newstodate.aero
APR 22, 2003 (newstodate): High-level talks between EU and Russia on abolishing Russian practice of "commercial agreements" to charge airlines for use of Russian airspace may reach a solution "in the coming months" or so, according to an industry source.
-There is absolutely nothing "commercial" in these agreements that are forced on airlines and accrue to payments of 200-250 million euro per year to their Russian counterparts, the source says.
According to the airline industry, this corresponds to a revenue base of 4-5 billion euro per year.
Negotiations have so far produced a joint understanding that the practice must change, but no final or formal results have yet been attained.
The EU negotiators have proposed a compensation package to balance the effects of an abrupt shortfall of Russian income from traditional practices. The package may comprise financial support to a modernization of Russia's ATC which would, in the longer run, produce a larger traffic through Russian airspace and ensuing increased revenue from agreed en-route ATC charges according to normal industrial practice.
-From EU's side it remains clear and unequivocal that overflight is free and should not be charged through any kind of forced "commercial agreements", says the source.
-There is absolutely nothing "commercial" in these agreements that are forced on airlines and accrue to payments of 200-250 million euro per year to their Russian counterparts, the source says.
According to the airline industry, this corresponds to a revenue base of 4-5 billion euro per year.
Negotiations have so far produced a joint understanding that the practice must change, but no final or formal results have yet been attained.
The EU negotiators have proposed a compensation package to balance the effects of an abrupt shortfall of Russian income from traditional practices. The package may comprise financial support to a modernization of Russia's ATC which would, in the longer run, produce a larger traffic through Russian airspace and ensuing increased revenue from agreed en-route ATC charges according to normal industrial practice.
-From EU's side it remains clear and unequivocal that overflight is free and should not be charged through any kind of forced "commercial agreements", says the source.