VZCZCXRO2683
RR RUEHLN RUEHPOD RUEHVK RUEHYG
DE RUEHMO #3573 3451128
ZNR UUUUU ZZH
R 101128Z DEC 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 1073
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MOSCOW 003573 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/RUS AND EEB/TRA (JOHN BYERLY, MATT FINSTON) 
COMMERCE FOR MAC (MATT EDWARDS, JAY THOMPSON, JACK BROUGHER) 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD EINV ECON RS
SUBJECT: UNITED TO FLY DIRECT FROM WASHINGTON TO MOSCOW BY 
END OF MARCH 2009 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR 
DISTRIBUTION OUTSIDE USG CHANNELS OR FOR POSTING ON THE 
INTERNET. 
 
¶1. (SBU) On December 1, Oracio Marquez, United Airlines' 
Manager for International Regulatory Affairs, confirmed to 
Embassy Moscow's FAA Attache that United would start direct, 
non-stop flights as of March 29, 2009 between Dulles 
International Airport (IAD) and Moscow's Domodedovo 
International Airport (DME).  United had originally planned 
to start flights in October 2008 but requested and received a 
six-month extension from the U.S. Department of 
Transportation.  Marquez said United submitted the necessary 
paperwork to Russia's transportation and aviation regulatory 
authorities in November so that flights could begin in March. 
 He said United plans to fly the Boeing 767-300 aircraft on 
the IAD-DME route.  United's on-line booking system already 
has the new flights listed (Flights 964 and 965) and shows 
that seats are beginning to fill up for flights in April and 
May 2009, with round trip economy-class tickets starting at 
$918. 
 
¶2.  (SBU) United,s decision to start service at this time is 
a bit of a surprise.  Growth rates on international routes to 
and from Russia have been declining in the second half of 
¶2008.  They are still predicted to grow by about 14-16 
percent for 2008, according to Russian aviation experts, but 
this is down from 21 percent in 2007 and is in spite of a 
very strong performance in the first half of the year. 
Russian experts expect growth rates to decline further in 
2009, though still remain in positive territory.  Currently, 
Aeroflot provides the only direct flight between the two 
cities, but does not fly daily.  According to Marquez, the 
limited competition, predicted continued growth in demand, 
significant volume of government travelers between the two 
capitals, and lower jet fuel prices made the direct DC-Moscow 
flight attractive for United at this time. 
 
¶3. (SBU) United still faces some challenges, however, as it 
moves forward with starting operations.  Marquez said United 
currently has no employees on the ground in Moscow and will 
only have two employees at Domodedovo airport even after 
flights start.  Most services will be provided by outside 
contractors and service providers.  The company is 
negotiating with the East Line Group (an airline services 
company and the manager of DME) to provide ground services, 
but the companies have not yet finalized the contract terms. 
RUBIN