Ivan Yates
Question:132 Mr. Yates asked the Minister for Tourism, Transport and Communications if he will outline the arrangements operating between Aer Rianta and Aeroflot.
Written Answers. - Aer Rianta/Aeroflot Operations.
Aeroflot use Shannon Airport as a transit stop for the majority of their air services between the USSR and North and South America. This arrangement dates from 1979 when Aer Rianta constructed a fuel farm at the airport to enable Aeroflot to supply Soviet fuel to their own aircraft. Aeroflot transitted some 2,000 flights through Shannon in 1990 and Aer Rianta expect this number to increase in 1991.
In 1983, Aer Rianta entered into a barter arrangement with Aeroflot under which Aer Rianta are paid in Soviet fuel instead of hard currency for landing fees, catering and other services provided for them at Shannon. Aer Rianta subsequently extended the fuel farm and formed a subsidiary company, Shannon Aviation Fuels Limited, to sell Soviet fuel to other airlines at competitive rates, enhancing Shannon's attractiveness as a transit stop.
In August 1988 Aer Rianta established a facility at Shannon for the painting and refurbishing of the Aeroflot aircraft fleet and set up a wholly owned subsidiary, Aer Rianta International (Aircraft Services) Ltd., for this purpose.
Early in 1988 Aer Rianta and Aeroflot established a joint venture company, "Aerofirst", to set up and operate the first duty free shop in the Soviet Union at Moscow's International Airport. This shop was opened on 1 May 1988. Aer Rianta have since opened up duty-free shops in Leningrad as a joint venture with Aeroflot and arrangements have been made to open up similar shops shortly in both Kiev and Tashkent.
In addition, Aer Rianta are involved in the provision of inflight duty-free sales on all Aeroflot international flights out of Moscow.