Aeroflot will reportedly receive a short-term loan of EUR331 million from Sberbank, with the aim of the loan to enable the carrier to repurchase 25.8% of company shares from National Reserve Bank (Aviaport, 19-Mar-2010). The carrier reportedly plans to place RUB12 billion (EUR302 million) exchange bonds to pay back the loan.
Aeroflot to receive short-term loan of EUR331 million from Sberbank: reports
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Mongolia aviation: liberalisation, end of MIAT protection needed to drive growth at new airport
Mongolia’s stagnant aviation market is at an important juncture as the country prepares to open a new airport at the capital Ulaanbaatar in May-2018. In order to drive growth and ensure the new airport does not turn into a white elephant, the government needs to adopt a new more liberal aviation policy and stop protecting its flag carrier.
Mongolia’s international market has not grown in the past four years due, in part, to protective policies. In the latest examples of protectionism, Mongolia has refused to allow Kazakhstan’s Air Astana to launch flights and has not approved more capacity for Turkish Airways that is needed for new nonstop flights from Istanbul.
The Mongolian market has huge potential, and increased tourism would have an overall economic benefit far greater than the negative impact on the government owned MIAT Mongolian Airlines from increased competition. With the new airport about to open, it is even more crucial for Mongolia to liberalise – not only by opening up to all interested foreign airlines, but also by ending MIAT’s monopoly on ground handling services and making sure the airport’s charges are low enough to support new flights.
Aeroflot Group's transformation: driven by strategic refocus, guided by the hand of Russian State
In recent years, the Aeroflot Group has undergone a significant transformation. From 2009 to 2016 the group's passenger numbers increased fourfold, its load factor improved by 11.3ppts and its revenue grew almost five times.
During this time the group's structure has moved from one of non integrated subsidiary airlines to a clearly focused multi brand approach targeting different market segments. The Aeroflot Group has also refocused its fleet strategy, reducing the number of aircraft types from 18 in 2011 to seven in 2016.
Some measure of the success of Aeroflot's transformation, beyond the obvious growth in scale, can be seen from its improved financial results. In 2016 it reported record profits, in spite of a second successive year of a shrinking economy in Russia. These results were helped by lower fuel prices and by currency movements, but Aeroflot Group's operating margin of 12.8% was better than those of other major European legacy airline groups.
Aeroflot's achievements also owe much to the government directed consolidation of the Russian market in recent years. Indeed, the Russian government's influence has long been a guiding force in Aeroflot's development.