More losses if demand falls further
Aeroflot is to axe around 2,000 jobs over the next half a year as it continues to struggle from falling demand, its ceo said.
Airline chief Vitaly Savelyev said a further 4,000 Aeroflot staff could also find themselves out of a job if passenger numbers continue to decline.
Mr Savelyev told a regional investment conference he believed the trend "is still going towards a decline."
But the Aeroflot chief said he expected the airline to turn a profit this year despite falling demand in the first half of 2009.
Mr Savelyev said the aviation crisis had paved the way for new merger and acquisition opportunities, Reuters reported.
But he added that most opportunities were within the former Soviet Union, playing down European carriers as possible acquisitions.
"For Aeroflot I don't see prospects in Europe," Mr Savelyev said.
"No one wants Aeroflot there. The European legislation will not allow us there."
Mr Savelyev predicted that the aviation crisis would wipe out many of Russia's 170 airlines, and pressed for competition between 5-6 strong airlines.
Aeroflot may speed up deliveries of new Airbus and Boeing aircraft in a bid to compete with European full service competitors.
Mr Savelyev said Aeroflot's main competitors in Europe were British Airways, Air France and Lufthansa, but also Emirates and Singapore Airlines.
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