newstodate.aero
Aug 5, 2008 (newstodate): Russia's airline industry may be even harder hit by skyrocketing fuel prices than their western competitors.
Most Russian airlines are forced to buy jet fuel from one national provider, and the absence of competition has driven prices up by some 70 percent since the start of the year, and by 100 percent since summer 2007.
In May, 2008, average European jet fuel prices stood at USD 1,270 per barrel, while jet fuel prices at Moscow airports ran as high as USD 1,530 per barrel.
This takes a high toll on the Russian airlines' waning profitability, and informed sources claim that only a handfull of Russian airlines may eventually survive, including Aeroflot, S7 Sibir Airlines, state-owned Rossiya, Transero and UTAir.
Most Russian airlines are forced to buy jet fuel from one national provider, and the absence of competition has driven prices up by some 70 percent since the start of the year, and by 100 percent since summer 2007.
In May, 2008, average European jet fuel prices stood at USD 1,270 per barrel, while jet fuel prices at Moscow airports ran as high as USD 1,530 per barrel.
This takes a high toll on the Russian airlines' waning profitability, and informed sources claim that only a handfull of Russian airlines may eventually survive, including Aeroflot, S7 Sibir Airlines, state-owned Rossiya, Transero and UTAir.