Volga-Dnepr Group has announced restructuring measures after reporting a 6% year-on-year decline in freight tonne kilometers (FTKs) across the three cargo carriers that make up the group, Lloyd's Loading List has reported. Volga-Dnepr Airlines, AirBridgeCargo, and Atran collectively saw 2.59 billion FTKs in the first half of 2019, which was 20% below expectations.
“The decrease in the world cargo market, overcapacity, and operational hurdles prevented the profitability of the group’s businesses. The group’s Board of Directors has taken the decision to introduce a restructuring plan, aimed at quality enhancement, cost reduction, and the development of specialist services,” the group said in a statement.
The restructuring will be focussed on “keeping the high level of service quality for customers worldwide”, it added.
However, the group also announced that Sergey Lazarev, chief executive of AirBridgeCargo, would leave, to be replaced by Nikolay Glushnev. Robert van der Weg, the group's vice president for sales and marketing, will also depart.
The UK's CargoLogicAir, a strategic partner of AirBridgeCargo, is also undergoing restructuring. Earlier in August, David Kerr, its chief executive, revealed he would be leaving the company as the CEO role becomes integrated with the COO position.
Volga-Dnepr Airlines currently operates a fleet of nine An-124s and three Il-76TD-90VDs, while AirBridgeCargo Airlines has a fleet of twelve B747-8(F)s, three B747-400(ERF)s, and two B747-400(FSCD)s. Moscow Vnukovo-based Atran operates four B737-400(F) and one B737-800(BCF).
