ASG: Market Share of Western Regional Aircraft in Russia to Double in 2011

According to Avia Solutions Group, Russian regional carriers will acquire from 30 to 70 Western manufactured regional aircraft in 2011. Russian and Soviet manufactured regional aircraft still dominate the fleets of Russian airlines. Currently carriers operate around 400 regional aircraft (with seating for 20 to 70 passengers). Only 59 of these aircraft are manufactured in the West. With up to 70 new Western aircraft in 2011, their market share could increase from 15 to up to 30 percent.

Russia is experiencing a growth in demand for regional air services. With the lack of competitive solutions from local manufacturers, Russian carriers need to replace aging Soviet and Russian aircraft and renew their fleets.

“The most promising candidates for fleet renewal are ATR42/72 and BombardierQ300 turboprops, as well as Bombardier CRJ100/200 and Embraer 145 regional jets. Prices for these aircrafts are less affected by market fluctuations. Their technical specifications are well suited for regional operators“ – said representative of Avia Solutions Group in Russia Alexey Ivanov.

However, regional Russian carriers still face a number of obstacles associated with leasing, acquiring or operating Western manufactured aircraft.

“Currently only 5 airlines in Russia operate Western manufactured regional aircraft. These aircraft are uncommon in airline fleets due to somewhat difficult acquisition procedures. Most of regional air carriers are not experienced in working with Western lease companies. Additionally, there is lack of technical support and maintenance infrastructure, shortage of qualified technicians for these aircraft, as well as it is challenging to import spare parts into Russia. Besides, some regional airports lack infrastructure to service such aircraft” – noted representative of Avia Solutions Group in Russia Alexey Ivanov.

In 2009-2010 Avia Solutions Group took part in more than 25 aircraft lease deals. The group provides consulting services on aircraft acquisition, including market research, aircraft type selection and supporting in negotiations with aircraft lessors. Moreover, companies in Avia Solutions Group also offer aviation training and crew lease services, train aviation technicians and provide aircraft repair and maintenance services.

About Avia Solutions Group

Avia Solutions Group is a leading integrated aviation solutions provider in Eastern Europe, offering aircraft repair and maintenance, aviation training, airport ground handling and refueling, charter and ASCMI flight, as well as business jet maintenance services. Companies in Avia Solutions Group operate across European, Russian and CIS markets. Avia Solutions Group is listed on the Warsaw Stock Exchange.