Eurasian Integration Yearbook 2012

Advanced Economic Cooperationin Sectors and Industries• safety measures need to be improved, particularly with regard to thefollowing:– geometric dimensions of aerodrome components and daytimemarking;– light signalling equipment and power supply;– strength of pavement;– emergency and rescue equipment;– radio facilities;– meteorological equipment (CIS, 2007).The development of new jumbo jets including the Airbus 380 and the Boeing-747-800 require strengthened airport pavements. There are an insufficientnumber of EurAsEC aerodromes that can receive such planes or serve as backupaerordromes for their transit flights. The underdeveloped logistics networkundermines the competitiveness of EurAsEC airports in terms of cargo deliveries,because the time saved by air transportation is outweighted by the time of grounddelivery between the airport and the freight owner. At present, only Moscow’sSheremetyevo and Domodedovo airports are integrated, to a greater or lesserextent, with Eurasian logistics chains. The development of logistics centres atairports would attract additional trade flows between EurAsEC member statesand foreign countries.Currently, AirBridgeCargo is the only Russian registered company offeringscheduled commercial cargo transportation between Europe and Asia, whichcan stand comparison in terms of quality and quantity of services with otherworld leaders in the airfreight sector. AirBridgeCargo’s fleet comprises andcontinues to be expanded with various versions of the Boeing-747 freightaircrafts. Its parent company, Volga Dnepr, and some other carriers, operatenon-scheduled flights with ramp aircraft such as the AN-124.EurAsEC’s scheduled airfreight market has to be classified as undeveloped, oremerging, given the scale of operations in other regions. In 2010, for example,Cathay Pacific, one of Hong Kong’s carriers, transported twice as many cargoesas all EurAsEC’s air companies put together (ATW, 2010; Airline Business,2010). The competitiveness of EurAsEC cargo carriers is undermined by the lackof modern, cost-efficient cargo aircraft such as the IL-96-400 or Boeing-747MD-11, that meet international standards for ground noise, engine emissionsand navigation precision. In EurAsEC in particular, there is a lack of aerodromesthat can service such planes, which also hampers the development of cargotraffic. This continues to make air transportation in EurAsEC unattractive forpotential shippers, and hence the vicious circle ensues where the lack ofcompetition undermines the development of the air cargo business. So, the180 EDB Eurasian Integration Yearbook 2012