Published: 4/24/1998

Nikolai Akimov, the head of schedules planning, at Aeroflot-Russian International Airlines (ARIA), has announced the introduction of super-low experimental tariffs for those who cannot afford the modern, high air fares. Initially, the airline has selected two markets - Germany and the USA. At first, the round trip prices will be set at $260 for USA and $150 for Germany. The social layer of potential users of these tariffs covers pensioners, Russian citizens having relatives in foreign countries, students and "others who want to do a trip but do not care much for dates". Under this system, flight dates will be determined not by the passenger but by the operator. An applicant for such a trip is meant to come to a ticket window and ask whether he can make a trip to, say, the USA, with a duration of, for instance, ten days. The cashier puts this request into the computer, which answers "Yes" or "No". If "Yes", the applicant is asked to pay the full fare, which will not be refundable at any rate. The computer then chooses dates and issues the tickets. Dates are chosen by special software, "the system of random purchase", within a twelve month period. Akimov says, if the experiment works, the company will add more foreign countries which have relatively large numbers of Russian emigrants. "Surely, we will never offer this for London or the Maldives", he added. At the same time, Akimov said that Aeroflot is by not putting undue emphasis on the 'poor people' sector. After the arrival of the first of the two 777s leased from International Lease Finance Corporation, ARIA will be the only company operating this newest type with its relatively luxurious interior on the Moscow-New York route. In comparison with the 767 flying now, the tariffs for business class passengers will be increased from $2200 to $2500-2700. The 777 obtained a local airworthiness certificate from the CIS Air Register on 9 April. On this announcement, Boeing said it would deliver the first 777 to Russia in June. The GE90 engine that powers Aeroflot 777 was certified in Russia in January. The two 777s will be the main focus for gaining competitive advantage for Aeroflot in competition with Finnair. Akimov says that the bulk of Russian passengers fly with Finnair to Finland and then proceed to the USA. By arranging more non-stop flights on modern capacious airliners, Aeroflot hopes to draw some passengers from Finnair. Akimov says that the recently-introduced St.Petersburg-New-York non-stop service on the 767 has already drawn many transit passengers from Finnair. (VK) (AL498.3)

Article ID: 143