Nine international destinations go

Published: 4/10/2000

Aeroflot has slimmed down its summer schedule launched on 26th March , but has asserted that the reduced schedule will be more profitable than 1999, while not revealig the previous figures. The new schedule, which will offer 450 flights a week a reduction of fifty flights on last year, will generate according to the airline, revenue growth of 5% to 7% over last year. Valery Okulov, the airline"s General Director, has said that the cutting of the flights would allow the airline to increase frequency to more popular destinations such as resort destinations such as Sochi on the Black Sea over the summer period. Given the importance of the summer period to Aeroflot, the cuts will be watched closely, as the cutting of low yielding routes such as Jakarta and Miami, is an integral part of the Aeroflot strategy to revamp its business and focus on profitable routes. The airline has cut the number of countries covered by its network from 79 to 70. Routes to Asia and the Far East where stated to be a priority, with increased flights to Beijing and the possibility of flights to Osaka. Gaps in the route structure created by the elimination of destinations will be covered by the expansion of alliances with other airlines, which Aeroflot has been actively pursuing over the last few months. Recently entering into discussions with British Airways and with the Delta and Air France concerning membership of their alliance. Yuri Mnatsakanov, Aeroflot"s Commercial Director, was reported as saying that the broader alliance involving full membership would take a couple of years, but more limited cooperation could occur earlier. The company said that it would leave domestic fares unchanged as the domestic market was felt to not be capable of sustaining higher prices with soft demand. Prices will be increased in first and business class, but the airline believes that it must enhance the quality of its offering before doing so.

Article ID: 1599