Moscow, June 27th 2007 – After a thorough review of all the elements of the privatization process for Alitalia, Aeroflot has decided with regret to withdraw and is not in the position to present a binding offer under the set terms and conditions. Aeroflot believes that acquiring Alitalia under the current conditions would not be the right decision for it to take.
The following elements have supported Aeroflot’s decision to withdraw:
- Aeroflot and its advisors have not had access to critical information with respect to the commercial and operational aspects of Alitalia’s business to confidently formulate a well supported business proposal to successfully restructure Alitalia.
- The conditions and requirements outlined for the privatization process would significantly limit the ability of Aeroflot to implement what Aeroflot believes to be the necessary measures to re-launch Alitalia.
Aeroflot express thanks to its partner UniCredit bank for joint efforts in preparation of the bid proposals as well as consultants and banks that helped to prepare its initial business plan for Alitalia.
Aeroflot is committed to expand its operations in Europe by increasing it operational activities as well as acquiring strategic assets.
JSC “Aeroflot – Russian Airlines” (AFLT) is unquestionable leader of the civil aviation of Russia, and actually is the national air carrier. Being the largest airline in the country, it carries more than 7 million passengers a year, and together with its affiliated airlines – about 9 million combined that makes 23% of the total air passengers traffic of Russia. Having a fleet of 81 aircraft Aeroflot operates its own flights to 93 points of destination in 47 countries (302 a day overall). It controls 51% of the Russian international scheduled service market and about 12% of domestic air traffic. In 2006 it had net profit of $258,1 mln.
Aeroflot is one of the oldest airlines and one of the most popular commercial brands in the World. It was founded in 1923, is based in Moscow in the International Airport Sheremetyevo. In 2006 Aeroflot became the first Russian airline to join the global airline alliance SkyTeam. SkyTeam most extensive hub networks gives access to 728 points of destination in 149 countries that provides to Aeroflot’s passengers limitless connectivity. Aeroflot’s customers enjoy benefits under frequent flyer programs of all SkyTeam partners. Visit website www.skyteam.com for further information on the benefits and opportunities resulting from the SkyTeam partnership.
Aeroflot is the only certified operator of international aviation operational safety standard IOSA in Russia.
At website www.aeroflot.ru you can buy tickets for Aeroflot’s flights using on-line payments, e-ticketing arrangements and to find additional information about Aeroflot.
Kate Forrester, Ogilvy PR
Beatrice Flammini, Ogilvy PR Italy
Phone: +32-2-545 67 82