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Russian Air Carriers at Risk of Mass Bankruptcy
29.07.2008
Russian Air Carriers at Risk of Mass Bankruptcy

The fuel prices have risen over 40% within the last six months. Aviation experts express an opinion that Russia will face mass bankruptcy of air carriers, if the fuel prices rise 20%. At the moment the fuel expenses make about 40% of Aeroflot’s operational budget, 37.7% of Transaero`s, and 35% of Sky Express discounter.
      
      During October-February, when the passenger traffic reduces, the air carriers may have a lacking income to cover the fuel expenses.
      
      Air carriers with the passenger traffic of less than a million passengers a year appear the weakest in this situation. Only 11 airlines out of 150 Russian air carriers cannot be referred to this category.
      
      Source - klerk.ru

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