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Aeroflot back in operating profit in 1H. Transaero acquisition to take its market share close to 50%


The Aeroflot Group turned around an operating loss in 1H2014 into a profit in 1H2015. The depreciation of the RUB served to boost both revenue and operating costs, with a net negative impact, but Aeroflot managed to grow its RASK more rapidly than its CASK.

The Ukraine crisis and tense international relations continue to weigh on demand for travel to/from Russia. But demand for domestic flights is growing strongly.

Moreover, Aeroflot is taking advantage of capacity reductions by cautious international rivals and struggling domestic competitors to increase its leading share of the Russian air transport market. The group's market share now looks set to jump to embrace almost a half of all passengers to/from/within Russia once it completes the acquisition of second ranked Transaero.

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Mozio CEO Update

Mozio founder and CEO David Litwak described how Mozio is 'basically a GDS for local transportation', providing airlines and online travel agencies with access to ground transportation options in all their geographies and a way to sell this easily. He said that to work with the travel industry, a company “can’t be so disruptive that you are trying to blow up the existing systems”, noting the need instead to be “disruptive within the existing systems”. He said there is way to provide new ground transportation systems and technology within the existing booking systems and corporate booking tools, while also bringing new aggregation and app technology into the market. He said there are lessons from Uber in how to bring new concepts to the market place, but described Uber as having a “net positive overall”.

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JetGo CEO Update

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