Business Standard

Russia's flag carrier Aeroflot wants to quit SkyTeam: report

Image

AFP Moscow
Russia's largest airline Aeroflot may opt out of the global SkyTeam alliance and join a different one due to disagreements with its code-sharing partners, the Kommersant daily reported today citing industry sources.

Aeroflot is reportedly unhappy with being tied into expensive prices set with its SkyTeam alliance partner Delta for flights to the United States, one source close to company management told the newspaper.

Competitors are offering fares considerably lower on flights with stopovers.

Aeroflot is also unhappy with the frequent flyer miles policies of SkyTeam, which it sees as "unprofitable", the source told the newspaper.

Aeroflot was a civil aviation monopoly in the Soviet era and is still majority-owned by the state. It is based in Moscow's Sheremetyevo airport and carried 17.6 million passengers in 2012.
 

It joined SkyTeam in 2006.

The airline could quit the alliance, paying a fine of USD 20 million, and continue expanding its network through direct partnerships with other airlines, the newspaper quoted sources as saying. It is also considering joining with Star Alliance, partnering up with airlines such as Lufthansa and United Airlines.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 28 2013 | 5:55 PM IST

Explore News