In the past 15 years, Russia has to a large extent broken through the constraints and isolation left over from the time of the Soviet Union to become a major player in today's world economy.

Foreign investments and other ventures in Russia continue to grow. This growth, along with the rise of the Russian millionaire class, has contributed to a fertile and ever growing environment for business aviation. Although there have been occasional ups and downs in Russian general aviation, including a slightly low rate of growth at the beginning of 2006 caused by restrictions imposed on foreign-owned aircraft following the crash of two GA aircraft, the overall trend shows an increase in the number of both Russian-owned and foreign-owned aircraft flying in Russian territory.

With its three airports with official port-of-entry status, all of which accept GA aircraft, Moscow continues to be the centre of corporate aviation activity in Russia. According to the JetExpo international business aviation exhibition, there are approximately 70 business flights per day in Moscow, and the Russian Business Aviation Association claims that the number of these flights to and from Moscow continues to grow, with a 35 percent rise in 2005.

Supplementing Moscow's dominance in Russian GA, airports continue to expand services offered to GA flights and new facilities have recently become available, including a new GA terminal and four dedicated hangars at Vnukovo Airport that were completed in June 2006. General aviation flights in Moscow are generally split between Sheremetyevo and Vnukovo airports, although Domodedovo Airport is also pushing for its share of the market.

In 2006, there continued to be a shift toward Vnukovo due to the reconstruction of one of the runways at Sheremetyevo, which prompted airport officials to restrict charter and business aviation flights to 10 per day.

In recent years, GA crews and passengers have become increasingly dissatisfied with the service level at Sheremetyevo Airport, of which Vnukovo has taken advantage. Representatives at Vnukovo claim that monthly flights have gone from an average of 750 to more than 1,000 in April. For the moment, the airport has likely reached its limit in growth, as demands have already exceeded its capacity. This supply-demand ratio has already led to high prices in Moscow, and service fees may be increased even more in the future.

Even outside of Moscow, expanding business opportunities have led to more flights to locations throughout Russia. The continually growing number of city airports classified as 'International' each year has helped propel this trend, as these facilities do not require the presence of a Russian navigator. However, whereas Moscow shows the promise of providing acceptable services for GA flights, this is usually not the case for flights elsewhere in the country.

Some regional airports may have dedicated GA terminals, but in most locations, GA flights will be handled through the passenger terminal or at the most through a special VIP lounge. In fact, many of these regional airports do not have any English-speaking staff on site to communicate with foreign crews. For this reason, a growing number of GA flights are using the services of outside handling agents, which can facilitate a smooth flight and provide a point of contact in more obscure locations throughout Russia.

Whether in Moscow or in Russia's more rural regions, there are certain aspects of Russian general aviation that negatively impact the industry as a whole. These include airport monopolies and government restrictions. Airport monopolies in particular, which are common throughout the Russian aviation sector, contribute to Russia's high prices, which are generally much higher than those at European airports. These monopolies primarily originated from privatisation after the fall of the Soviet Union, which left aviation related property primarily to airports and major airlines. The trend has been further strengthened by current legislation that makes the opening up of the market very difficult, such as the state ownership of land around airports that cannot be privatised.

So while a growing number of airports may provide services for GA flights, they may be cost prohibitive to some individuals or companies. Similarly, government restrictions and high taxes have also hindered the growth of certain aspects of general aviation in Russia. These include a hefty tax on foreign made aircraft and aircraft parts that has virtually eliminated any significant repair services in Russia and forced many domestic aircraft owners to register their aircraft outside of the country under flags of convenience. While these factors have forced some to reconsider their need to travel to Russia, statistics clearly show that it has not stopped growth altogether.

Like the country as a whole, general aviation in Russia is a lesson in contrasts; from the booming economy and airports of Moscow to the minimal one terminal facilities found in so many other towns and cities, Russia continues to draw both Russian and foreign business aviation clientele. Despite the drawbacks presented in Moscow and elsewhere, business aviation will continue to grow, and new speculation that officials will cut or repeal import duties on foreign aircraft may propel the sector to a whole new level in the years to come.

Teresa Ruiz is an intelligence analyst with Air Security International. She has regional responsibilities for the former Soviet Union.