Ministry moves to consolidate regional Russian airlines

MOSCOW, July 31 (RIA Novosti) - Russia's economics ministry said Monday it had drafted a decree on the consolidation of regional airlines.

"A decision on consolidation has been adopted and approved by the president. A corresponding draft of the decree has already been prepared," Economic Development and Trade Minister German Gref said.

The holding will be established on the basis of the AirUnion alliance, which was created in 2005. The alliance currently comprises five air companies: Siberia's KrasAir, Omskavia and Sibaviatrans; Moscow's Domodedovo Airlines; and Samara, based in the Volga area.

Gref said a controlling stake (more than 50%) in the new holding would belong to private shareholders.

The government currently holds a 51% stake in KrasAir, 50% in Domodedovo Airlines, and 46.5% in Samara, while Omskavia and Sibaviatrans are private companies.