Almost two decades after the old giant Aeroflot operation was split up with the creation of around 300 regional operators, reports suggest Russia has scrapped plans to create a new powerful airline group under the RosAvia banner and is instead looking at privatising the six Russian opeators which were to form the backbone of RosAvia, and merging them into Aeroflot. Read the ITAR-TASS report here. The RosAvia project was itself established out of the collapse of the AirUnion grouping in 2008.
Reports, citing Russian transort minister Igor Leviten, suggest the merger would increase Aeroflot’s domestic market share from 15-20% to 30-35%, and that 15 air carriers controlled around 80% of the market share as of the end of 2008. “This means that the process of the sector’s consolidation is under way. This is a global trend and the same can be seen in other countries,” he is quoted as saying.
It comes just days after a deal was agreed under which Russian tycoon Alexander Lebedev sold his 25.8% stake in Aeroflot to the state, increasing the latter’s stake in the carrier to 77%. More on this here.