Vnukovo Airlines, Russia's biggest domestic carrier, may be on course for a merger with Sibir - one of the country's few thriving airlines - following the appointment of Sibir chief executive Viacheslav Filiov as general director of the larger carrier.

Filiov succeeds Vladimir Rubstov, who was appointed to the post only in mid-May, and has been charged with developing a practical business plan to implement a merger in a way that will encourage growth. The plan, which will include fleet restructuring, should be completed this year.

Russia's Federal Aviation Service, which holds a golden share in Vnukovo and a 26% stake in Sibir, regards mergers as one way of easing the country's airline crisis, and has approved the appointment. Filiov remains general director of Sibir, which reported 10% growth in turnover last year. Vnukovo, which operates 58 aircraft, carried 1.7 million passengers in 1998 and Sibir, which has a 23-strong fleet, transported 600,000 people.

Sibir is the largest user of Vnukovo Airport, Moscow's main domestic terminal. Vnukovo has quit the gateway, claiming charges are too high.

Source: Flight International