"Aeroflot" is ready to sell its largest subsidiary - the airline company "Rossia", - writes the newspaper "Vedomosti" with reference to the three federal officials. Previously, "Rossia" became the second air carrier in Russia: it included "Orenburg Airlines" and "Donavia".
According to the newspaper, the Deputy Prime Minister Arkady Dvorkovich ordered Ministry of Transport of the Russian Federation to present proposals on the sale possibility of "Aeroflot’s” subsidiary "Rossia". The Russia's largest carrier controls 75% minus 1 share of "Rossia". Blocking shareholding has the St. Petersburg city administration, there is also the head office of the company (additional offices and branches located in the Orenburg and Rostov-on-Don).
According to interlocutor of "Izvestia", the order was born from the report of the Expert Council of the Government, in which the reduction of competition on the Russian airline market was mentioned. “The document said, that in the world practice the air carriers are not operating in three segments at once (and "Aeroflot" works – the company calls itself as a premium carrier, "Rossia" is a budget one and another "daughter" - "Pobeda" is a low cost airline)”, - told another interlocutor.
It is noted, that October 3, 2015 the “Aeroflot" said, that the company "Orenburg Airlines" will cease to exist. Orenburg airline is waiting for incorporation with the other two carriers of "Aeroflot" - the airline "Rossia" and "Don-Avia". The new company will fly under the brand of "Rossia". The representatives of "Aeroflot" stated, that the new company will carry about 10 million passengers a year. In Orenburg, the branch of "Rossia" was set up on the basis of the company, as well as repair base for Boeing. The combined company has started operations from March 27, 2016. The schedule of the carrier has flights to 81 points of 15 countries, including 54 points in the Russian Federation. It is based in St. Petersburg with branches in Moscow, Rostov-on-Don and Orenburg.