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Transaero seeks services to France and Italy following expanded bilateral agreements

Analysis

Transaero is continuing to encroach on Aeroflot's territory with the recent expansion in capacity as part of revised bilateral agreements between the Russian Federation and Western Europe. Traditionally, Aeroflot, as the Russian flag carrier, was the only airline allowed to operate key international routes from Moscow, however, this is beginning to change with expanded bilateral air services agreements with other nations that allow for a second carrier to compete on particular routes. Most recently Russia's Federal Air Transport Agency held negotiations with Italy and France for the liberalisation of air services, which will see each country allowed to have a second carrier compete on key routes.

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