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Russia’s Aeroflot Group extends all international permits, loses Moscow-Paris route

Russia’s Aeroflot Group extends all international permits, loses Moscow-Paris route

According to the order of Russia’s Federal Air Transport Agency, almost 30 Aeroflot Group‘s international flight permits have been extended.

The Interdepartmental Commission under Russia’s Transport Ministry has extended all permits for the flights that were previously made by Transaero. The only exception is the permit for Moscow-Paris flight, which was made by Rossiya airline (part of Aeroflot Group). It was not extended but was given to the S7 airline.

The relevant document has been published on the agency’s website.

In 2015, Aeroflot received permits for some of Transaero’s international routes as a compensation for its losses related to transportation of passengers of the bankrupt company.

Since then, permits have been automatically renewed. But in August, the commission put them to the vote. However, only S7 managed to submit an application for participation in the competition. The Pobeda low cost airline asked to postpone the vote, UTair appealed to the Federal Antimonopoly Service with a complaint about violation of antitrust laws. FAS later proposed changing the principle of allocation of permits.

According to the order of the Federal Air Transport Agency, on some destinations Aeroflot and Rossiya airlines have been allowed to do more flights per week. These are Aeroflot flights from Moscow to Tel Aviv, Malaga, Barcelona, Rome, Milan, Beijing, Lyon and Rossiya’s flight from Moscow to Prague.

Transaero suspended flights in autumn of 2015 due to debts of 250 bln rubles ($3.7 bln). The airline’s passengers who were abroad at that time were transported back home by Aeroflot.

Earlier, Aeroflot CEO Vitaly Saveliev suggested extending permits for foreign flights the Group received from Transaero for 5-7 years. During this period, Aeroflot plans to earn 17 bln rubles ($257 mln) from flights on these routes and to cover costs it spent transporting Transaero passengers.

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