1-Jul-2011 2:39 PM

Aeroflot to absorb six domestic carriers by end of 2011

Aeroflot CEO Vitaly Saveliev stated Aeroflot plans to absorb six domestic carriers by the end of 2011 and may launch new standalone low-cost and charter units (Dow Jones/Marketwatch, 30-Jun-2011). Aeroflot took operational control of the six airlines from state-owned Rostechnologies in 2010 with the formal transfer to boost Aeroflot's domestic market share from 25% to around 40%. It will add around 1 million domestic passengers p/a. The carrier hopes to finalise the process in Jul-2011. Aeroflot does not plan to rebrand the airlines, which include KavMinVody, Vladivostok Avia, Orenburg, Saratov and Sakhalin, with its name although the carriers could also be used as the basis for a stand-alone low-cost operation and a charter business aimed at leisure destinations.

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