion with 24,000 tons of fuel in the period from August 26 to Sept. 14 under a guarantee from Russian Technologies.

The agency's fuel has failed to solve the problem in some isolated regions, however. Planes flying out of Yuzhno-Sakhalinsk, on Sakhalin Island, cannot refuel because the nearest cities with fuel reserves are Vladivostok and Krasnoyarsk, regional officials said Tuesday.


User currently offlinePEET7G From Hungary, joined Jan 2007, 695 posts, RR: 0
Reply 4, posted (6 years 3 months 3 weeks 20 hours ago) and read 2100 times:

And our government sold MALEV to these clowns...  banghead 


Peet7G
User currently offlineMIAMIx707 From , joined Dec 1969, posts, RR:
Reply 5, posted (6 years 3 months 3 weeks 19 hours ago) and read 2061 times:

"The move forms part of a plan aimed at enabling the creation of a new, economically viable carrier that would incorporate the assets of AirUnion, GTK Rossiya, KMV and Orenburg Airlines and be capable of competing with dominant flag carrier Aeroflot"

From the first link, I don't really understand that part. Why is the Kremlin wanting to create an airline to compete against Aeroflot?

Is Air Union (or the individual airlines forming it) state owned?


User currently offlineTu204 From Russia, joined Mar 2006, 1256 posts, RR: 17
Reply 6, posted (6 years 3 months 3 weeks 15 hours ago) and read 1969 times:

The situation is indeed worrying. KrasAir, as you remember owes Illyushin Finance Co. a reasonable sum of money for the lease of two IL-96s that they have not paid for over a year, they owe fuel companies large money for the fuel debt, and the Federal Aviation Service of the Russian Federation has prohibited KrasAir for selling flights for the winter season, because what KrasAir was doing for the last year was getting using money from ticket sales from 6months ahead to pay for the fuel for their planes NOW. This could only work for so long, untill the debt caught up with them. Now, the Federal government is screwed into paying for their fuel to get them out of this shit. Many of the cities that KrasAir flies to are remote cities, like Norilsk, an industrial city in the far north, so the government has to get the citizens up to their places of work. So what you have now is two aircraft stranded in Norilsk, because the government gave them the fuel to fly Sochi - Norilsk and Novosibirsk-Norilsk flights, but they have no fuel to get back. Same situation as with Zoom in Canada.


I do not dream about movie stars, they must dream about me for I am real and they are not. - Alexander Popov
User currently offlineKrisYYZ From Canada, joined Nov 2004, 1593 posts, RR: 0
Reply 7, posted (6 years 3 months 3 weeks 13 hours ago) and read 1898 times:



Quoting PEET7G (Reply 4):
And our government sold MALEV to these clowns...

Peter Leonov said in a recent interview that AirUnion's problems will not affect MA, but I don't believe that for a minute. If AirUnion's owners have to start selling off assets to pay for its debt, then I would think MA being a foreign investment will be one of the first things sold off. At least this "strong cooperation" between MA and AirUnion is less likely now given the fact that the main concept was schedule and fleet harmonization between the two airlines and now, AirUnion can't even afford to gets its flights off the ground.


KrisYYZ


User currently offlineUzzzer From Ukraine, joined Dec 2006, 139 posts, RR: 0
Reply 8, posted (6 years 3 months 2 weeks 6 days 12 hours ago) and read 1769 times:



Quoting KrisYYZ (Reply 7):
AirUnion's problems will not affect MA, but I don't believe that for a minute

Well, not a rare case of the airline feeling insecure, because of the stockholder problems.

Similar case with quite successful PS, co-owned by OS. The worries here are that should OS face the destiny similar to SwissAir at its time, it may bury the airlines it ownes as well...


User currently offlineMA346 From Montserrat, joined Sep 2007, 13 posts, RR: 0
Reply 9, posted (6 years 3 months 2 weeks 6 days 11 hours ago) and read 1735 times:

[quote=PEET7G,reply=4]And our government sold MALEV to these clowns...

Let's be positive. This way MA could get into the hands of Aeroflot. Feel better now?
Give me the worst scenario.


User currently offlineJFK787NYC From United States of America, joined Apr 2007, 812 posts, RR: 2
Reply 10, posted (6 years 3 months 2 weeks 6 days 11 hours ago) and read 1724 times:



Quoting PEET7G (Reply 4):
And our government sold MALEV to these clowns...

People Malev is not owned by AirUnion in anyway.

Malev is owned by the same person that owns AirUnion. Boris Abramovich

Please this is all nonsense and I am almost certain that Boris Abramovich bought Malev because he knew that this was coming. The Russian Government made this happen to get Krasnoyarsk Airport.

Why does the Russian Government need so many carriers to be owned by the government anyway? Why don't they just move the assets of AirUnion to AeroFlot and get it over with, This is becoming annoying

Aeroflot, Rossiya & Now AirUnion are all majority owned by the Russian Government, Just because they are three different names does not mean that the prices will be better because they are competing with each other. It just means the Russian Government is still consolidating Strategic Assets under different names so the average public won't know that they are all flying the same airlines union under different names.


