Could S7 and Ural Airlines merge?
 

So basically, could they? I don't know much (read:any) about Russian laws regarding these situations, but it could make a serious competitor to SU, enough domestic force to be a serious long-haul competitor (especially since Transaero is gone) and would provide a massive force at DME (and a serious competitor at LED).

Also, if so, which brand would survive?

Regards,
A

Yes (in theory). S7 is a OW member and a much stronger brand, so if a single brand survives, then it's S7.

There is no point in this,S7 is doing pretty well financially at the moment (extremely well considering the economic environment nowadays in Russia),they don't need financially troubled U6

As for long haul expansion,I am not sure how U6's fleet of 30 or so ageing 319-320-321 would help that. In any case,the prospects of long-haul expansion have been studied by S7 and the conclusion is that they should concentrante on efficiency of short/mid-haul operations and they are doing extremely well here. They have oneworld partners to carry onwards/feed their domestic and European operations,as well as EK/EY and a few other partners.