Volga-Dnepr Group / Press-center / Media Coverage

Soaring oil price becomes a two-edged sword for Russian air cargo sector

04/17/2008

Development of the Russian air cargo market and this country's potential wider role as an international logistics hub is being threatened by high fuel costs, aircraft shortages and continuing infrastructure weaknesses. This, at least, is the view of senior executives with one of Russia's leading airline groups, Volga-Dnepr. On the air cargo side, for example, the group's scheduled freighter service airline AirBridgeCargo is currently developing B747F services linking Russia with the Far East, Europe and potentially by the end of this year, North America (Ti Logistics Briefing, Briefing, April 4). In the hub context, the group and several partners earlier this year opened a new cargo terminal at Krasnoyarsk airport, Siberia, which, they said, was "forecast to evolve into Russia's first world-class multimodal air cargo hub."

Commenting first on prospects for the Russian air cargo market, AirBridgeCargo senior vice president strategy and commercial Denis Ilyin (pictured) suggests high oil prices are proving to be something of a two-edged sword for airlines. On the plus side, oil-related wealth was stimulating greater Russian consumer demand for luxury items, boosting air cargo import traffic.

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