Aeroflot pulls out of Transaero deal

TransaeroRussia’ state airline Aeroflot has decided not to go ahead with the acquisition of debt-laden Transaero after shareholders in the struggling budget airline missed the deadline for putting up an offer for the purchase of their 75% stake. The decision leaves Transaero’s future in limbo.
Last month, Aeroflot threw a lifeline to the private carrier which is on the verge of collapsing under the weight of net debts of $1.63bn, 
Russian authorities have not ruled out the possibility that Transaero may go bankrupt. Last Thursday, the country’s Transport Minister Maxim Sokolov told reporters that the government had ordered a halt in ticket sales for Transaero flights, but that Russia’s other airlines would fulfil Transaero’s obligations to the estimated 650,000 people who had already bought tickets .

Source: reuters