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The year 2010 proved the analysts right in their forecasts. As far back as 2008 predictions foretold that 2010 would be the lowest point of the industry downturn.
The consequences of the world financial crisis severely affected the production sector, and shipments of business jets have roughly been halved - yet the Russian market seemed to buck the trend. Of course, the main reason for this is the complete absence of any General Aviation production facilities here. The situation for Busines
If you are a stranger to the professional circles of Russian business aviation operators and associated brokers engaged in VIP-flights, it is unlikely that you will be able to find a company with which to discuss the topic of domestic business jet flights. The talk is about passenger transportation between Russian cities by means of aircraft manufactured in the West and managed by foreign operators. In many cases the nature of such flights makes it possible to treat them as illegal cabotage.
A “rough landing” would be a good way to describe what happened to Russian business aviation in 2009. The year was even worse than the most pessimistic forecasts could have predicted. Players on this market are less diverse than their American and European counterparts in terms of the services they offer, so the crisis hit only charter brokers and operators.
The negative impact of the global economic downturn has naturally had its effect on business aviation in Russia. According to preliminary estimates, the number of flights in the region has dropped by 35% - yet the results appearing for the last month of the year showed signs of hope.
The traditional interest in charter during the December holidays was higher and resulted in almost 100% growth compared to autumn months. January—February 2010 will reveal whether the December increase was the
Unfavorable conditions for the fully-fledged development of business aviation in Russia makes aircraft operations difficult, and reduces the attractiveness of the services offered on the market, while rendering industry growth practically meaningless in economic terms. Solving problems leads to new problems, and solving these new problems is hindered by new barriers.
Is the economy a poison or cure for the industry? Only eight months ago the situation of the Russian business aviation market looked far less dramatic than what was happening elsewhere in the world. The economic turbulence hadn’t yet hit the industry so badly. It was certainly evident that a drop in raw materials value would do no good to the fledgling local market, but nobody expected a throw-back to 2006 flight levels.Instead of stabilizing, the market plunged into a state ...