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Dilemmas for Aeroflot

With a wealth of technical expertise and production facilities, there were aspirations in the former Soviet aeronautical community for it to be at the forefront of the country's export drive. The reality has been very different, with little export success for the indigenous industry and the nat...

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Published in:Aircraft Economics 2003-05, p.1
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description With a wealth of technical expertise and production facilities, there were aspirations in the former Soviet aeronautical community for it to be at the forefront of the country's export drive. The reality has been very different, with little export success for the indigenous industry and the national airlines looking to acquire western-built equipment to improve economic performance. As the country's major airline, Aeroflot, which operates more than 100 aircraft, has a strategic role in Russia's economy, not least because it employs over 15,000 people. With more than 100 destinations in 54 countries the airline provides vital links for the economy, but primarily it is required to make a profit. However, the carrier, in which the state still has a 51% controlling share, is constrained by political considerations. It is, for example, not permitted to increase the number of western-built aircraft beyond the 27 it operates unless it is prepared to pay import duties on additional aircraft.
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subjects Airlines
Aviation
Business conditions
Corporate profiles
Profits
Public private partnerships
Rentals
title Dilemmas for Aeroflot
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