By Howard Gethin in Moscow
Russia’s largest carrier Aeroflot has unveiled a plan to consolidate several of Russia’s smaller state-controlled airlines operating in the far east of the country.
The Aeroflot-devised plan, which was revealed by general director Valery Okulov last week, envisages consolidation of several small operators around two of the largest airlines in the region, DalAvia and Vladivostokavia, as well as the establishment of an Aeroflot subsidiary combining Chukotavia, Koryaksaya, Magadansky Airlines and Sakhalinsky Aviatrass, all state-owned local operators.
Aeroflot aims to have a 70-100% shareholding in the management of the future holding, which would be named Aeroflot-East, which in turn would hold a 25% plus one share in the local airlines, with 75% minus one share remaining in state hands.
According to the deputy director of Aeroflot, Lev Koshlyakov, DalAvia must remain the centre of the proposed airline; after its shares are sold in 2007, they should be exchanged for Aeroflot shares along with an additional issue of 250 million shares.
After this, private shareholders in Vladivostokavia (which is currently 51% state owned) will be able to either swap their shares for DalAvia shares or sell their stake to Aeroflot.
The airport and cargo elements of the airlines would be spun off into separate businesses.
The plan calls for considerable state and regional support, including subsidised airports and reduced fuel pricing. The value of the consolidated companies has not been calculated because they have not yet been privatised.
The plan is the latest in a series of Aeroflot-devised schemes for consolidation of national carriers Government ministries quoted in the Kommersant newspaper reiterated that the plan is only an Aeroflot scheme and is not government sponsored, although a government decision on the plan is likely within a month.
Source: Flight International
