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Russian rail operator Aeroexpress has decided to stop operations in the cities of Vladivostok and Kazan, saying the federal government has failed to reimburse its losses in the regions.

The firm has also decided to focus on the Moscow region, where it operates on air-rail links between the capital and the three airports of the Moscow Air Transportation Cluster.

According to Aeroexpress chief operating officer Alexey Sorokin, company losses in 2014 amounted to RUR130m ($1.92m) in Vladivostok and approximately RUR62m ($918,293) in Kazan.

It has received only 50% compensation for Kazan project, while no compensation has been paid by Vladivostok’s local government.

"We are currently working through the best way to transfer the entire service establishment to local carriers and not to infringe the interests of passengers."

Sorokin said: "We are currently working through the best way to transfer the entire service establishment to local carriers and not to infringe the interests of passengers.

"Unfortunately, the current macroeconomic situation and the fact that the cost of using the railroad infrastructure by Aeroexpress has risen 100 times as of 5 January 2015 have forced our company to cease activities there."

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By GlobalData

Aeroexpress started operations on the new air-rail link in July 2012, while in May 2013 it began serving a new line that connects the city of Kazan and Kazan International Airport.

The intermodal services in Vladivostok started to support the 2012 APEC summit and to deliver better transportation for its participants. On the other hand, the operation in Kazan began to serve the 2013 Summer Universiade.


Image: Despite ceasing operations in Vladivostok and Kazan, Aeroexpress will now focus its efforts on the Moscow region. Photo: courtesy of OOO Aeroexpress.