Aeroflot Backs Out Of Transaero Acquisition

Aeroflot has pulled the plug on its proposed bid for troubled carrier Transaero, a decision which now puts the airline on the verge of bankruptcy.

Aeroflot has pulled the plug on its proposed bid for troubled carrier Transaero, a decision which now puts the airline on the verge of bankruptcy.

Following government backing last month for Aeroflot to buy a 75 per cent stake in Transaero in order to stave off bankruptcy, the Russian flag carrier said on Thursday (October 1) that a formal proposal wasn’t submitted by Transaero on the September 28 deadline and it had no plans to extend this for further talks.

According to Russian media reports, the deal was further set back due to Transaero's main creditors failing to formulate a plan to solve its debt issues.

TAGS: Europe
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