Aeroflot today announces that it has voluntarily relinquished its rights to operate some routes transferred to it from JSC Transaero Airlines, which last year exited the air transport market. The decision reflects the commitment of Russia’s leading airline group to market principles, and primarily the principle of fair competition.
Aeroflot’s Management Board made the decision to cede the Group’s rights to some routes in order to avoid the Group occupying a dominant position on the Russian market. Based on the Group’s own development strategy and its current and potential status on the international market, the Group is declining to operate the following routes:
Moscow-New York (seven flights per week)
Moscow-Palma de Mallorca (three flights per week)
Moscow-Ho Chi Minh City (four flights per week)
JSC Rossiya Airlines:
Moscow-Hong Kong (three flights per week)
Moscow-Kokshetau (two flights per week)
Moscow-Madrid (seven flights per week)
Moscow-Miami (seven flights per week)
Moscow-Singapore (seven flights per week)
Moscow-Toronto (five flights per week)
Moscow-Frankfurt (fourteen flights per week)
Moscow-Houston (five flights per week)
St Petersburg-London-St Petersburg (seven flights per week)
Moscow-Uralsk (two flights per week)
The Group has informed the Ministry of Transport of its decision April 26, 2016.
An Interagency Commission on licensing carriers to operate international routes last autumn granted Aeroflot temporary rights to operate 56 of Transaero’s 156 international routes. The routes were transferred as compensation for costs incurred by Aeroflot in assuming operational management to carry almost 2 million passengers holding Transaero tickets when Transaero was unable to meet its obligations to customers. In addition to costs of RUB 17 billion, Aeroflot has also created more than 6,000 jobs for Transaero staff who would otherwise have been left without employment.
Aeroflot has previously voluntarily given up its right to operate on a number of routes. The Company firmly supports the liberalization of Russia’s transport market, and believes that efficient operation of these routes will allow other Russian airlines to develop, which will be beneficial for the sector as a whole.
Aeroflot has no desire to become a monopolist on the Russian market, and plans to maintain its market share (including foreign airlines) below 50%.
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