The government is thinking about selling the “daughter” of “Aeroflot”

The Ministry of transport to develop proposals on the possibility of sale of “Aeroflot” airline “Russia”. Instructions to the office gave Deputy Prime Minister Arkady Dvorkovich, the newspaper “Vedomosti” referring to Federal officials.

Under the control of “Aeroflot” is 75% minus one share in “Russia”, a blocking stake is controlled by the administration of St. Petersburg.

As noted by one of the interlocutors of the newspaper, the instruction is originated from the report of the expert Council under the government, which referred to the reduction of competition in the Russian market of air transportation. The experts recalled that worldwide air carriers do not operate in three segments at once. However, as underlines the edition, that and running “Aeroflot”. The airline calls itself a premium carrier, “Russia” carrier of the economy segment, and the “Victory” which also is a “daughter” of “Aeroflot”, is designated as the low-cost carrier.

Another official said that the report also stated that “Aeroflot” still not done “Russia” break-even. “Daughter” does not fit into the group and is a competitor for the “Aeroflot” and “Victory”,

According to the representative of the Ministry of economic development Elena Lashkina, the Ministry has already sent its position to the Ministry of transport, which is October 10, will present a report to the government. “We are for the privatization and development of competition. We need to develop the availability of air transport from St. Petersburg, not only from Moscow”, — told “Vedomosti” Deputy economic development Minister Yevgeny Yelin.

As reported by one of the Federal officials, the Ministry of transport is in favour of the sale of “Russia”. The representative of the transport Department said that the Ministry of transport has established a working group to consider the development strategy of Russia”, and also questions of development of regional transportations.