Page 1 of 12 10 July 2020 No. 1124 DEV Published biweekly – available by annual subscription only – www.mombergerairport.info Editorial office / Subscriptions Phone: +1 519 833 4642 e-mail: [email protected] Managing Editor / Publisher: Martin Lamprecht [email protected] News Editor: Paul Ellis [email protected] – Founding Editor: Manfred Momberger Momberger Airport Information by Air Trans Source Inc. – international news & data – published since 1973 AIRPORT DEVELOPMENT International News Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website. Focus Region: Eastern Europe RUSSIA Three leading Russian airports, all serving the country’s capital, achieved contrasting results in terms of passenger growth in 2019. Vnukovo (VKO), Russia’s third biggest airport, has retained its status as the growth-rate leader, having demonstrated a 12% year-on-year improvement. In absolute figures, for the first time in its history, the airport recorded more than 24 million passengers. For the winter season of 2019/2020 the airport handled 28 airlines, including its anchor carrier Utair. Contributing factors for Vnukovo’s positive developments were the aggressive fleet expansion of Aeroflot Group airline Pobeda, which allowed Russia’s only low-cost carrier to expand its route network and increase the number of its flights and traffic; and the high growth rate of Turkish Airlines was also a factor, as was the fact that Rossiya Airlines, another Aeroflot Group carrier, retained its charter operations there, instead of moving them along with its scheduled flights to Sheremetyevo. Sheremetyevo (SVO), Russia’s main gateway, reported a notable 8.9% year-on-year increase in passenger numbers, to 49.9 million in 2019. 19 new services were launched at SVO, including those operated by Brussels Airlines, Vietnam Airlines, Japan Airlines, Turkish Cargo, and Belavia. The significant advancement of Sheremetyevo’s ground infrastructure achieved in 2019 has now prepared a solid base for more growth. For example, launched in September 2019, the long-awaited third runway is poised to increase the airport’s capacity from 65 to 90 take-offs and landings per hour. Also, in November 2019, Russia’s aviation authority Rosaviatsiya issued an approval for the re-opening of Terminal C, which had been undergoing major reconstruction works. The rejuvenated terminal, which is designated for international flights, served its first passengers in January 2020. With more than 127,300 m² of floor area, it has the capacity to handle 20 million passengers per year. By contrast, Domodedovo (DME), Russia’s second-biggest airport, suffered from stagnating passenger traffic for the second consecutive year. In 2018, the airport served 29.4 million passengers, 1.2 million people less than the year before. The 2019 number fell again by 4.1% to 28.25 million. The primary reasons for the privately-operated airport’s stagnation are the long-term delays in its airfield infrastructure development, a responsibility which lies within the remit of the Russian government. This shortfall means that the airport operator is still unable to start using its newly-built Terminal T2 because state aviation body Rosaviatsiya, the nation’s Federal Air Transport Agency, has failed to satisfy the strict deadlines for related apron and runway reconstruction projects. The first wing of the new T2, when completely ready for service, will be able to provide the airport with an additional floor area in excess of 157,000 m². In addition, Rosaviatsiya has failed to build a new runway and the existing Runway 2 has been partially decommissioned, its length reduced from 3,800 to 2,370 m, and radio-communications systems dismantled. According to the Accounts Chamber of the Russian Federation, these slippages have reduced the airport’s potential capacity by 35%. Furthermore, the reconstruction of Domodedovo’s Runway 1 has not been completed in full. Alexander Neradko, the head of Rosaviatsya, in an interview at the end of 2019, claimed that financial and organizational problems Copyright © 2020 - Momberger Airport Information - www.mombergerairport.info Page 2 of 12 10 July 2020 No. 1124 DEV have finally been solved and that all construction works will be completed by the end of 2020. Despite DME’s infrastructure hurdles, three Lufthansa Group’s airlines – Lufthansa, Austrian Airlines and Swiss – are to continue to operate their Moscow flights to and from Domodedovo International, at least until 2025. The Group has extended its contract with the airport, after reportedly considering switching its operations to Sheremetyevo. In another move, Air Astana, the flag carrier of Kazakhstan, decided to transfer its flight operations from SVO to DME from the 2019 winter season. The move comes after a recently signed code-share agreement struck with S7 Airlines, which has Domodedovo as its operational base. #1124.1 Moscow-Sheremetyevo, Russia’s largest