January-June, 2014 saw growth in passenger traffic and business aviation flights at the Basel Aero-run airports of the Krasnodar Territory (Sochi, Anapa, Krasnodar and Gelendzhik) only on intra-Russian flights - by 57% and 20% respectively, while international routes saw a decline by 2% in passenger traffic and by 9% in return flights in contrast to the same period of 2013.
All these airports serviced nearly 17,000 passengers on business flights, which is 59% above the parameters of the same period last year. The company says it is expecting a far greater increase in traffic in the business segment with the Hydro Air Show in Gelendzhik and the Formula-1 stage and investment forum in Sochi.
“In June and July Nice was in the greatest demand, accounting for 11% and 9% of all serviced flights respectively,” says the general director of Domodedovo Business Aviation Centre, Andrei Stepanyuk.
But the number of business flights keeps going down. Germany’s consultancy WINGX Advance in its June survey of business aviation activity noted a considerable decline in traffic between Europe and the CIS countries - 25% less in annual terms. The traffic between Russia and the European Union was down by 12% in contrast to January-July 2013.
According to Diamond Aero Group (a brokerage on the business aviation market) Russia’s business aviation market is estimated at 6,000-6,500 flights.
With the average cost of one flight standing at 50,000 euros, the annual revenues of airlines operating on the Russian segment of business aviation, may reach about 425 million euros, and net profit (profitability margin being rather low) 17 million euros, the expert said.
According to Dmitry Petrochenko, of the specialized periodical Bizavnews, international flights account for about 75% of Russian business aviation traffic.