Transaero Calls It Quits as Russia Braces For Bankruptcy
Erica Berardi October 07, 2015
Russia’s Transaero calls it quits after takeover talks with Russia’s state-controlled Aeroflot crumbled.
Russia’s second-largest airline, Transaero Airlines, says it will cease all operations on December 15. Ticket sales were suspended last week, and the airline has promised to refund the cost of all tickets issued for flights beyond the shutdown date, according to a press release on the company’s website.
Transaero’s announcement comes after two creditors, Sberbank and Alfa Bank, said they plan to file bankruptcy proceedings against the struggling airline following the collapse of a takeover plan.
In September, the Russian government arranged for the country’s largest carrier, state-controlled Aeroflot, to take over the majority of debt-ridden Transaero’s shares, Bloomberg reports. But the deal collapsed when Transaero and its shareholders failed to come to a dissolution agreement by required deadlines.
The Russian government said last week that, for Tranaero, bankruptcy is “the only possible option.” Russia’s state-owned RIA Novosti news agency quoted Economy Minister Alexei Ulyukaev, who blamed Transaero’s “ineffective management” for its financial problems.
Transaero is headquartered in Saint Petersburg and operates flights to over 150 domestic and international destinations.
[Photo: Transaero, Facebook]
