The Russian Government has given the Aeroflot Group the greenlight to proceed with the acquisition of rival Transaero Airlines (Moscow Vnukovo). The announcement was made following an Intergovernmental commission meeting chaired by First Deputy Prime Minister Igor Shuvalov on Tuesday, September 1

"In the interests of the development of the commercial aviation and creating one of the largest in the world group of airlines [sic], the commission has approved the acquisition of JSC Transaero Airlines by Aeroflot group," a communique said.

The Aeroflot board is due to convene this Thursday to consider the buyout which already has the backing of Transaero shareholders.

While official details of the deal have yet to be disclosed, unofficial reports in the Russian press attributed to meeting attendees indicate Aeroflot will acquire 75%+1 share in Transaero for 1 Rouble (USD0.01).

Faced with debts of USD990 million and a worsening Russian economy, Transaero has requested Moscow's financial assistance in turning around its fortunes. As such, according to the Vedomosti paper, Transero shareholders were confronted with two options; either voluntarily relinquish control of the company to an external firm, such as Aeroflot, or face bankruptcy. The transfer of control will occur gradually - over 12 months - with Transaero to be restructured and integrated into the Aeroflot Group.

Founded (and still controlled) by Olga and Aleksandr Pleshakov in 1990, Transaero operates a total of 106 aircraft ranging from B737s to B777-300s on scheduled and charter flights covering Russia, Europe, Asia, North America, North Africa, and the Caribbean.