Roman Abramovich made headlines last year with rumors he had purchased the world's largest commercial airliner, a $300 million Airbus A380 super jumbo, for use as a private jet. While most of us can only dream of cruising the skies in a flying palace with football field-length wings, there are indications that private aviation is becoming a reality for an increasing number of Russians.
The growing trend for smaller, cheaper aircraft in Russia was confirmed last month when Etirc Aviation announced that it is developing the first ever foreign aircraft production plant in Russia in the city of Ulyanovsk. Production of Eclipse 500 micro-jets is set to begin in 2009 when the plant will supply aircraft across Eurasia. Alexander Livshits, managing director of Etirc, explained the choice of location to The Moscow News:
"This is not some kind of outsourced second grade manufacture of an outdated vehicle for a third country. It is the most modern mass manufacturing factory for jets ever built. Other European states were considered such as Turkey and the Czech Republic, but only Russia fitted all the requirements. Certain factors were crucial like the long history of aviation, strong education in both aircraft construction & training of relevant personnel and the high pace of growth of the economy. We also had support from the local government."
The price tag of the Eclipse 500 is a fraction of the cost of many traditional business jets. At just $1.5 million this aircraft is within reach of not just Russia's billionaire elite, but also those who are simply very, very wealthy. And it seems that Russia's new generation of multi-millionaires are snapping them up:
"I have never seen so much enthusiasm about this machine as I have seen in Russia; perhaps only in the United States. Both Russia and the U.S. are countries are with long histories in aeronautics and both have been ruling this industry for the last century," Livshits comments.
Other manufacturers of "low-cost" executive jets have noticed a similar enthusiasm for their products in Russia. Cessna Aircraft Company, currently the world's leading manufacturer of light and mid-sized business jets by volume, sold 20 aircraft in CIS countries last year ranging in price from $8 million to $22 million.
"Russia is an increasingly important market to Cessna and I think it will become very valuable in the future," Tom Perry, regional sales manager for Cessna, tells The Moscow News.
"We expect to see smaller aeroplanes becoming increasingly popular; they are lower priced and better value. The aircraft we manufacture are aimed less at the oligarch few and more at wealthy businessmen who need something that is both practical and cost effective," Perry continues.
But according to Forbes Russia, buying a private jet, even a very small one, only becomes cost effective if you travel more than four times a month. Less frequent fliers in Russia are increasingly chartering aircraft as a less expensive way to experience travel on a private jet.
"This is a more suitable option for customers who do not need a private jet everyday, it provides flexibility," comments Amelie Lorenz, a spokeswoman for Lufthansa Private Jet, which operates point-to-point flights between destinations in Europe and the Russian Federation.
For those who want to taste the high life and aren't so fussed about where and when they travel costs of hiring a private jet can be brought down even further by utilizing an empty legs scheme. About half of all charter flights currently fly with no passengers onboard because planes need to be flown back to their base after dropping off passengers. Many air charter companies now offer customers the possibility of buying these "empty legs" for a reduced fare. The Russian group Planeta Aviation, for example offers up to 30 percent discount on empty legs between Moscow and other European and Russian cities.
But despite new innovations in the sector, private aviation in Russia is still being held up by a number of hurdles. The Russian Business Aviation Association complains that Russia is still lacking in suitable landing sites for clients of business aviation. High taxes on Russian-registered aircraft have also led many owners to register their planes outside Russia in countries like Germany and even the U.S.; surely another sign that not everyone with a jet in Russia has billions in the bank.
By Rebeccah Billing
