Igor Katalevskiy, Air Transport Systems Management - Управление авиатранспортными комплексами
Release Date: 2009-03-05
Date: 22.01.2009Initially Air Transport Systems Management was connected with fuel-supply complexes (TZK) in airports. Today the Company is additionally involved in management, construction, not long ago two companies for freight transport, cargo handling and mail delivery have been set up. What is the cause of the diversification of activity and how important are these new lines of business for the Company?
My activities in fuel supply of civil aviation began in 1995 when I was invited to AlfaEco, one of the first private oil companies in Russia. Besides I have aviation education. At that particular time I was new at the job of fuel supply to airports and airlines throughout the whole country. Later I was with Yukos: we were the first implementing the oil company work method in airport - as an end link of vertical integration: “all the way from the oil well to the fuel hydrant in aircraft”.
In 2005 I took a decision on own private business start-up. I started with wholesale aviation fuel supply. Almost at the same time I got invitation from my present business partners to go into the business development of the dominant company in the Group – ZAO Sibir Avia Service. The company provides the airport of Krasnoyarsk with aviation fuel. That was the first airport to which I paid my attention with regard to development and consolidation of trans-Siberian and cross-polar cargo routes. It is the geographical position of Krasnoyarsk - in mid-course between Europe and Asia and almost the same between Europe and America – which is the master competitive advantage of this city.
Ideas on business diversification started up there and then and as soon as such opportunity emerged we entered upon the process. At about the same time AirBridgeCargo took the decision on flight operations from Asia to Europe through Krasnoyarsk. One of the principal tasks to be fulfilled by the airport was development of 2 business lines: fuel supply and availability of cargo handling facilities. That exactly became the focus of our attention, and by now more than 500 million rubles have been invested in these activities and new members of the Group came into business: investment company (investments in construction) and cargo handling company. Last year consolidated corporate management became a necessity and there was taken a decision on flotation of ZAO Air Transport Systems Management.
During our recent meeting with Alexey Chertenkov, General Director of Airport Tolmachevo in Novosibirsk, there was mentioned that airfreight companies Volga-Dnepr and Lufthansa had started operations in Krasnoyarsk. In this respect Mr. Chertenkov wished you every success. What else but only success will Krasnoyarsk airport need to become a regional hub?
I believe that the competition in particular between Krasnoyarsk and Novosibirsk pushes more aggressive business behavior in comparison with other airports. Unfortunately it is true that due to the bad occasions of the previous year some slowdown took place, which affected the organizational affairs rather than the facility infrastructure development: airport in Krasnoyarsk faced severe financial problems due to the bankruptcy of AirUnion and withdrawal from it. Organization structure has some disadvantages either. For this reason we help the Region Administration in airport organization structure optimization. The Region holds 51% shares in the Airport and does its level best to turn it into international passenger/freight airport, but it does not possess such personnel resources and professionals we do.
Our advantage is our geographical locations (I mean both Krasnoyarsk and Novosibirsk) - virtually the same for flights from Asia to Europe; as to cross-polar routes over the territory of Russia - Krasnoyarsk is located even closer to them. Besides, Krasnoyarsk Airport is one of two preferred bidders for creation of Special Economic Zone (SEZ). I think that development of Special Economic Zone will give rise to development of the Airport as a cargo hub. We work closely with representatives of the Federal Agency for Management of Special Economic Zones (RUS SEZ) in feasibility study of SEZ project and intend to be one of tenant builders of facilities to be built up there.
These initiatives allowed us to succeed in obtaining the Ministry of Transport approval of the multimodal complex construction project with a budget of 20 billion rubles. The funds are to be spent for upgrading and extension of the runway in Cheremshanka Airport, construction of a new apron and connection of two runways with a taxiway for the Airport integration. As private investors we intend to cooperate with Krasnoyarsk Region in construction of a new passenger terminal and development of the existing cargo facilities. The newly constructed air cargo facility allows handling 65 thousand tons of cargo per year and thus making a provision for further modal progressive development.
At the recent conference of the Civil Aviation Association “Airport”, representatives of the Federal Government insisted that airport facilities are owned by the Federal Government but not by airports. That creates certain difficulties for developers. Being a developer and an investor how do you deal with the ownership matters?
We consider different approaches. Begin with Public Private Partnership. Second - the State does not intend to reserve all airport facilities. Even the runway and apron which will be built in Cheremshanka Airport in pursuant to the Federal Target Program will be on the books of Krasnoyarsk region.
We are in tight cooperation with the Region Administration and propose the most up-to-date business organization approaches: construction tenders, outsource existing property management functions. Looking a bit ahead I would like to say that we are preparing a proposal to take into trust management all existing facilities as an integrated hub project with duration of our responsibility for the period of not less than 5 years with guarantee of gaining any fixed economic and financial performances.
You have mentioned benefits of geographical position of Airport between Asia, Europe and America. One of the key conditions of multimodal complex successful operation is attraction of Asian cargo airlines. What measures should be taken to attract Asian airlines, in particular ones from China?
In the context of recent events in the world and as consequence in aviation there occurs some decline in demand for both consumer goods and cargo operations. But in the meantime crisis affords an opportunity for a shoot forward and further development. Having created a base and concentrated on the determined direction of further development together we would be able to achieve positive results. Being representatives of cargo carriers we met sea and railroad transport competition, therefore only synergism will help us to find the proper level in future.
In the context of our feeder airline development, we give serious consideration to the cooperation with Chinese forwarders as Skynet Cargo being a cargo airline is aimed not at long hauls (as AirBridgeCargo and Lufthansa), but at short- and medium-distance flights. There is a good pre-condition for establishing direct contacts between small/medium towns of China and big cities/ megapolises of Europe and Russia, especially as related to implementation of major investment projects logistics. All-round and serious cooperation in different branches of economy may give rise to both Chinese and Russian industries. In Russia these are major mineral deposits development and power plants construction which require huge investments and well-organized transport services. It is well-known that the geographical position of Russia makes service support of all objectives to the east and north from the Urals possible mainly by air. High long-haul flight frequency of Lufthansa Cargo (up to 45 flights per week) and in parallel perspective of short feeder intra-Russia flights give a chance to attract the companies dealing with express cargo and mail delivery.
Your career began in aviation, then you worked in the oil industry and nowadays your core business is added with construction and investments. What is from your point of view the biggest challenge for future implementation?
I never made radical changes in my activity and never dropped out of aviation. 12-year-long employment in fuel market required from me attentive and careful liaison with airlines. There was also necessary good knowledge of financial performance, of route network development strategy, for this reason I always kept the track of events in aviation. At the same time creation and development of fueling systems I was dealing with required full understanding of airport operations
Since I was a student my heart’s desire was to build up the best airport. I think that today I am closer to my goal than ever before. I possess knowledge in many spheres connected with the airport operation. We formed a strong team of professionals skilled in airport operation and we believe that we have all the scope to turn Krasnoyarsk into unique international cargo hub.
Translation provided by Air Transport Systems Management
| Company: | Air Transport Systems Management - Управление авиатранспортными комплексами |
| Position: | Chairman of the Board |
| Country: | Russian Federation |