Russian Technologies could be left without its airlines or a stake in Aeroflot because the state corporation and state-run airline cannot agree on how to manage their aviation assets jointly.
The six airlines handed over to Russian Technologies by presidential order in 2008 and 2009 could now be handed over to Aeroflot for management — also by presidential order. As a result, Russian Technologies would be left without a stake in Russia's largest carrier, Reuters reported, citing government sources and people close to Aeroflot and the state corporation.
A source close to Russian Technologies confirmed to Vedomosti that the option was being discussed but said it was not the only one. The main reason this option is even on the table is that the two sides cannot agree on joint management of their assets, the source said.
Cooperation between Aeroflot and Russian Technologies was discussed Monday at a meeting led by First Deputy Prime Minister Igor Shuvalov. A decision has been made, a spokesperson for Shuvalov said, declining to elaborate.
Aeroflot and Russian Technologies could not be reached for comment late Tuesday.
Russian Technologies is managing the companies Rossia, Kavminvodyavia, Orenburgskiye Avialinii, Vladivostokavia, Saratovskiye Avialinii and Sakhalinskiye Aviatrassy, which had a combined passenger volume of 6.65 million people last year.
Initially, Russian Technologies wanted to create its own airline as a competitor to Aeroflot, working in partnership with Moscow City Hall. The partnership fell through, however, and the Aeroflot plan soon emerged. On Feb. 2, Prime Minister Vladimir Putin decided that Russian Technologies would give the aviation assets to Aeroflot and receive in exchange a stake in the company.
A week later, the two sides were supposed to sign a memorandum of understanding, and Aeroflot even prepared some of its own shares ahead of time, reaching agreement with Alexander Lebedev's National Reserve Corporation to purchase a 25.8 stake.
The memorandum remains unsigned, however. The state corporation wants an equal say in the management of the six carriers it now controls, but Aeroflot is opposed, a Transportation Ministry official and a source close to Aeroflot said in early March.
Apparently, the government is concerned that the sides will not reach an agreement because they are both too ambitious, a Transportation Ministry official said. After all, the airlines that would be handed over are not in the best financial shape, especially the largest of them, Rossia, the official said.
Yelena Sakhnova, an analyst at VTB Capital, said she thought that the officials' discussions about whisking away Russian Technologies' six airlines could be simple blackmail. The deal will certainly go through as approved by Putin, she said, but Russian Technologies will be more complaisant.
Putin's press secretary, Dmitry Peskov, declined comment.