Support The Moscow Times!

Aeroflot May Lose Royalties

Aeroflot may be partly stripped of its prized overflight royalties under a proposal submitted to the government by the Federal Anti-Monopoly Service, Interfax reported Tuesday.

Citing the deputy head of the anti-monopoly watchdog, Anatoly Golomolzin, the agency said the goal of the proposal was to redistribute the royalties, which analysts value at about $300 million per year, among various Russian airlines.

"Anti-monopoly officials do not have the authority to take away the royalties completely. Our aim is to ensure a level playing field for Russian aviation firms," Golomolzin told Interfax. He added that his agency's proposal had been submitted in a letter to Prime Minister Vladimir Putin's government.

Former Aeroflot CEO Valery Okulov, who had run the airline for more than a decade, had been critical of the government's newly created carrier, Russian Airlines, which he called a "pyramid scheme."

Analysts have said part of the motivation for creating Russian Airlines was for the state to get closer control of the royalties.

Russian Airlines is a unit of Russian Technologies, an industrial conglomerate wholly owned by the state and run by Putin's close ally Sergei Chemezov.

It was created in November last year, mainly by combining about a dozen airlines bankrupted by the financial crisis.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more