The General Director of «Aeroflot» does not exclude new bankruptcies of airlines in Russia

© RIA Novosti / Ramil to Setdiscoverable in photobackgrounds Aeroflot. Archival photoThe General Director of «Aeroflot» does not exclude new bankruptcies of airlines in Russia© RIA Novosti / Ramil to Setdiscoverable the image Bank

The General Director of «Aeroflot» Vitaly Saveliev does not exclude new bankruptcies of airlines in the Russia.

According to him, the air transport market in Russia today is saturated, there is an excess of available capacity. «Today the market, in our view, from 10% to 12% of underperforming tanks», — he told reporters on the sidelines of the WEF.

He also noted that many airlines get a loss. «Some carriers to provide load dumping. Because the prices at which they sell tickets, and obviously not pay for the increased fuel, the devaluation of the ruble that half of payments in currency or in roubles but linked to the currency. So to sell at that price in General (it — ed.) says that companies operate at a loss. We know how it ends,» he told reporters on the sidelines of the WEF.

The Ministry of transport of the Russian Federation predicts the total increase in the cost of aviation fuel by the end of 2018 compared to the end of 2017 by 30%. As mentioned in the reporting «Aeroflot» according to IFRS, the group’s expenditure on aviation fuel for six months this year increased by 38.5% and amounted to 77,88 billion. The band received for the first half of a loss of 5.2 billion rubles against a profit of 2.9 billion rubles for the same period last year.

Savelyev added that the airline looked into the fuel risks. «The hedging we have studied, we have reported to the Board of Directors. This is a very difficult question, especially in Russia, where we are constantly exposed to risks of sanctions, yet somehow,» continued the CEO.

According to him, the analysis showed that in many countries hedging «does not apply or applies in a very limited way». «We analyzed the last four years, if we were to hadjirousos, we would have lost a lot of money. Much more than if we had not hadjirousos. One year you can win, such as this, and before that three years to pay,» — said a top Manager.

Fourth Eastern economic forum will be held at the site of the far Eastern Federal University campus on the Russian island on September 11-13. MIA «Russia today» is the General information partner of the WEF.

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