“Aeroflot” will sell its stake in the airline “Russia”

   Economy   

Moscow. September 22. INTERFAX.RU – the Question of sale of a share “Aeroflot” in airline “Russia” is not on the agenda, have informed “Interfax” the representative of the carrier on Thursday.

“The strategy of Aeroflot group is to create a domestic aviation company and airline “Russia” is an integral part of it. The strategy was approved by the government of Russia”, – said the representative of “Aeroflot”.

That the Ministry of transport of the Russian Federation on behalf of the Deputy Prime Minister Arkady Dvorkovich will work out proposals on the possibility of the sale of Aeroflot’s subsidiary airline “Russia”, said on Thursday the newspaper “Vedomosti” referring to Federal officials.

According to the newspaper, the reason for the order was the report of the expert Council under the government. It said that the Russian air transportation market decreased competition, and due to the sale of “Russia” it is possible to increase to increase. Another argument of the Board – “Russian” does not fit into the group, competing with himself “Aeroflot” working in the premium segment and low-cost “Victory”. In addition, Russia remains unprofitable.

At the moment, Aeroflot controls 75% minus one share of “Russia” owns a blocking stake of St. Petersburg’s administration. “We are for the privatization and development of competition, – said Deputy economic development Minister Yevgeny Yelin. – Should develop the availability of air transport from St. Petersburg, not only from Moscow.”

The Ministry of transport also for the sale of “Russia”, told “Vedomosti” one of the Federal officials. The representative of the Ministry said that the Agency has established a working group, which deals with the “development strategy of Russia”, including the issues of development of regional transportations. Until October 10 the Ministry of transport will submit a report to the government, the newspaper writes.

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