Of this sum, around US$2.6bn will be earmarked for the needs of the domestic ground handling industry. According to an official spokesperson of the Russian Ministry of Transport, more than half of these funds are expected to be allocated from the federal budget, with the remaining 40% coming from private investors.
The allocation of funds for the development of Russian ground handling is perceived as an acute need, since the current level of ground handling services provided by local operators remains low. In addition, the lowly condition of the country's airport infrastructure and the current fleet of GSE throughout the country's domestic airports speak volumes about the required injection of funds.
"Poor ground handling infrastructure in the majority of Russian airports currently remains a major problem and a major constraint for rapid development of the domestic aviation industry." So says Irina Frolova, Head of Ground Handling Services at Transaero.
"This is reflected by the lack of ground handling technologies and equipment at Russian airports," she adds. "That means that we cannot simply operate in such airports and their base regions. Due to this, airlines, whose fleets are equipped with modern aircraft, cannot perform flights to many parts of Russia."
In addition to the improvements in airport infrastructure and GSE, the government will also tighten control of the national ground handling industry. This is to take place through the introduction of mandatory certification for all ground handling activities throughout Russia.
Currently the Russian ground handling industry suffers from a lack of legal regulation. As a result, there is a need to design new separate aviation standards for the national ground handling industry and to introduce mandatory certification of ground handling services around the country, and for all its providers. Training programmes are deemed desirable and there is a need to synchronise the requirements of foreign companies and airlines, Russian aviation authorities and local legislation. Moreover, domestic regulations will have to be harmonised with international standards in terms of ground handling services. These comprehensive measures are seen as a reaction to current poor level of competition within the handling sector, which is plague by monopolies.
It is further felt that progress in this direction will also raise the level of safety within the sector.
As part of the government's plans to improve the situation, Russia will revise its current system of ground handling service provision and will shift from regulatory approval to a bidding process. Currently, ground service providers in Russia must prove their ability to provide quality ground handling services and to ensure the safety of those services. This is contrary to the European and the US practice, where the provision of ground handling services takes place on the basis of competition.
However, one fly in the ointment is that of the continuing poor relations between Russia and the West, which may adversely affect the proposals. Russia is very dependent on outside sources for its GSE and any sanctions on the import of goods could have far-reaching repercussions within its aviation sector.
