Aeroflot is buying Transaero
Sep 1, 2015, 7:38 am
#1
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Aeroflot is buying Transaero
Update October 2015: Aeroflot is NOT buying UN. Transaero going straight to liquidation/bankruptcy.
Russian media reports that SU will buy a majority stake in UN, effectively bailing out the debt-burdened airline
Russian media reports that SU will buy a majority stake in UN, effectively bailing out the debt-burdened airline
Last edited by Temedar; Oct 6, 2015 at 3:57 pm
Sep 1, 2015, 8:41 am
#2
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Transaero officials confirm the news. Aeroflot to buy 75% of UN in a government-brokered deal for a token sum of 1 ruble. UN CEO, top management to be replaced
Last edited by Temedar; Sep 1, 2015 at 10:28 am Reason: Added information
Sep 1, 2015, 10:49 am
#3
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Oh... UN was apparently bancrupt with 1 bio USD of dept. They have an interesting route network, particularly to predominatly leisure destinations. If there's integration in SU, it could open a lot of possibilities.
That said, I only flew them once in 2001 from FRA to DME on a A310. That was an adventure...
That said, I only flew them once in 2001 from FRA to DME on a A310. That was an adventure...
Sep 1, 2015, 11:40 am
#4
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Expect a big part of their leisure routes scrapped no later than spring, and some probably even earlier - there's no way SU, UN or anyone can fill the seats with the Russian ruble losing half its value post-crime(a)
Sep 1, 2015, 1:28 pm
#5
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What will happen to the A380s? Didn't UN also purchase rights for a 747-8?
Also I think there is no way UN's operation could be consolidated to SVO, not without another runway. I wonder if this has anything to do with the Arkady brothers taking over SVO ( essentially)
This is a serious blow to Mr and Mrs. Pleshakov
Also I think there is no way UN's operation could be consolidated to SVO, not without another runway. I wonder if this has anything to do with the Arkady brothers taking over SVO ( essentially)
This is a serious blow to Mr and Mrs. Pleshakov
Sep 1, 2015, 2:03 pm
#6
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Sep 1, 2015, 3:19 pm
#7
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From the article on The Moscow Times site: "Newspaper Vedomosti reported earlier on Tuesday that the company’s integration into Aeroflot will take a year to complete."
Either Russian air carriers are merger gurus or this is not going to be a very large scale merger. One year mergers completed in full are not a reality. Of course, YMMV...
Either Russian air carriers are merger gurus or this is not going to be a very large scale merger. One year mergers completed in full are not a reality. Of course, YMMV...
Sep 1, 2015, 7:02 pm
#8
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Indeed. It looked like they had done a great job building the company up over the years (up until last year at least) and built their niche market well.
Possible, but they do have plenty of experience with mergers and purchases.. Orenair, Rossiya, SAT/Vladavia (Aurora).
All the regional and competing airlines are slowly getting bought out and the airline seems to be returning to the company of old.
From the article on The Moscow Times site: "Newspaper Vedomosti reported earlier on Tuesday that the company’s integration into Aeroflot will take a year to complete."
Either Russian air carriers are merger gurus or this is not going to be a very large scale merger. One year mergers completed in full are not a reality. Of course, YMMV...
Either Russian air carriers are merger gurus or this is not going to be a very large scale merger. One year mergers completed in full are not a reality. Of course, YMMV...
All the regional and competing airlines are slowly getting bought out and the airline seems to be returning to the company of old.
Sep 2, 2015, 12:30 am
#9
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Yes, it looks like the old SU is back. Sort of. I'm fine with that as long as the old $100 handshakes so many people like to talk about never come back, and quality remains. So much work has been put in to achieve that.
As in the United States and Europe, after the consolidation of carriers, I fully expect prices to increase, especially on intercontinental routes where UN competes ( no more). Sadly S7 is not really an intercontinental carrier, and doesn't really offer much competition, except to LED and OVB.
Prices to Simferopol will of course continue to be most affordable, on all carriers.
I fully expect.
As in the United States and Europe, after the consolidation of carriers, I fully expect prices to increase, especially on intercontinental routes where UN competes ( no more). Sadly S7 is not really an intercontinental carrier, and doesn't really offer much competition, except to LED and OVB.
Prices to Simferopol will of course continue to be most affordable, on all carriers.
I fully expect.
Sep 2, 2015, 12:47 am
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Sep 3, 2015, 5:11 am
#11
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I wont be surprised to see the merger go this way:
1. SU takes over UN routes that can be sustained on a regular schedule. They probably have capacity for some of this without any Transaero aircraft or staff. (Hopefully they would start with Kazakhstan routes).
2. Leave Transaero as a discount/charter brand "in the Aeroflot group".
3. Fire anybody not necessary to achieve #1 and #2.
Finally I just want to be able to fly SU to Kazakhstan and be able to redeem miles from any skyteam program for UN flights...
1. SU takes over UN routes that can be sustained on a regular schedule. They probably have capacity for some of this without any Transaero aircraft or staff. (Hopefully they would start with Kazakhstan routes).
2. Leave Transaero as a discount/charter brand "in the Aeroflot group".
3. Fire anybody not necessary to achieve #1 and #2.
Finally I just want to be able to fly SU to Kazakhstan and be able to redeem miles from any skyteam program for UN flights...
Last edited by lewinr; Sep 7, 2015 at 1:30 pm
Sep 4, 2015, 9:49 am
#12
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The plot thickens:
Transaero's creditors are against merger with SU, prefer to put it under S7 management instead and possibly keep it as a separate company not owned by another airline - Russian media.
Transaero's creditors are against merger with SU, prefer to put it under S7 management instead and possibly keep it as a separate company not owned by another airline - Russian media.
Sep 4, 2015, 1:41 pm
#13
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I think that makes a lot of sense, from a consumer perspective as well.
That would give S7 the authority to operate various intercontinental routes that it currently doesn't have. And turn S7 into a true SU competitor.
But does S7 have the cash and the will? ( and in Russia, the connections + blessing?)
That would give S7 the authority to operate various intercontinental routes that it currently doesn't have. And turn S7 into a true SU competitor.
But does S7 have the cash and the will? ( and in Russia, the connections + blessing?)
Last edited by OpenSky; Sep 4, 2015 at 5:16 pm
Sep 4, 2015, 2:53 pm
#14
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S7 definitely does not have the cash to support UN's pile of debt and was rumored to have no desire to get involved. As for the connections - UN's creditors are some of the biggest state banks, which are obviously well-connected.