The Russian government has extended the appointment of Aeroflot CEO Vitaly Saveliev for another five years, according to a spokesperson for Prime Minister Dmitry Medvedev. Saveliev was appointed CEO on April, 10, 2009 for five years; he succeeded Valery Okulov who led the carrier since the end of the 1990s. Saveliev’s term expires in April 2014.
Under Saveliev’s leadership, Aeroflot launched Sukhoi Superjet 100 (SSJ100) operations, ordered 16 Boeing 777s and took delivery of the first of the type. In addition, Aeroflot received an asset transfer of five regional carriers from Rostec Corp., expanding the Aeroflot Group.
Earlier this month, Aeroflot created a Far East subsidiary named Taiga Airlines. Saveliev reportedly told the Prime Minister that the new LCC will be a tough product—“the seats will be like in a suburban trains,” he said, adding that tickets will be sold only via Internet. The ITAR-TASS News Agency quoted Saveliev as saying the average rates will be 40% lower than other carriers. The LCC will compete with the railroad service.