Aeroflot to form new venture by integrating subsidiaries

Airbus A319 aircraft by Rossiya :: Fyodor Borisov / Transport-Photo.com

Aeroflot is planning to integrate its four subsidiaries into one new structural unit, which will focus on services in the medium price segment, RIA Novosti newswire reports, citing Aeroflot’s CEO Vitaly Saveliev.

The idea is not completely new: in August, Saveliev expressed concern that there were too many brands within Aeroflot Group, and called for greater synergy. Aeroflot’s three subsidiaries are currently based in different cities across Russia: Rossiya in St. Petersburg, Donavia in Rostov, and OrenAir in Orenburg. The fourth one, Aurora, is a regional airline serving Russia’s Far East and does not mix easily with the rest. The fifth, Pobeda, is a low-fares airline. Logically, the new organization could unite the former three carriers, but Saveliev did not specify where it might be based.

Also in August, Aeroflot completed the process of squeezing the subsidiaries out of its home base in Sheremetyevo, explaining that they were causing constraints to its own operations. Donavia transferred all of its flights from Moscow to Domodedovo. OrenAir and Rossiya currently use both Domodedovo and Vnukovo, the former planning to concentrate its operations in Domodedovo.

Industry experts reacted to Saveliev’s announcement with the speculation that the new airline could operate some of Transaero’s aircraft owned by that troubled carrier’s creditors. The move would help keep the aircraft flying, i.e. generating revenue for the banks.

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