Russia to deregulate foreign air market

Russia's Transport Ministry suggests setting up an inter-agency commission, which will choose local air carriers for foreign routes, in an attempt to deregulate the international flights market, Kommersant business daily reported on Monday. The ministry decided to liberalize the market after conflict of interests between the country's largest airlines, Aeroflot and Transaero, over Italy last year. Aeroflot is the state-chosen air carrier for the bulk of European routes, including Italy, and agrees on charter flights of its competitors from Russia unwillingly. This February, the ministry made the first step in liberalizing the market by appointing Transaero as the second state-chosen airline to Italy. The list of criteria to choose the airline stipulates that the air carrier should have no tax debts, high level of regular flights, an IOSA international security certificate and should not be affiliated with previously chosen airlines for the route. The criteria will be measured using a points system. Infomost consulting agency head Boris Rybak told the paper that Aeroflot still had chances to maintain its monopolistic position in this sector of the market. "Aeroflot could make its daughter companies to be chosen for new routes with a certain administrative leverage and nothing will change," Rybak said, adding that participants of the commission should work out the criteria instead of the Transport Ministry.