Agreement signed between Aeroflot and regional administration creating new airline

Published: 6/1/1999

As expected Aeroflot following its strategy of creating airport hubs in Russian regions, has signed an agreement with the administration of the Nizhny Novgorod region creating a joint venture called Aeroflot Nizhny Novgorod Airlines. Its direct partner will be Nizhny Novgorod International Airport which is owned by the regional government. It is not clear however, whether Aeroflot intends to takeover the assets of the bankrupt Nizhny Novgorod Airlines currently in administration or use its own assets. Aeroflot has announced plans to open routes from the Nizhny hub to Siberia,CIS cities, and to resorts in summer. It will probably begin direct routes from Nizhny to international destinations in the near future to compete with Lufthansa which already offers direct international connections and fulfill its intention of capturing passengers at point of embarkation to international destinations.

Article ID: 555