Alexander Velovich/MOSCOW

AEROFLOT AND Transaero have signed an agreement which will result in the two Russian carriers co-operating in operations, ticketing and fleet planning. The two airlines, both based at Moscow's Sheremetyevo Airport, are responsible for 27% of Russia's passenger market.

The memorandum calls for coordinating policy on air routes, flight safety, ticketing, personnel training, fleet renewal and engine inventories. An additional agreement on the latter was also signed, but details have not been disclosed.

Aeroflot general director Yevgeny Shaposhnikov has been critical in the past of the poor quality of new Russian engines. He is also committed to the acquisition of Western airliners, to keep Aeroflot competitive.

Transaero has also announced plans recently to buy new aircraft. The new alliance could help the two carriers undertake their ambitious fleet-modernisation plans.

Aeroflot deputy director Alexander Krasnenker says that negotiations on providing investment loans for fleet modernisation may start with foreign banks, as their Russian counterparts had put up "unbearable conditions" for issuing loans. Aeroflot is also actively seeking strategic partners for internal CIS markets, where it is weak. The first attempt was made a year ago by signing an agreement with Vnukovo Airlines. Now, Shaposhnikov says that the deal "-has come to a standstill", but he hopes that a new agreement may be signed under new conditions in the future.

Transaero recently signed a protocol of intent with American Airlines to begin joint transatlantic operations from April 1997. The Russian carrier will use its UN flight code on internal American flights from Chicago.

Source: Flight International