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Pulkovo Airlines Has Money Troubles
Kommersant has learned that Alexander Golovin, acting general director of the Pulkovo state federal unitary aviation enterprise in St. Petersburg, signed an order on September 19 imposing strict cost-cutting measures in that company, which is in danger of ending the year with a loss of 300 million rubles. Market insiders say that the rising cost of airplane fuel and the presidential order dividing the aviation enterprise into separate airline and airport subdivisions, effectively different legal entities with different heads, led to additional expenses. The airline may lose its monopoly position in St. Petersburg as a result. Pulkovo Airlines has a mixed fleet of 43 aircraft. In 2004, it had an income of 10.99 billion rubles (compared to the Pulkovo Airport's 1.3 billion rubles) and net profit of 286.5 million rubles (250.3 million rubles for the airport). In fall 2006, the airline is to be incorporated with the Russia State Transportation Co., which specializes in transporting high officials.
Golovin's order entails increasing the responsibilities of airline economics and finance director Boris Gudkovich and commercial director Vasily Naletenko, who are to make analyses and implement cut-cutting measures. In addition, there is a hiring freeze and wage freeze to go into effect. The Pulkovo pres service has confirmed the existence of the anticrisis program and added that there are discussions taking place about cutting back or canceling some flights. The cost of aviation fuel in Russia has risen by 50-60 percent since April of this year. The crisis at Pulkovo is not expected to have massive effects on it or lead to its bankruptcy. The airline may lose its monopoly at Pulkovo Airport, however, as other Russian airlines step in to take up the slack created in its crisis.
All the Article in Russian as of Sep. 28, 2005
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