Within cooperation with Russia's leading air carrier, VTB has set a RUB 2.5 billion credit limit for Aeroflot Russian Airlines JSC (Aeroflot).
The new limit will allow members of Aeroflot Group to take advantage of VTB's ample opportunities in financing operational needs, using a full range of instruments accepted in the international banking practice. This includes lending, standby letters of credit and bank guarantees.
Cooperation with air carriers is a priority business line for VTB. The Bank's total credit risk for this industry currently exceeds RUB 19 billion. VTB actively participates in projects and programs related to developing airport business. One of these projects is the construction of Terminal 3 in Sheremetyevo, which involves VTB, Aeroflot, VEB and JSC "International Airport Sheremetyevo". VTB has allocated USD 264 million to implement this project.
Aeroflot Russian Airlines JSC (Aeroflot) is Russia's largest air carrier. It has two subsidiaries, Aeroflot-Don (Rostov-on-Don) and Aeroflot-Nord (Arkhangelsk). The company also plans to establish a third subsidiary in the Far East Region. Cargo traffic is carried by another subsidiary, Aeroflot-Cargo.
Aeroflot connects 95 destinations in 48 countries. In Russia, it has branches in St. Petersburg, Sochi, Magadan and Krasnoyarsk. Aeroflot serves 61 destinations abroad (including 38 in Europe, 10 in Asia, 6 in the Middle East, 5 in North America and 2 in Africa). The carrier's share in the Russian market of scheduled international flights is over 45%. Aeroflot's share in domestic flights amounts to 12.5%, and attains 17% with subsidiaries.