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Russian Technologies will receive 3,61% of Aeroflot’s shares

Russian Aviaton » Thursday May 19, 2011 20:52 MSK
Sukhoi Superjet 100 (SSJ100) premier flight in Aeroflot colors | JSC KNAAPO

Aeroflot and Russian Technologies have harmonized the parameters of a deal regarding transfer of aviation assets of the corporation, which have been assessed last week, Kommersant reports.

Six regional airlines have been assessed at $89 mln (2,5 billion rubles), thus the corporation will receive 3,61% of Aeroflot’s shares in return. This information has been declared today during joint press-conference of Russian Technologies and Aeroflot CEOs – Sergey Chemezov and Vitaliy Savelyev.

The assessment of six regional airlines has been completed last week. According to the instruction of First Vice-Prime Minister Igor Shuvalov and Prime Minister Sergey Ivanov, the assessment of aviation assets of Russian Technologies has been carried out artifically of March 31st 2010 (the price of Aeroflot’s shares has been fixed at the same date).

It is referred to the following airlines: Russia, Kavminvodiavia, Orenburg Air, Vladivostok Avia, Saratov Airlines and Sakhalin Airlines. The total fleet of these airlines includes 133 aircrafts. Part of the assets has been received by Russian Technologies in 2008 as a result of AiRUnion alliance collapse. It has been planes to create a competitor for Aeroflot on the basis of these companies - Rosavia. However, in the beginning of 2010, Vladimir Putin has approved a proposal submitted by Ministry of Transport regarding unviability of Rosavia’s creation and decided to transfer the airlines of Russian Technologies to Aeroflot.

The initial assessment of the assets has been completed in February but Russian Technologies has not been satisfied with its results. The assets have been assessed at $62.5 mln (1,75 billion rubles) thus the corporation would have received less than 2% of Aeroflot’s shares. Russian Technologies believed that it was incorrect not to taking into account such assets as route network of the airlines, slots, office buildings and hangars. So the consolation has been started and Russian Technologies has managed to prove the necessity of aviation assets price increase.