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Today's paper. Last Updated: 05/31/2012

London Travel Agency Says Aeroflot Is Corrupt

A popular London discount travel agency has charged Aeroflot with unscrupulous business practices and sued the airline for ?1 million ($1.52 million). Sam Travel Centre Ltd., which specializes in cheap tickets of developing nations' airlines, charges that Aeroflot abruptly cancelled the agency's agreement in 1992 and diverted business to a competitor after receiving a kickback payment. "We were the top Aeroflot agents producing ?5 million for Aeroflot and suddenly they just switched us off and said, 'Sorry, we don't want to deal with you any more,'" said John Kalia, the agency's general manager. "The reason for that is basically corruption." He did not elaborate on the corruption charge. The agency is filing the case two years later because it has concluded further negotiation with Aeroflot is futile, Kalia said from London. Anatoly Brilon, Aeroflot Russian International Airways' deputy general director specializing in legal affairs, said the company is unconcerned about the case. "They are neither our partners nor our passengers, so I don't want to waste any time on this," he said. "At one time there were relations with them, but thank God, they do not exist anymore." Aeroflot did file a response to the legal action Thursday, however, three weeks after Sam Travel filed charges. London is especially important for Aeroflot because it is a major market for budget travelers looking for cheap international tickets to Asia and Africa. Aeroflot competes in this market by offering far lower prices than they do for the same tickets in Moscow. Brilon said Aeroflot is sued from time to time, but is able to settle most of its disputes out of court.




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