Aeroflot has closed the deal on selling Nordavia

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Aeroflot has closed the deal on selling Nordavia

Aeroflot-Russian Airlines has closed the deal on selling of 100% of its subsidiary’s Nordavia shares. The buyer is Norilsk Nickel’s structures, the airline reports. AEX.ru

The final price of the carrier was $235 million, of which Aeroflot has received only $7 million – the price of airline’s joint-stock. The rest $228 million will be used for coverage of company’s obligations including the discounted value of obligations on aircraft operational leasing, which are the future leasing payments not shown in RAS.

Following the results of the deal, $228 million of obligations will be removed from Aeroflot’s accounting for 2011 in accordance with IFRS. In addition, Aeroflot Group expects the increase of group's financial result by about $60 million in 2011 as a result of regional airline's accumulated loss exclusion.

Aeroflot has explained the decision of selling the regional carrier by the coming integration of aviation assets of Russian Technologies into Aeroflot Group. The company has taken a decision on development of bussinbusinesse North-West region of Russia on the basis of larger carrier – Rossiya airline. Thus Aeroflot group has sold Nordavia in order to prevent intercompany competition.