Aeroflot takes on 56 new routes as deal to buy ailing Transaero fails

Aeroflot has failed to acquire its planned purchase of a major stake in ailing Transaero, Russia’s second-largest and privately-owned airline which employs over 10,000 staff. As a consequence its failing financial status has been declared hazardous to passenger safety by the federal air transport agency, Rosaviatsia, and the Transavia has been grounded. Its operator’s certificate has also been revoked for the foreseeable future. It is a blow for both airlines considering Aeroflot had received government approval back in September to buy 75% + 1 of Transaero’s shares for the nominal sum of 1 rouble.
However Aeroflot was unable to strike a deal with the now defunct airline’s creditors who, combined, were owed somewhere in the region of 250 billion roubles (US$5.2 billion). Transavia had filed for bankruptcy on 1st October and all the passengers booked to fly with the airline on its 141 routes have now been reallocated to other airlines, including Aeroflot. Subsequent to that, Aeroflot has now taken over 56 of the routes, with some between Russia and Kazakhstan—including routes from Moscow to Astana, Almaty, Aktau, Atyrau, Kokshetau and Shymkent.
However because of the strict bilateral agreement that exists between Russia and Kazakhstan, Aeroflot has not been able to make inroads into that region. On the upside, it has obtained designations for European routes where Transaero was the second Russian-designated carrier, including Moscow to Rome, Milan and Paris; Saint Petersburg to Rome and Milan; and Moscow to New York. Aeroflot has also obtained other designations for popular routes including Moscow to London, Vienna, Tel Aviv, Istanbul, Dubai and Salzburg.
The airline started operating 25 years ago and it had been operating a 106-strong fleet, mainly composed of long-haul Boeing jets. However the airline’s demise is adding to the expanding exodus of foreign carriers, such as EasyJet, Air Berlin and Lufthansa who have announced their intention to pull out of the Russian sector, citing weak demand as Russia continues to struggle under international sanctions imposed as a consequence of its actions in Ukraine.