OJSC "Aeroflot — Russian Airlines" (Russian: ОАО «Аэрофлот — Российские авиалинии») (MICEX:AFLT RTS:AFLT), or Aeroflot (Russian: Аэрофлот) as the airline is commonly known, is the de facto national airline of Russia.[3] The largest airline in Russia, based on passengers carried per year, Aeroflot is one of the oldest airlines in the world, tracing its history back to 1923. Based at Sheremetyevo International Airport near Moscow, the airline operates domestic and international passenger services to 96 cities in 49 countries.
During the Soviet era, Aeroflot was the Soviet national airline and the largest airline in the world.[4] Since the dissolution of the USSR, Aeroflot has been transformed from a state-owned bureaucracy into a semi-privatised airline which ranks amongst the most profitable in the world.[5]
Aeroflot has embarked on a fleet modernisation program, extensive route restructuring, and an image overhaul, in order to bring the airline up to world standards. The airline joined SkyTeam in April 2006.[5]
In 1921, shortly after the end of civil war in European Russia, the new government established the Chief Administration of the Civil Air Fleet to oversee new air transport projects. One of its first acts was to help found Deutsch-Russische Luftverkehrs (Deruluft), a German-Russian joint venture to provide air transport from Russia to the West. Domestic air service began around the same time, when Dobrolyot (Russian: Добролёт) was established on 9 February 1923. It started operations on 15 July 1923 between Moscow and Nizhni Novgorod. On 25 February 1932 all civil aviation activities were consolidated under the name of Grazhdanskiy Vozdushnyy Flot (Civil Air Fleet), known simply as Aeroflot. International flights started in 1937; before that date they had been carried out by Deruluft.
By the end of the 1930s Aeroflot had become the world's largest airline, employing more than 400,000 people and operating around 4,000 aircraft.[citation needed] During the Soviet era Aeroflot was synonymous with Russian civil aviation.[citation needed] It became the first airline in the world to operate sustained regular jet services on 15 September 1956 with the Tupolev Tu-104.[6]
In January 1971 the Aeroflot Central Administration of International Air Traffic was established within the framework of IATA, and became the industry's sole enterprise authorised to operate international flights. Abroad, the airline was known as Aeroflot Soviet Airlines. In 1976 Aeroflot carried its 100 millionth passenger. Its flights were mainly concentrated around the Soviet Union, but the airline also had an international network covering five continents: North and South America, Europe, Africa and Asia. The network included countries such as the United States, Canada, United Kingdom, Spain, Cuba, Mexico, and People's Republic of China. Since the 1970s some transatlantic flights were flown using Shannon Airport in Ireland as an intermediate stop, as it was the westernmost non-NATO airport in Europe.
Aeroflot also performed myriad other functions, including aeromedical, crop-dusting, heavy lifting for the Soviet Space Agency (see Soviet Space Programme), offshore oil platform support, exploration for natural resources, support for construction projects, transport of military troops and supplies (as an adjunct to the Soviet Air Force), atmospheric research, and remote area patrol. It operated hundreds of helicopters and cargo aircraft in addition to civil airliners. It also operated the Soviet equivalent of a presidential aircraft and other VIP transports of government and communist party officials. Aeroflot joined IATA in 1989.
Aeroflot service to and from the United States was interrupted from September 15, 1983 until August 2, 1990 following an executive order by U.S. President Ronald Reagan revoking Aeroflot's license to operate flights into and out of the United States. (See Korean Air Flight 007 for more information). At the start of the 1990s Aeroflot reorganised again giving more autonomy to territorial divisions.
In 1992 it was divided into more than 300 regional airlines. International routes were operated separately as Aeroflot - Russian International Airlines (ARIA).[6] Some airline companies which were created from the old Aeroflot are now flag carriers of the newly independent countries — for example, Uzbekistan Airlines, and Lithuanian Airlines. Smaller regional airlines which emerged out of the old Aeroflot — sometimes just one-plane operations — were sometimes referred to as Babyflots.
In 1994 Aeroflot was registered as a joint stock company and the government sold off 49% of its stake to Aeroflot employees. During the 1990s, Aeroflot was primarily focused on international flights from Moscow. However, by the end of the decade Aeroflot started an expansion in the domestic market. In 2000 the company name was changed to Aeroflot — Russian Airlines to reflect the change in the company strategy.[citation needed]
Aeroflot has been working towards redefining itself as a safe and reliable airline, hiring British consultants for rebranding at the beginning of the 2000s.[7] A new livery and uniforms for flight attendants were designed and a promotional campaign launched in 2003.
Plans were afoot to replace the old Soviet-era hammer and sickle logo, which some people in the West treat as a reminder of Soviet communism. However, as it was for over 70 years the most recognizable symbol of the company, the logo was, in the end, retained.[7]
Aeroflot has also upgraded its fleet of western-built aircraft. It has a total of 24 A320/A319 jet planes for short-haul flights in Europe and 11 Boeing 767 planes for long-haul routes. The total number of planes is 93. It carried 5.9 million passengers in 2003.
In the spring of 2004 the airline started an aggressive expansion on the domestic market aiming to gain 30% share by 2010 (as of 2006 it holds approximately 9%). The first task was to outperform one of its major rivals S7 Airlines, the leader in the Russian domestic market. On July 29, 2004 the company adopted a new corporate slogan: "Sincerely Yours. Aeroflot".
On April 14, 2006 Aeroflot became the first air carrier in the former Soviet Union to join a global alliance, SkyTeam. The airline will also get its own terminal at Sheremetyevo International Airport known as Sheremetyevo terminal 3 which will be finished in 2009.
The company has announced its plan to increase cargo operations. It registered the "Aeroflot-Cargo" trademark in 2004.[citation needed]
The airline is owned (as of March 2007) by the Russian Government via Rosimushchestvo (51.17%), National Reserve Corporation (27%) and employees and others (19%) and has 14,900 employees.[6]