As Aeroflot Russian International Airlines (Aria) prepares to transfer 49 per cent of its stock to employees, the carrier has averted the danger of a break up of its international operations.
But while the privatisation plan has been approved, it is unclear when it will be implemented. Under the first part of the process, employees get 49 per cent of the stock in exchange for vouchers or cash, though officially the ability to use vouchers to purchase shares in privatised companies expired in Russia last year.
Aria had been under serious threat of losing international assets from proposals by the State Committee for Property (GKI) that would have allowed three key Russian branches of the former Aeroflot, already constituted as separate joint stock companies, to achieve independence through privatisation. An Aria representative at a recent conference in Vienna said they have secured a 'civilised approach' instead.
Two of the main subsidiaries - Russian Airlines (RAL) and a proposed charter operation Gold Star - have won approval for their independent privatisation but had to return their aircraft - including RAL's five A310s - and licences to Aria. Unless they come to an agreement with Aria they must start again. 'They are separate stock companies with nothing. Without aircraft, licences or routes,' says Aria deputy director general, Anatoliy Efimenko. The third company, cargo operation Vityaz, based at Moscow/Sheremetyevo airport, has decided to stay with Aria rather than lose its assets, says Efimenko.
However Aria is concerned over loss of control of its main base at Sheremetyevo, which is being hived off and will remain state-owned.
However Aria is concerned over loss of control of its main base at Sheremetyevo, which is being hived off and will remain state-owned.
Source: Airline Business
