Petersburg opposes airline privatization

The administration of the airline Pulkovo (AP) and city administration have voiced opposition to privatizing the airline. According to the chairman of KUGI (Committee of Government Property) German Gref, it is not yet clear if there will be an individual

<BR>The administration of the airline Pulkovo (AP) and city administration have voiced opposition to privatizing the airline. According to the chairman of KUGI (Committee of Government Property) German Gref, it is not yet clear if there will be an individual privatization program additionally introduced to the government program in 1998. According to KUGI, from now on the privatization of major enterprises will be done in Moscow and will have the status of "plan-law" as existed under socialism. The government program will be ratified in December, 1997. In the middle of December city administration and Pulkovo management intend to prepare arguments against the privatization. One of the most important arguments against the privatization is that it might interfere with the construction of Pulkovo-3, the new international airport. The cost of the Pulkovo-3 project is almost $300 million. Gref says that in the North-West region only Pulkovo stands strongly on two feet and that the planes of other airlines offer minimal flights. When asked about the possibility of successfully defending the "opposition" in the eyes of the federal government, Gref answered that there is no guarantee, and that in his opinion Moscow will only listen to sound economic arguments.