User currently offlinePylon101 From Russia, joined Feb 2008, 1609 posts, RR: 0
Reply 11, posted (6 years 3 months 2 weeks 6 days 10 hours ago) and read 1698 times:

With more than 200 airlines in a 140 million country is way too much.
I don't see any government conspiracy here (though it is always tempting).

It is a process of re-structurization of civil aviation in RUS. Which was expected and would be for better.

As of today we are aware of merger AirUnion with Atlant-Soyuz (pumping Moscow cash into assets) and a number of regional airlines - KMV and Orenburg Air. If "Rossya" joins it will create a more stable airline able to compete with SU, Transaero and S7.

As to shares our friends should see obvious difference between federal and regional shares.
My opinion is that dominance of Boris Abramovich (not to confuse with famous Roman A.!) is collapsing. At this point - with present fuel prices and renovation of the fleet - more federal and regional involvement may be for better.

It's better for economy; for revealing trends where to the industry is moving. And for consumers.
AirUnion fares were unbelievably steep. One could fly from Moscow to Buenos Aires for less money than from Moscow to some Far East Russia's parts.


User currently offlinePylon101 From Russia, joined Feb 2008, 1609 posts, RR: 0
Reply 12, posted (6 years 3 months 2 weeks 5 days 13 hours ago) and read 1562 times:

Wow, all new post AirUnion airline is going to have its base in Vnukovo airport.

Which means that Moscow will have 3 full-scale international airports:
SVO
DME
VKO

I guess it's too much....and not very convinient having in mind traffic nightmare.


User currently offlineSashA From Russia, joined May 1999, 861 posts, RR: 0
Reply 13, posted (6 years 3 months 2 weeks 4 days 17 hours ago) and read 1460 times:



Quoting Pylon101 (Reply 12):
I guess it's too much....and not very convenient having in mind traffic nightmare.

I heard there were fancy new trains connecting Moscow city centre with major aiports VKO and DME? SVO is the closest to the city itself so shouldn't be a prob either, reached by a regular city bus service. Sorry, I am talking from a standpoint of a transit passenger...

I also don't get why the govt is so concerned about AirUnion, literally pulling it by its ears out of the swamp its management got it into. What were they hoping that the depts would one day miraculously vanish and get forgotten? It's business, for sakes, if you can't stand the heat stay of the kitchen - if airline fails, it should clear the skies and free up the slots and pax load for others. Why play chess games with injecting AirUnion with the extra airlines...

Meanwhile the passengers are stranded and news report that it'd take 3-4 more days to clear the backlog of flights. Gee... we don';t have ORD or LHR capacity airports - why so long?



An2/24/28,Yak42,Tu154/134,IL18/62/96,B737/757/767,A310/320/319,F100,BAe146,EMB-145,CRJ,A340-600,B747-400,A-330-300,A-340
User currently offlineJfk787nyc From United States of America, joined Apr 2007, 812 posts, RR: 2
Reply 14, posted (6 years 3 months 2 weeks 4 days 14 hours ago) and read 1406 times:



Quoting Pylon101 (Reply 11):
With more than 200 airlines in a 140 million country is way too much.
I don't see any government conspiracy here (though it is always tempting).

It is a process of re-structurization of civil aviation in RUS. Which was expected and would be for better.

As of today we are aware of merger AirUnion with Atlant-Soyuz (pumping Moscow cash into assets) and a number of regional airlines - KMV and Orenburg Air. If "Rossya" joins it will create a more stable airline able to compete with SU, Transaero and S7.

As to shares our friends should see obvious difference between federal and regional shares.
My opinion is that dominance of Boris Abramovich (not to confuse with famous Roman A.!) is collapsing. At this point - with present fuel prices and renovation of the fleet - more federal and regional involvement may be for better.

It's better for economy; for revealing trends where to the industry is moving. And for consumers.
AirUnion fares were unbelievably steep. One could fly from Moscow to Buenos Aires for less money than from Moscow to some Far East Russia's parts.

There are 200 Airlines in Russia that is correct. 195 of them have only one or two soviet leftover planes flying one route, You cannot compare them to the actual big airlines of Russia.

You said that AirUnion tickets are expensive.....Which means that they are making money....Government involvement will not make tickets cheaper....The Russian government is not looking to open a competing airline to lower the prices on flights.

Flights in Russia are unbelievably high and they are going to stay that way for the time being. AirUnion either expanded to fast and took upon themselves too much debt or something more is going on.

The reason why Boris Abramovich bought Malev is because he knew this was coming sooner or later and this was his backup plan. Everyone also needs to remember that Mr. Boris Abramovich & His brother are sitting on personal financial bank accounts equaling to at least $500 Million Dollars with that type of money they could seriously pickup Malev if they get kicked out of Russia.


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