The sky’s the limit for Aeroflot-Cargo
Newly independent as a subsidiary of the Aerofl ot group, Aeroflot -Cargo is moving rapidly to tap demand with new services and a modernization programme for its freighter fleet.
October 1, 2007
By Donald Urquhart
Spun-off as a separate entity within the Aerofl ot group two years ago and fl ying solo for one year, the move to create a separate freight subsidiary – Aerofl ot-Cargo – has proved to be a signifi cant step in the right direction as the cargo carrier looks set for rapid network growth and fl eet expansion on the back of solid cargo volumegrowth.
Increased competition in the Russian air cargo market from the increasingly liberalized environment and the desire to create a more “transparent” cargo business was the key impetus behind the spin-off, according to Alexey G. Prikhodchenko, CFO of Aerofl ot-Cargo.
The Aerofl ot unit is responsible for both dedicated freighter operations as well as belly-hold cargo on the group’s passenger side, which operates a fl eetof 86 passenger aircraft to 93 destinations.
With a 15 per cent growth in cargo volumes over the period November 2006 to July 2007 – representing a 23 per cent growth in revenue – the newly created entity is now looking at ramping up effi ciencies, expanding its network and modernising its fl eet whichcould include B-777 freighters.
Carrying over 150,000 tonnes a year, Aerofl ot-Cargo has recorded a 15.4 per cent growth in cargo volumes over the period November 2006 to July 2007. As expected much of this growth has been from the Far East region, where the carrier has seen volumes jump 38 per cent in the same eight-month period with the associated revenue contributionrising an impressive 80 per cent.