The Russian news agency ITAR-TASS reports that the country's aviation industry is in dire straits, and a number of airlines face bankruptcy due to jet fuel prices. Experts say that because the cost of aviation fuel in Russia has risen over 70%, as many as half of the nation's airlines could go under. Rising fuel prices have made the operations of about 60% of airline jet fleets unprofitable, according to Alexander Batkov, the president of the Association of Russian Aircraft Manufacturers.
Although many Russian airlines are already on the verge of falling into bankruptcy, even tougher times lay ahead. Industry analyst Yelena Sakhnova says while the demand for air travel is traditionally high during the summer peak, demand falls off considerably in the low season of October to February, and the air carriers may be short of revenues to pay to fuel suppliers.
Only five of the country's top 20 carriers - Aeroflot, S7, Rossiya, Transaero, and YUTair – are likely to survive due to their strong partnership with the government and large corporations. (Breaking Travel News)
0 comments:
Post a Comment