MOSCOW, January 19 (RIA Novosti) - Russia's largest air carrier Aeroflot will file a bid for the purchase of the Czech national air company, Czech Airlines (CSA), a business paper reported on Monday.
The Czech Finance Ministry will announce on Monday the terms of the tender for the privatization of a 92% stake in CSA, which performs flights to 104 destinations in 44 countries, Vedomosti reported, citing the ministry.
Aeroflot's deputy general director, Mikhail Poluboyarinov, told Vedomosti that the company planned to file an application for the tender, but declined to say how much the Russian flagship air carrier was prepared to pay.
Meanwhile, the Czech Finance Ministry said that it had received inquires about the terms of the tender from more than 10 companies, the paper said.
An Aeroflot spokesman said that the Russian air carrier would seek loans to pay for the deal, but would file a bid jointly with a financial partner to share payments.
Yelena Sakhnova, an analyst with VTB Capital, told Vedomosti that the whole of CSA could cost about $800 million (more than $735 million for 92%). However, this amount should be reduced by the sum of the company's debt, which CSA has not disclosed.
At the same time, Yevgeny Shago, head of the analysis department at Ingosstrakh-Investment management company, told Vedomosti that CSA could be worth no more than $400 million.
Meanwhile, Oleg Panteleyev, editor-in-chief of Aviaport.ru, told Vedomosti that CSA is the best of all the assets in which Aeroflot has ever displayed an interest, as the Czech air company has low debts and good positions in Eastern Europe.
However, the purchase of a European air company is not as advantageous as a year ago, as air carriages are declining in Europe while competition is increasing. Over the year, passenger traffic in Europe rose 2.2% but fell 1.3-4.6% in October-November, according to the International Air Transport Association, the paper said.
However, the National Reserve Corporation, which holds 28% of Aeroflot shares, said on Monday it did not support the company's plans to buy a 92% stake in Czech Airlines.
"It has been reported that Aeroflot will finance the deal with credit resources and, on top of that, with the support of some mysterious co-investor. We believe that in the current difficult conditions it is unreasonable to burden the air company with new debts," said Alexander Lebedev, chairman of the National Reserve Corporation board of directors.
If Aeroflot needs an air carrier in Europe, the National Reserve Corporation is ready to offer Germany's Blue Wings, in which it holds a stake, Lebedev said.
