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Airlines to compete for bankrupt Transaero's air cargo market share

WITH Transaero's cargo business set to close down as early as this week, rival airlines AirBridgeCargo Airlines (ABC) and Aeroflot are competing to gain control of its market share.

Some Transaero services have already been disrupted and Kyiv Airport in Ukraine has reportedly held an aircraft for non-payment of fees. The carrier is said to owe US$4 billion.

The air transport agency FAVT has said that a decision is imminent on the bankrupt airline's ability to operate safely. It has been ordered to stop ticket sales after a possible deal with Aeroflot to take over 75 per cent plus one share failed.

Transaero had a six to seven per cent share of the one million tonne market for Russia's cargo airlines last year, according to cargo market analyst for Boeing Tom Crabtree.

"We really don't know where that traffic will end up," he said, speaking at the Caspian Air Cargo event in Baku, reported London's Loadstar.

ABC has been picking up market share, controlling 63 per cent of the market measured in freight tonne kilometres last year, representing growth of 19.2 per cent, while parent Volga-Dnepr's share rose by 12.8 per cent.

In contrast, Aeroflot's market share contracted by 1.1 per cent to 13.2 per cent

ABC regional sales director Oleg Makushkin said the market for Russian carriers was getting tougher. "We are seeing new challenges ?geopolitical factors and industry sanctions on Russia from the west."

Nevertheless, the airline is planning further growth. "We are opening up new markets such as Singapore and Chongqing, and we are planning to discover the domestic Russian market this year. It has enormous potential and we are seeing a chance to start this with a mixed fleet."

DHL Global Forwarding CEO for Eastern Europe, Kerem Inanc, was also upbeat, saying "the market before was mainly imports but now exports are growing."

Mr Crabtree highlighted that domestic Russian cargo accounted for just half the region's market, with 38 per cent of all CIS volumes going through Moscow. The next largest country in volume terms was Kazakhstan, with 10 per cent of the volumes.