The Aeroflot Group is planning to merge its Donavia (Rostov on Don), Rossiya (FV, St. Petersburg), and Orenair (Orenburg) subsidiaries into one encompassing airline under the Rossiya brand as part of a drive aimed at adapting its multi-brand strategy to new market conditions.
Aeroflot's management has been tasked with drafting the necessary additions to the Group's Strategy and Long-Term Development Plan for 2016-2021.
"The Group expects to generate synergies of several billion roubles from this combination, driven by product improvements and an expanded customer offering," an official communique said.
Announced following its most recent boardroom meeting, the Group will move to a new operational structure comprising four companies which, aside from the new Rossiya operation, will include Aeroflot's mainline operations, LCC Pobeda (DP, Moscow Sheremetyevo), and the Far Eastern carrier Aurora (HZ, Yuzhno-Sakhalinsk).
Russian media outlets have indicated that Aeroflot is reportedly considering amalgamating a bankrupt Transaero into the Rossiya umbrella carrier. Though Aeroflot's takeover offer has now expired, Transaero will continue to operate its own flights up to December 15 with Aeroflot and its subsidiaries providing assistance where needed.
