24
GA
/ Vol. 5 / No.9 / SEPTEMBER 2013
International News
Recently Russian air travellers have
received encouraging news that yet
another attempt to launch low-cost
flights will be made. This time people
may have slightly more optimism as
the talks about a no frills airline come
from the Russian national carrier
- Aeroflot. However, with almost
30% higher pilot salary rates than
the ones in neighbouring Europe,
local airlines might find it difficult
not only to prove that Russia is able
to have its own low-cost airlines
after all, but also to compete with
the increasing number of foreign
discounters in the regional market.
`Despite being somewhat
detached, the Russian air
transportation market cannot help
but develop in line with the major
global trends. Regardless of the
fact that there is no such thing as
alternative airports in the country
and ground handling and fuelling
industry has only recently begun
de-monopolizing, the Russian
market is certainly attractive to
most European low-costers due to
its immense growth rates. Wizz Air,
easyJet, Blu Express these are
the discounters which are already
carrying (or are soon to start) Russian
air travellers. In order to compete
in the increasingly intensifying
market as well as to satisfy a
natural demand for no-frill flights,
Russians must find ways to raise
effectiveness and lower operational
costs. Otherwise developing a
locally-based low-cost carrier may
prove an unrealistic endeavour.
While being serviced in Russia,
both foreign and local carriers are
more than likely to be subjected to
same high airport handling rates.
But at the same time, European
low-costers have certain advantages
which allow them to reduce their
expenses, including the sale of
non-refundable tickets or charging
for on-board meals and baggage
transportation extra. Meanwhile, for
Russian carriers the aforementioned
services are mandatory and must
be included in the ticket price.
Pilot salaries also come
as a significant advantage to
foreign carriers. Average pay for
Commanders in Europe is around
USD 7-9 thousand, while their
Russian counterparts earn as high
as USD 11-12 thousand. With
regard to First Officers, in certain
cases the salaries in Russia may
be twice as high as in Europe. The
factor which keeps Russian pilots'
salaries high is poor competition on
the local job market as the Russian
training industry doesn't keep up
with airlines,' development pace.
Foreign pilots could have helped
Russian carriers to reduce their
HR-related costs, but unfortunately
they are still forbidden from entering
the market. Though the majority
of Russian market players have
supported the amendment to the
current regulation which would allow
foreigners to pilot aircraft operated
by Russian airlines, the bill has
yet to be discussed by the Russian
Parliament. Furthermore, the bill
doesn't propose the liberation of the
entire pilot market. It includes only
temporal, five-year long facilitation of
employment of foreigners, based on
200 pilots quota per year. Considering
the ambition of the Russian market,
the number is far less than sufficient.
`According to the current law,
the upcoming Russian low-coster,
which is probably to operate under
its own AOC, must have at least 8
aircraft in its fleet. In the long run
the carrier is expected to operate a
fleet of approx. 40-50 aircraft. This
means that the discounter alone
might employ around 500-600 pilots
thus having the strongest interest in
future foreign pilot quotas. Should
the Russian authorities acknowledge
the low-coster's specific needs for
cheaper labour force, other Russian
carriers will be left with practically
no chance of successfully competing
with the European low-cost airlines
rapidly penetrating the Russian
market. That is why the industry
should reconsider the issue of
allowing a larger amount of foreign
pilots to its market. If it does so,
there are plenty of Russian-speaking
pilots out there who are ready to
move to Russia already today. ·
Incipient Russian low
cost airlines market
calls for cheaper labour
by Skaiste Knyzaite, CEO of AviationCV
Uganda Airlines
to relaunch?
The Ugandan government will
apparently go ahead with plans
to relaunch Uganda Airlines
as the national carrier to take
on the dominance of foreign
airlines and take advantage of
a growing economy, boosted
by a budding oil industry and
tourism. Mismanagement
during the 1990s and weak
demand eventually lead to the
demise of then airline in 1997.
The airline was placed
under liquidation in 2001 after
attempts to attract investment
from several foreign carriers,
including British Airways and
South African Airways failed.
The carrier was established
24 years earlier to replace the
service operated by East African
Airways an airline run jointly
by Kenya, Tanzania and Uganda.
Plans to invest some
$400million in the expansion
and development of the
country's domestic airports,
especially Entebbe Enternational
Airport, have been unveiled.
Improvements at Entebbe will
put the airport in a better position
to compete with other regional
hubs in Kenya and Tanzania.
Uganda's Civil Aviation
Authority has recommended
that a revived Uganda Airlines
be protected by legislation from
political interference and be
adequately capitalised to operate
as a viable commercial entity.
There is as yet no
indication of which routes
will be oeprated by Uganda
Airlines but it has been reported
that the government has
stated that the carrier would
reclaim international routes
previously operated by it.
A reincarnated Uganda
Airlines will inevitably compete
with Air Uganda which has
steadily grown its business since
launching in 2007, operating
a regional network mainly to
neighbouring countries covering
Kenya, South Sudan, Tanzania,
Burundi, Rwanda and Somalia. ·
Switzerland-based Vertis Aviation,
part of the independently owned
aviation company 28 East Group, has
announced that a Bombardier Global
6000 added to its growing portfolio
of marketed aircraft on August 1.
The ultra-long range aircraft
will be positioned primarily in
Johannesburg and operated by
Anglo American, in a move
designed to satisfy the growing
demand for business jet travel in
and around the African continent.
The Global 6000 will be the
company's first jet actively marketed
from an African location and further
underpins Vertis' strategy of creating
an international network. Operated
by a local corporate flight department
Vertis anticipates that it will fulfil
missions both inter- and intra-
continentally to satisfy the expanding,
discerning African client base seeking
prestigious ultra long range aircraft.
"We are very excited about the
possibilities that this immaculate
Global 6000 offers for our
international charter clients. With
its ultra-long range and short-field
capabilities it is ideal for work on
the African continent which requires
aircraft that can cover vast distances.
This addition marks the beginning
of our expansion strategy in Africa
which we believe offers great potential
for further development. We're
already seeing a high demand for
charters between Brazil and Angola,
Lagos and Johannesburg, London
and Johannesburg and anticipate
the route map will just become
more complex as the continent's
requirements expand," commented
Erica Da Veiga, partner at Vertis.
The 2012 Global 6000 which is
configured with 14 seats features a
contemporary and comfortable interior
with ample galley, dedicated crew rest
area and luxurious private stateroom.
A full on-board communications
suite features internet access and
Wi-Fi connectivity along with a
full IFE system. With a 6,000 nm
range, 488 kt cruise speed and its
brand new interior, Vertis expects
the aircraft will prove popular with
heads of state and government
travel in addition to CEO's and
senior business executives needing
comfortable, long range aircraft. ·
Vertis Aviation Global 6000 moves to Johannesburg