Siberia Airlines is seeking to reinforce its growing hold on domestic markets and to expand international service in a bid to overtake Aeroflot as Russia's leading carrier. Siberia Airlines, a private company 25.5% controlled by the Russian government, has been battling flag carrier Aeroflot for control of smaller carriers as consolidation has shaken out the country's once fragmented airline industry. It became Russia's second largest carrier in 2001 when it gobbled up Vnukovo in the first major merger in Russian airline history (AW&ST Aug. 6, 2001, p. 50). The acquisition provided the Novosibirsk-based operator with a strong network in European Russia, which it had lacked, and doubled its passenger volume.
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