Author Topic: Russia plans to merge Aeroflot with others to make a super airline  (Read 3364 times)

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[b]Russia plans to merge Aeroflot with others to make a super airline[/b]

New Plan For State Airline Champion

The government has come up with a plan to create a national airline champion by merging Aeroflot with six other state airlines, according to a letter from the Transportation Ministry published Thursday.

Under the plan, state corporation Russian Technologies would transfer control of its six airlines to the federal government, which would in turn transfer them to Aeroflot in exchange for an increased stake in Aeroflot via an additional share issue, the Transportation Ministry said.

The ministry wrote to First Deputy Prime Minister Igor Shuvalov, saying Russian Technologies would give the assets to the state “free of charge,” according to a letter published on

The government has been mulling the merger since it became clear that Russian Technologies’ earlier plans, to jointly create a new national carrier with the Moscow city government fell through. Plans were also considered that would have seen Russian Technologies get a stake in Aeroflot in exchange for the six airlines.
Instead, Aeroflot has been chosen as the base with which to join the airline assets, which include Vladivostok Avia, Saravia, Sakhalin Airlines, Rossiya, Orenair and Kavminvodyavia.[/b]

The plan is fraught with legal complications, however. Three of Russian Technologies’ airlines technically are not yet owned by the conglomerate, as they are still registered as “federal state unitary enterprises” and have yet to be converted into joint-stock companies so as to be put under the control of Russian Technologies.

In July 2008, President Dmitry Medvedev ordered that the companies be reconstituted as joint-stock companies within nine months, but the order was never carried out.