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Aeroflot CEO warns of bankruptcy risks for Russian air carriers

According to Vitaly Savelyev, as of today around 100 air carriers in Russia have an Air Operator Certificate, of which around 40 provide services to about 99% of the whole passenger flow

Vitaly Saveliev Simon Dawson/Bloomberg via Getty Images

Vitaly Saveliev

© Simon Dawson/Bloomberg via Getty Images

MOSCOW, December 29. /TASS/. Chief Executive Officer of Russia’s flagship air carrier Aeroflot Vitaly Savelyev does not rule out that some Russian carriers could go bankrupt.

"This is a possible option. I think (some) aviation companies are on the edge. Meaning the aviation business has always been low-margin, low-yielding. Many analysts say that several aviation companies are one step away from facing a bankruptcy problem. There are even various estimations in the press regarding how many aviation companies can face bankruptcy simultaneously," he said in an interview aired by the Rossiya-24 TV news channel.

According to Savelyev, as of today around 100 air carriers in Russia have an Air Operator Certificate, of which around 40 provide services to about 99% of the whole passenger flow.

Aeroflot CEO considers it possible for aviation companies to avoid bankruptcies by shifting away from the dumping policy. "The market demonstrates that it is possible to operate on the market, though one should not engage in predatory pricing. We expect the market to grow by 20-21%," he added.

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