07 June 2004 03:41
Aeroflot Loses Key Reformer
The man who is widely credited with overhauling business at Aeroflot has unexpectedly quit as a state representative
on the airline's board.
Alexander Zurabov, a former president and chairman of Aeroflot, dropped a bombshell Saturday at what was expected to
be a routine annual shareholders meeting. After taking the floor before a vote on candidates to the 11-seat board,
Zurabov announced he was taking his name off the ballot due to differences with management on the airline's
development.
Later he said that Prime Minister Mikhail Fradkov had signed off on his decision to give up the post.
"How long could this last? It feels nice to be free," Zurabov said after he emerged from the meeting. He
was evasive about his future plans.
For the past year and a half, Zurabov has been in a standoff over the airline's business with CEO Valery
Okulov.
Okulov was not available for comment on Zurabov's resignation Saturday.
The meeting had been seen as a formality ahead of an extraordinary shareholders meeting on July 24, called to elect a
board that would reflect the government reshuffle this spring.
As aviation adviser to former Prime Minister Mikhail Kasyanov, Zurabov was also an Aeroflot board member representing
the state. Yet Zurabov did not retain the adviser's post under Fradkov.
A former banker, Zurabov joined Aeroflot in late 1999. He has been credited with bringing the airline, which lost $60
million in 1999, into the black with an $8.6 million profit the following year; optimizing expenses; overhauling its
route network; and restructuring its fleet to include brand-new Airbuses.
Zurabov and Okulov had a falling out as the CEO began to take a more active role in financial decisions, a company
source said, speaking on condition of anonymity.
Zurabov "was very tough but also very open, ready to step into conflicts and resolve them," said Vasily
Bobrov, former head of Aeroflot's aviation technical center .
"But it is tough for two bears in one lair."
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[The Moscow Times] |
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