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Today's paper. Last Updated: 05/25/2012

Swissair, Sabena Switch to Domodedovo

Swissair and Sabena announced Wednesday that they are leaving Sheremetyevo Airport for Domodedovo, becoming the first major Western air carriers to abandon what was long Moscow's only international airport.

Aviation analysts called the decision a blow to Sheremetyevo and Aeroflot, the airport's main tenant, that could pave the way for other foreign airlines to follow suit.

Swiss airline Swissair and Sabena of Belgium, which are both part of SwissAir Group, will complete the move to Domodedovo on Oct. 28, said Marcus Albrecht, SwissAir Group's general manager in Russia.

The switch will slash the airlines' airport bills by 25 percent.

"We are very happy and excited to make this change," Albrecht said at a news conference. "It's something that two airlines have been thinking about and evaluating for better part of the year and I am convinced that our passengers will appreciate better and speedier travel experience in the future."

The airlines will offer two daily flights to Zurich, one daily flight to Brussels and six flights a week to Geneva.

Calling the move "a serious and dangerous adventure," Albrecht said that the main advantage at Domodedovo will be a lack of the congestion that has plagued Sheremetyevo, which will allow Swissair and Sabena to pick time slots that are more convenient for passengers, he said.

Domodedovo's general director Sergei Rudakov said the airport, which completed a top-to-bottom renovation of its terminal last year, will have to bring its service up to new heights to meet the requirements of its new tenants.

"We have an understanding about the level of service at both Swissair and Sabena and it will help us," Rudakov said.

Albrecht said the airlines have been promised a separate VIP lounge for its passengers.

Swissair and Sabena fly 31 weekly flights to Moscow and St. Petersburg, ferrying about 200,000 passengers to and from Moscow last year. They carried 40,000 to St. Petersburg.

In comparison, British Airways estimates it flew 250,000 travelers to Moscow and St. Petersburg in 2000.

Domodedovo, which is operated by the East Line Group, has seen a growing interest from domestic and international airlines in recent months.

Air Malta broke the ice in March when it transferred south to the airport. Russian air carrier Transaero moved amid much pomp a month later.

Lufthansa is also considering making the move, as are Qualiflyer alliance members such as LOT Polish Airlines and Turkish Airlines, according to Domodedovo officials.

Sabena and Swissair belong to the alliance.

However, Domodedovo has promised SwissAir Group that it will not try to recruit any foreign airlines for the time being.

"We have received a commitment from East Line Group and Domodedovo in that before other airlines move in there is a plan to enlarge the infrastructure," Albrecht said.

Domodedovo, which is located 35 kilometers southeast from downtown Moscow, had planned to start expanding its international gateway last month.

The project, which will expand the number of gates to nine and double the current capacity of 1,100 passengers an hour, is expected to kick off within weeks and will be completed next summer.

The airport is also building a railroad terminal and parking garage under one roof for completion in October.

Express trains are already running hourly from Paveletsky Station for a 42-minute trip to Domodedovo. No other airport in Moscow has a rail service.

Sixty airlines make scheduled flights to Domodedovo and the airport is also used by 100 charter companies.

Albrecht said that Sabena and Swissair move will cost $400,000 to $500,000, an expense that will be split with the airport.

Aviation analysts said the switch could mark a turning point for Domodedovo.

"Swissair and Sabena's move to Domodedovo will be the first real test of that airport's ability to deliver international class service to foreign passengers," said Paul Duffy, a Moscow-based independent aviation analyst. "If it does this successfully, then it will cause other carriers to reconsider their use of Sheremetyevo."

"This is an important move that may yet convince other carriers to uproot, possibly leading to a loss of market share for both Aeroflot — in transit passenger traffic — and Sheremetyevo Airport in terms of high-margin international operations," the United Financial Group brokerage wrote in a research note.

Sheremetyevo Airport has been working for years to accommodate growing traffic by expanding with a third terminal.

Although ground was broken on what was planned to be a three-year project in February, the airport and Aeroflot have yet to agree on their respective roles.

The airport also plans to build a railroad to the city.

Aeroflot announced Wednesday that a deal has been reached on constructing a $57 million link in 2002-03. The track will be laid to Leningradsky Station.

Sheremetyevo now services 82 airlines with scheduled flights — 42 international, 34 domestic and six from states of the former Soviet Union — and is planning to add two foreign carriers including Singapore Airlines next year.

SwissAir Group spokeswoman Maria Makarova said the company negotiated for six months with Sheremetyevo about improving services and getting better time slots.

The company informed the Sheremetyevo about its decision to change airports on Tuesday.

"We did not blackmail Sheremetyevo, saying that if you don't do this or that we will leave for Domodedovo," Makarova said.

"But we did not get a positive response on anything that we asked for. … We waited until the last moment," she said.

At Domodedovo, the flights to Geneva will move from 5:35 p.m. to 4:05 p.m. and flights to Zurich will be pushed forward from 4:00 p.m. to 5:30 p.m.

Sheremetyevo gave a cold reception to SwissAir's announcement Wednesday.

"Sheremetyevo respects the freedom of choice in picking a partner in international flights," the airport said in a statement.

"Sheremetyevo hopes that despite the declarations [made Wednesday], we will continue to cooperate with the airlines."

Sheremetyevo spokesman Vladislav Lebedev spoke more frankly.

"We hope the airlines will reconsider their decision by Oct. 28 and stay with Sheremetyevo," he said.




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