airport, has revealed two scenarios for the possible development of the on-going air travel market crisis brought about by the global corona virus spread. In an optimistic view, international services will resume in July leading to an eventual recovery of pre-crisis traffic volumes by the end of 2020, according to Alexander Ponomarenko, Chairman of the Board and co-owner of the hub airport. “Our forecast for this year has two scenarios. The first implies that international flights will resume in July and the traffic numbers would then recover gradually by the end of this year. The second scenario, a much graver one, says that a traffic recovery to 2019 levels would take much longer, no less than 12 months until mid-2021 at the earliest,” Ponomarenko has told the Russian edition of Forbes. He also warns that, should the second scenario prevail, Sheremetyevo (SVO) may have to lay off some staff, but he promises that the airport will try to keep its employees by applying other cost-cutting measures first. The airport is watching the situation closely and will correct its projections in accordance with the turn of events in Europe. From 1 April 2020, SVO transferred all of its international departures and arrivals to Terminal F and all domestic flights to Terminal B. Terminals E, C and D have been closed because of the radical decrease in passenger numbers. As of 6 April, the combined passenger traffic through Russia’s 33 largest airports declined by a colossal 89%, according to the country’s International Airport Association data. “The Russian commercial aviation industry has now dropped down almost as low as that of Europe,” the Association summarizes. The passenger business drought in Russia started in March as a result of the global spread of the Covid-19 infection. Accordingly, the Russian government closed the nation’s borders and curtailed all international air services, except for repatriation flights bringing home Russian citizens. #1124.2 Russia's Deputy Transport Minister, Aleksandr Yurchik, was among the guests of honour at the official opening of Moscow-Sheremetyevo's new Terminal C. The first phase of SVO’s "new and improved" Terminal C ensures that it is equipped to handle international flights. The revamped terminal has a total floor area of 127,374 m² and the capacity to handle 20 million passengers per year. It boasts 84 check-in desks and 160 passport control booths, which the airport hopes will ensure the speedy processing of passengers and air crew. A new addition is an indoor pedestrian passageway connecting it to a five-level parking garage with space for 2,500 vehicles. Speaking at the opening ceremony, Yurchik noted: "Sheremetyevo has been a leader of the airport infrastructure development in our country, Europe and all the world in recent years. The airport and it’s base air company Aeroflot, are the flagships of our aviation industry. It’s a very necessary and important symbiosis." According to the Deputy Minister, the airport development is based on a PPP project. Aleksandr Ponomarenko, Chairman of the airport operator's Board of Directors, told guests: "Our own investments into Terminal С amounted to RUB 32 billion (USD 520 million). As a result, the new terminal will increase the airport's capacity to 80 million passengers per year. This is a critical step as we work toward our strategic goal of serving 100 million passengers per year by 2030. Today, Sheremetyevo is the largest airport in Russia and a critical part of the global transportation system. The launch of the new terminal will strengthen our competitive positions within the local and global markets, and our leading Copyright © 2020 - Momberger Airport Information - www.mombergerairport.info Page 3 of 12 10 July 2020 No. 1124 DEV position among Europe's major airports in terms of flight punctuality and passenger service quality proves that the business strategy we have chosen is a sound one." Terminal C was built as part of the Long-term Airport Development Programme and forms part of SVO’s Northern Terminal Complex (Terminals B, C). The design of Terminal C naturally combines the best tradition of Russian art and modern technologies. Its interior features a Russian constructivist design. An impressive 49.9 million passengers (+8.9%) passed through Moscow Sheremetyevo in 2019 to cement its status as Russia's busiest gateway. International passengers accounted for 26.6 million of the total, a year-on-year rise of 7.8%, while domestic passenger numbers soared by 10.3% to 23.3 million. The most popular international destinations served from SVO in 2019 were Antalya, Yerevan, Paris, Beijing, and Tel Aviv, while St Petersburg, Simferopol, Sochi, Yekaterinburg, and Krasnodar were the most popular domestic routes. #1124.3 Sheremetyevo International has been named Airport of the Year in the annual Wings of Russia National Aviation Awards programme for the second year in a row.