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. Last Updated: 07/27/2016

Transaero Sees No 2001 Profit Growth

MTTransaero chief Olga Pleshakova
Private carrier Transaero said Friday it would post a net profit of $1 million this year, roughly the same as last year, despite a global aviation slump spurred by the September attacks on the United States.

The airline also said that in December it will resume flying routes to three European cities -- London, Frankfurt and Strasbourg -- that were canceled following the Sept. 11 attacks.

"London, Frankfurt and Strasbourg were not a dominant part of our passenger flows," Transaero's general director, Olga Pleshakova, told reporters. "And for the period [that we did not fly the routes] we did not in the least regret suspending them."

Transaero, which flies to more than 20 cities in Russia, the CIS and abroad, will resume flights to Frankfurt, Germany on Dec. 5, Strasbourg, France on Dec. 7 and London on Dec. 15, she said, adding that the airline has already resumed booking tickets to these cities.

Pleshakova also said that the airline stopped operating a long-range Airbus A-310 that it began leasing late last year because the company it leased it from, which she declined to name, refused to renegotiate terms.

"In a [global] situation when aircraft-leasing payments have dropped dramatically [since Sept. 11], the owner of the craft refused to lower rates," Pleshakova said.

She said that Transaero, which currently leases four Boeing-737-200s and two Boeing-737-700s, would phase out its 737-200s over the next 18 months and replace them with new-generation craft, most likely Boeings.

Transaero is also in talks to lease two long-range airplanes by the start of the summer season. "Most likely these will be Boeing-767s," she said.

To finance the fleet upgrade, Transaero began a short-term $4 million veksel (corporate promissory note) placement earlier this month, which is being underwritten by Russkiye Fondy, a domestic investment fund, Prime-Tass reported.

Pleshakova also said that Transaero had tried to interest other domestic carriers in coordinating commercial activity to help weather the worldwide industry slowdown, but only Aeroflot responded to the suggestion.

She declined to elaborate on the details, saying only that the companies are discussing ways to collaborate on flights to cities that they both service.