Rossiya - Russian Airlines

Russian network airline traffic continues to rebound, but without LCCs

Russia is becoming a serious force in aviation through the significant growth reported in both passenger and cargo transportation over the last 11 years. It is no surprise, partly considering the massive land area the Russian Federation covers, that aviation is increasingly seen as an efficient way for mass transportation of people and goods across the nation and further afield.

2009 saw the first decrease in passengers carried in the century’s first decade, with numbers declining 9.5% to 45.1 million. However starting in the following year, traffic rebounded with positive figures reported in 2010. The rebound is continuing in 2011, according to the latest traffic figures released by Russia’s Federal Air Transport Agency. The figures show overall growth in both passenger and cargo volumes in the 10 months to Oct-2011, including a 12.3% year-on-year increase in passenger numbers.

This growth comes from the nation’s network carriers, with low-cost operators making hardly any noise in the market. Despite the ever-increasing demand for air travel, Russia still does not have a significant level of low-cost carrier penetration from home or foreign carriers, and the LCC sector took a step back earlier this year with the bankruptcy of Avianova.

Russia can lay claim to being one of the world's most dynamic air transport markets

Sometimes seen as the laggard of the BRICs, Russia’s recent performance demonstrates it is anything but. The Russian Government, aviation regulators and major industry players are increasing efforts aimed at addressing structural inefficiencies, which should drive future growth and unlock the potential of a country ideally suited to air transport.

Chinese airlines report decline in cargo volumes in May-2011

The spectacular rebound in China’s airfreight demand of 2009 and 2010 has slowed notably in 2011. Chinese mainland airlines reported year-on-year declines in cargo volumes in May-2011, marking the second month of year-on-year reductions so far this year. The two reductions in 2011 follow a period of continuous cargo growth that commenced in Jun-2009, as the country’s manufacturing sector recovered at a cracking pace after the global financial downturn.

Mandala Airlines suspends service, applies for time to restructure. Indigo Partners 49% owners

All Of Indonesian LCC, Mandala Airlines' flights were suspended effective 13-Jan-2011. Mandala yesterday announced it had requested “suspension of payment obligation to the Commercial Court allowing its management to restructure the business and to restore the airline to profitability”.