Aeroflot (SU, Moscow Sheremetyevo) has denied claims it plans on selling a stake in its subsidiary Rossiya (FV, St. Petersburg), a spokesperson for the airline told the Vedomosti business daily. Instead, Rossiya will form an integral part in Aeroflot’s future aviation holding company. The strategy has been approved by the Russian government, the carrier said.
Recent reports have suggested that the Russian Transport Ministry had been instructed to submit proposals for the potential sale of Rossiya following concerns over the Aeroflot Group’s dominance on the Russian market and the subsidiary’s financial performance.
Aeroflot owns a 75% share in the company and earlier this year merged its Donavia (Rostov on Don) and Orenair (Orenburg) subsidiaries into one encompassing airline under the Rossiya brand as part of a drive aimed at adapting its multi-brand strategy to new market conditions.
