The planned merger of Russia’s #2 airline, Transaero, into #1 Aeroflot (reported HERE a month ago) has come undone, and Transaero will end operations on Dec. 15. No new tickets are on sale, and tickets for flights after Dec. 15 will be refunded.
Transaero, which has been Russia’s largest domestic carrier, had ambitious plans for carrying large numbers of vacationers as well as business travelers on large aircraft, including a large order of A380s which would have been set up for over 600 passengers each.
But aside from any questions about the company’s financing—and there are many—the collapse of oil prices in the past year, which has helped many airlines, has had a negative impact in countries whose economies depended on selling high-priced oil. Aeroflot, controlled by the Russian government, was ordered to buy 75% of Transaero’s shares, and to continue operations.
It is not clear why Aeroflot and Transaero were unable to complete the agreement, and it is also unclear what effect the shutdown will have on Russia’s air traffic. At a guess, Aeroflot will take over some of the abandoned routes, and private carriers may try for others; possibly some less profitable routes will find themselves without service.
More details from AirwayNews HERE
