17-Sep-2009 12:05 PM

Aeroflot to cut 2,000 jobs, more to come if traffic decline continues

Aeroflot Financial Manager and Merger Specialist, Vitaly Savelyev, stated the carrier will cut 2,000 jobs in the next six months as passenger numbers continue to decline adding that a further 4,000 positions may be cut if the traffic decline worsens (Reuters, 16-Sep-2009). Passenger numbers in Russia fell 16.5% year-on-year for the seven months ended 31-Jul-2009. The carrier announced in May-2009 it was cutting its 2009 budget by USD859 million to USD2.25 billion.

Mr Savelyev also stated that opportunities for mergers and acquisitions are now focused within Russia and the former Soviet Union, adding the current global recession will drive many of Russia’s 170 airlines out of business. Mr Savelyev expects to see  five to six larger airlines emerge in Russia over the medium term.

Aeroflot: "For Aeroflot I don't see prospects in Europe. No one wants Aeroflot there. The European legislation will not allow us there," Vitaly Savelyev, Financial Manager and Merger Specialist. Source: Reuters, 16-Sep-2009.

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