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Monitoring of Roadway Movement or Roadway Activity

Government-approved airport services access rules, enacted on May 30, failed to incorporate proposals from both airports and airlines. Airports sought a list of defined services and reasons to deny them, while airlines like 'Aeroflot' proposed increased pricing transparency and welcoming more...

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In the recently enacted airport service access rules, sanctioned by the government on May 30,...
In the recently enacted airport service access rules, sanctioned by the government on May 30, neither airports nor airlines managed to have their suggestions incorporated. Airports aimed to establish a defined list of services and criteria for denying airlines access. On the other hand, airlines such as 'Aeroflot' advocated for enhanced transparency in pricing and inclusion of more service providers at airports. The global airport and airline sector appears to be deadlocked on pricing matters, according to experts. However, they emphasize that the Russian market is characterized by poor competition, demanding additional regulatory measures to rectify the situation.

Monitoring of Roadway Movement or Roadway Activity

In the recent non-discriminatory access rules to airport services, passed on May 30th, neither airports nor airlines got their proposals accepted. Airports were hoping to set up a list of specific services with reasons for refusing to provide them to carriers, while airlines were aiming to enhance pricing transparency and bring in more operators to airports. Experts claim that airports and airlines globally haven't reached a compromise on prices. The Russian market, however, has weak competition, thus requiring further regulation.

Major Russian airports, Aeroflot, and other aviation industry players voiced their disapproval over the updated non-discriminatory access rules to airport services. The document, prepared by the Federal Antimonopoly Service (FAS), establishes a process for main airport operators to consider applications for takeoff and landing slots, prioritizing certain flights decided by the Russian government and those serving the country's defense and security. It also determines the order of queue creation for access to services and infrastructure for aviation fuel supply. Information on tariffs, airport capacity, and technical capabilities must be disclosed. The rules will come into effect on September 1st.

Before the project was approved, Moscow's major airports and the International Airports Association (IAA) requested revisions, but their suggestions were ignored. According to an Association of Air Transport Operators (AETO) interlocutor, the document merely fixes existing provisions and does not solve issues related to providing carriers with different discounts, imposing additional services, or inflated tariffs, which aren't disclosed. FAS regulates four main services (takeoff-landing, airport terminal provision, aviation safety, passenger service, and aircraft refueling). AETO considers non-regulated services expensive and has repeatedly requested regulatory intervention.

In February, Aeroflot proposed expanding general formulations, specifying the responsibilities of operators, approving a methodology for calculating service costs, and ensuring multiple operators, including independents, are present in major airports. However, sources in the airport industry believe ensuring such a large number of operators or handlers in the regions is practically impossible due to the scarcity of independent handlers on the market.

Airports also suggested major revisions, such as creating legal grounds for refusing to sign service contracts with airlines and focusing regulation solely on FAS-controlled services. Leonid Sergeev, head of Pulkovo, expressed concerns about overregulation in an interview with "Kommersant" in January 2025, stating that everyone wants to regulate them but doesn't guarantee traffic for the next 10-15 years.

In Moscow's airport hubs, comments were delayed. Sources at MAU harbored hopes that FAS would specify the list of services and refusal order for airlines in a separate regulatory act in the future.

The standoff between airports and airlines is characteristic of the global aviation industry and lacks a universally satisfactory solution to the price competition debate, according to Alexander Lanetsky, general director of Friendly Avia Support.

Lanetsky points out that European carriers hold a more favorable position than Russian ones. Europe has numerous airports close together, unlike Russia, where, excluding Moscow, each regional airport is almost a monopoly. He believes the argument of it being impossible to organize competing independent operators in airports is disingenuous and merely an excuse. Regulation, in his opinion, is always preferable to no rules.

Broad issues and challenges in the Russian aviation sector might influence or be related to these rules. These include security concerns due to frequent drone activity, operational efficiency, regulatory environment, international travel restrictions, and technological and infrastructure challenges. However, these concerns are speculative without direct statements from airlines or airports.

  1. In light of the ongoing disagreement, Aeroflot, along with other aviation industry players and airport operators in Russia, have expressed their dissatisfaction with the updated non-discriminatory access rules, specifically regarding the lack of specified services and transparent refusal orders for airlines.
  2. The financial sector and the aerospace industry in Russia are closely monitoring the standoff between major airports and airlines, as the resolution of price competition concerns could have significant implications for the future financial health and growth of airlines, airports, and related businesses within the aviation industry.

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