Russian air fees under pressure

Date: 18/07/02

TRADE Commissioner Pascal Lamy's team of negotiators will next week step up their offensive against the huge fees Russia charges EU airlines to fly over Siberia, en route for the Far East and Australasia.

The issue tops the agenda at talks in Geneva on 23 July on Russia's bid to join the World Trade Organisation (WTO).

Officials are hopeful Moscow will jettison the Siberia charges to pave the way for entry into the 144-member trade body.

'It is pretty high priority for us,' said an EU official.

'We think it [the overflight regime] has no place in a member of the WTO.'

Under the overflight system - a costly remnant of communism - foreign airlines are charged hundreds of thousands of euro for the privilege of flying across the Siberian wilderness.

The fees - some €250 million last year- are used to prop up Russian airline Aeroflot, which critics say would otherwise be facing financial oblivion rather than posting a €42 million profit.

Airlines such as Air France, which agreed a €15-million deal in 1995, accepted the cost because it saved hours on the journey times and fuel costs.

Trade Commissioner Pascal Lamy's team of negotiators are to step up their offensive against the huge fees Russia charges EU airlines to fly over Siberia. The issue will be discussed at talks on Russia's bid to join the World Trade Organisation, Geneva, 23 July 2002. Article is part of a European Voice survey on Aviation.