MOSCOW, May 16 (RIA Novosti) - Russia's Transportation Ministry said Tuesday it supported a bid made by national air carrier Aeroflot to increase its share of the Russian air-transportation market to 50% from the current 30%.
"Aeroflot has to present a business plan to the Transportation Ministry," deputy minister Alexander Misharin said, adding that the ministry had given Aeroflot a provisional list of companies that could be incorporated into the airline.
Russia's federal property watchdog has proposed consolidating air-transportation companies in which the government has a majority stake under Aeroflot management.
"In the opinion of the Federal Agency for the Management of Federal Property, the best way to create a highly competitive national airline is to consolidate government stakes in the state-owned airlines in the charter capital of one major air-transportation company," said ministry department head Karl Ruppel referring to a letter from the agency.
Ruppel said the agency was seeking a government stake of at least 75% in Aeroflot's charter capital after the consolidation, but added that the ministry was considering an alternative means to consolidate airlines' shares by creating "an asset-management special arm" with a 100% government stake.
"Both consolidation options probably have pluses and minuses," he said, adding that Russia's aviation community should draft a balanced program on the issue.
The economics ministry, however, has sent a warning message on the issue. Deputy Minister Kirill Androsov said that consolidation of regional airliners' assets would be unlikely "to contribute to market competition," which is vital for the sector.
