Aeroflot is buying Transaero

Old Sep 1, 15, 7:38 am
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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

Last edited by Temedar; Oct 6, 15 at 3:57 pm
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Old Sep 1, 15, 8:41 am
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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, 15 at 10:28 am Reason: Added information
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Old Sep 1, 15, 10:49 am
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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...
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Old Sep 1, 15, 11:40 am
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Originally Posted by Chinatrvl View Post
They have an interesting route network, particularly to predominatly leisure destinations.
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)
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Old Sep 1, 15, 1:28 pm
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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
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Old Sep 1, 15, 2:03 pm
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Originally Posted by OpenSky View Post
What will happen to the A380s? Didn't UN also purchase rights for a 747-8?
Nothing has been announced yet - though a combined airline might use an A380 to BKK, JFK or even VVO
Originally Posted by OpenSky View Post
Also I think there is no way UN's operation could be consolidated to SVO, not without another runway.
Another plunge in Russian economy (and air travel) might also do the job. With their current fleets.. no chance. Even if they move all leisure charters to DME/VKO.
Originally Posted by OpenSky View Post
I wonder if this has anything to do with the Arkady brothers taking over SVO ( essentially)
I don't think they intend to become millionaires
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Old Sep 1, 15, 3:19 pm
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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...
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Old Sep 1, 15, 7:02 pm
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Originally Posted by OpenSky View Post

This is a serious blow to Mr and Mrs. Pleshakov
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.

Originally Posted by woody125 View Post
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...
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.
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Old Sep 2, 15, 12:30 am
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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.
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Old Sep 2, 15, 12:47 am
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Originally Posted by woody125 View Post
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.
Actually the quote should be "Integration into Aeroflot GROUP". Whatever it means, is's probably doable in a year
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Old Sep 3, 15, 5:11 am
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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...

Last edited by lewinr; Sep 7, 15 at 1:30 pm
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Old Sep 4, 15, 9:49 am
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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.
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Old Sep 4, 15, 1:41 pm
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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?)

Last edited by OpenSky; Sep 4, 15 at 5:16 pm
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Old Sep 4, 15, 2:53 pm
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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.
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Old Sep 7, 15, 11:29 am
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So it's SU, not S7, in control: deputy CEO of Aeroflot becomes CEO of Transaero. No major news on integration yet
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