Support The Moscow Times!

Aeroflot Plans for Capital Expenditures of $156M in 2013

Aeroflot will spend 5 billion rubles ($156 million) on capital expenditures for itself and its subsidiaries in 2013.

The figure represents a 69 percent jump on expected spending this year. In December 2011, the board of directors approved 3.17 billion rubles of capital investment for 2012.

The investments are likely to go toward new aircraft to help the airline meet ambitious growth targets, said Andrei Rozhkov, an analyst at Metropol.

Aeroflot opened 20 new routes in 2012, including such destinations as Guangzhou, China; Stuttgart, Germany; and Krakow, Poland. The state-owned airline plans to carry 21 million passengers next year, a 19 percent increase over this year's number.

The airline carried 13.3 million passengers in the first 9 months of 2012, compared to 14 million passengers in all of 2011.

Air traffic in Russia has been growing rapidly as the economy recovers from the 2008 global financial crisis and wealth spreads to the regions.

Aeroflot said in a press release Friday that it is also planning to spend an additional 644 million rubles on improving services, especially the quality of its in-flight meals.

Other spending could go toward developing subsidiaries including Rossia, Don Avia and Oren Air and toward the launch of a much-discussed national budget carrier.

To expand access to air travel, the government is pushing for the creation of a budget airline that sells tickets at prices up to two-thirds cheaper than what regular airlines charge.

Aeroflot has said it needs several changes to existing laws — including the right to sell more tickets than seats, offer non-refundable tickets, and cease serving free in-flight food — as pre-conditions for setting up a budget carrier.

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