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Russia May Stop Navigational Service For CIS Airlines

RUSSIA MAY STOP NAVIGATIONAL SERVICE FOR CIS AIRLINES

30-09-2004 19:31
RIA Novosti

MOSCOW, September 30 (RIA Novosti) – On October 1, Russia may stop
navigational service in Russia for CIS countries’ airlines because
of the airlines’ debts, the Russian Transportation Ministry’s press
service reported.

“The Russian side raised the question of Armenia, Georgia, Kazakhstan,
Ukraine and other CIS countries’ airlines’ debts for navigational
service during flights through the Russian Federation’s territory
more than once,” the ministry’s press release said.

On September 3, 2004, the main center for planning and regulating air
traffic officially notified the CIS countries’ air authorities that
on October 1, 2004, it would stop providing navigational services
for their airlines in Russia if they do not pay off their debts,
the press release said.

The Transportation Ministry noted that this was not the first
notification. “The Russian side believes that the issue of paying
off the debts by bankrupt airlines that have stopped flying should be
considered by the inter-governmental commissions on cooperation with
the given countries,” the press release said, “while the problem of
the debts of the airlines that continue to fly should be considered
by the aviation authorities of the sides. The biggest difficulties
may be from bankrupt airlines that have stopped flying. In a number of
cases, there are grounds to assert that the companies were deliberately
bankrupted to avoid paying debts for navigational service.”

The ministry said that under the inter-governmental agreements on
air traffic between the Russian Federation and Armenia, Georgia,
Kazakhstan and Ukraine, the airlines whose planes fly along the agreed
upon routes are appointed by the governments of the sides.

The ministerial statement offers CIS airlines debt statistics.
Thus, Armenian companies flying via and within Russia owe $5,527
for navigation services, and companies who have by now terminated
activities, $2,681,544.

Russian and Armenian air authorities met at the negotiation table,
September 9. Armenia acknowledged the debt, and said it was willing
to join hands with the creditor, and together grope for ways to settle
the debt. Sixteen Georgian-based companies who no longer have flights
via Russia are owing more than $3.6 million fir navigation alone-a
stale debt of 1994-2001. Russian authorities appealed to Georgia on
the issue four times this month alone-all to no avail. The requests
stayed unanswered, points out the Transport Ministry.

Kazakh airlines who have terminated flights owe $5,515,783 for
1994-2001 alone. The government-authorised Kazakhstan Aue Zholy Co. is
the biggest debtor, with $3,559,005.

An official reply has come from Kazakh air authorities, who say they
are willing to settle the issue together.

Ukrainian airlines who are making flights in and via Russia owe a
token $251.96 for navigation services. 37 companies who have terminated
such flights, on the contrary, are more than five million dollars in
debt for 1994 through last year. Ukrainian Airlines accounts for 4.5
million of the lump.

Ukraine’s State Air Transport Department has taken the obligations
upon itself, and drawn a payment schedule. Payments never started,
however. A bilateral conference of September 20-22, 2004, acknowledged
the debt and drew a pattern to reschedule it, reports Russia’s
Transport Ministry.
From: Baghdasarian

Baghdasarian Karlen:
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