The previously announced buyout of Transareo by Aeroflot has been called off. The debt-laden Russian carrier failed to consolidate the necessary number of shares to facilitate the transaction, leaving it set to crumble. Aeroflot was set to buy 75% + 1 share for 1 ruble and assumption of debt. Instead the carrier has stopped selling tickets and will cease operations on 15 December 2015.
Read more: Transaero’s Tiger Set to Fly
Given the economic challenges in Russia and the relatively sharp devaluation of the ruble in recent years this move is not too surprising. Transaero grew massively and had even more planes set for delivery, including some A380s. Instead the tiger-liveried 747 and the rest of the fleet will be grounded. One Aeroflot official was quoted suggesting that as many as half of the Transaero employees might find work with the state carrier but that will take some time to play out.
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