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Russia – Holland 2009

On 19 June 2009 a bi-lingual, colour supplement to The Moscow Times will be published. The “Russia-Holland” supplement is an annual business publication, devoted to the partnership between Russian and Dutch companies.

This year the magazine is timed to coincide with the most glorious event in the cultural co-operation between the two countries for the last decade – the opening of Hermitage Amsterdam. The unique exhibition centre will be opened on the 19 June by Her Majesty Queen Beatrix of the Netherlands and the President of the Russian Federation, Dmitry Medvedev.



Monday, July 06, 2009 Updated at 06 July 2009 22:18 Moscow Time.

The Moscow Times » Issue 2126 » Transport

Aeroflot In Talks For Virgin Airline

23 January 2001By Lyuba Pronina / The Moscow TimesAeroflot is in preliminary negotiations to buy out budget airline Virgin Express Ireland in a deal that would give Russia's No. 1 airline its own low-cost carrier and access to the EU's open skies policy.

"We need something that will operate like a tram, without bookings and ticket sales," said Boris Krivchenko, the head of Aeroflot's London office. "When a passenger learns about the flight he wants, he pays the money, gets a boarding pass and flies."

Top Aeroflot executives flew to London last week to hold negotiations with cash-strapped Virgin Express Ireland about the takeover, Krivchenko said by telephone Monday.

"This is the only European airline to start negotiations that is sizeable, has a name, and is up for sale," he said. "British Airways, Lufthansa, Air France all have low-cost operations and Aeroflot has its own plans for [such an operation]."

Virgin Express Ireland was launched in Shannon, Ireland, two years ago but has yet to break even amid a fierce battle with other European airlines for the skies.

The airline flew to five destinations in two European countries until Jan. 15, when three of the routes were cut. It has a fleet of nine leased Boeing 737s.

Virgin Express Ireland's financial woes led its owners to warn their 250-strong staff in December that airline was being put up for sale.

The airline's parent company Virgin Express is 59 percent owned by financier Richard Branson.

"This is the question of whether the airline finds a strategic investor or closes down," Virgin Express spokesman Yves Panneels said by telephone from Brussels.

Panneels declined to say whether talks were being held with Aeroflot, saying that offers were being considered from a number of parties.

Virgin Express and Aeroflot declined to put a price tag on the budget air carrier. Aviation insiders estimated the airline would not sell for more than $10 million.

Krivchenko said Aeroflot was interested in acquiring either a stake or — if approved by federal authorities — all of Virgin Express Ireland.

State-owned Aeroflot has been flying high after it launched a McKinsey-designed restructuring of its operations last year. The airline is expected to announce in March that it turned a long-sought profit of $30 million in 2000.

Virgin Express Ireland comes with an established brand name and almost unlimited access to all European Union destinations, Krivchenko said.

The EU's open skies agreement gives EU-licensed airlines the right to fly to any European destination, provided that parking slots are available at airports and that the route generates sufficient traffic.

"This is the right we want to get and one that our government cannot give us," Krivchenko said.

"We could create a hub anywhere, Paris, London or Berlin," he said. "We need an ally for that [access to the open skies], but so far all we have are competitors."

Aeroflot currently flies to London 14 times a week.

Krivchenko said it was too early to gauge talks over Virgin Express Ireland, but if a deal cannot be worked out Aeroflot will look to acquiring another discount airline.

A merger would be the first time a Russian airline has purchased a Western airline.

Russian airlines, however, have been far from idle in the past year and the sector has rapidly consolidated. Aeroflot teamed up with a number of regional carriers, and No. 3 airline Sibir said last week that it was in talks to merge with top five Vnukovo Airlines.

Aeroflot has also set its sights on getting a bigger chunk of the Western market. Last year it announced that negotiations were under way for 2003 entry into the SkyTeam alliance with Delta Airlines, Air France, Korean Airlines and Aero Mexico.