Agreement signed with Armenian Airlines

Published: 3/17/2000

Aeroflot has signed another alliance agreement, this time with Armenian Airlines. Both companies intend to develop the Moscow transit hub, in order to provide Armenian Airlines with more transit flights from Moscow to destinations in Russia, the CIS and abroad. Aeroflot plans a similar development of the Yerevan hub. The two airlines will jointly operate routes; in particular, Moscow-Yerevan-Moscow and Moscow-Los Angeles-Yerevan. Under separate agreements, they will also cooperate on issues such as foreign representation, technical maintenance and service and air traffic documentation. This latest alliance is in keeping with Aeroflot's strategy of pursuing such partnerships. Armenian Airlines is, however, in urgent need of funding, with an estimated $15-$20m required over the next couple of years. Last year, it suffered a 34% drop in passenger volume and losses of $1.6m. The airline has a fleet of 18 aircraft, including a leased A-310-200 and 1200 employees. There is also a question mark over whether or not the government intends to privatise the company.

Article ID: 1705