Russian airlines Nordavia and Red Wings merge

Red WingsThe shareholders of the airlines Nordavia and Red Wings decided to merge the two companies and began preparations for the consolidation process under common management.

On the basis of Nordavia and Red Wings, it is planned to be created an aviation holding company with a single management company. The purpose of the merger is to consolidate the business, which, among other things, will enable to increase the financial stability of companies, to carry out a full-fledged renewal of the aircraft fleet, to create a unified route network and to increase the efficiency of the enterprise. This, in turn, will contribute to the emergence of a new powerful player in the Russian air transport market. The passenger turnover of the aviation holding in 2018 may exceed 3.5 million people.

“The created holding company will be a sustainable enterprise capable of solving strategic business problems using innovative approaches in management and the best world practices of civil aviation”, said the Chairman of the Board of Directors of JSC Nordavia and CEO of Red Wings, Evgeny Klyucharev.

The aviation holding plans to place an order of the new Russian medium-haul aircraft MS-21. This summer, at the International Air Show in Zhukovsky, Red Wings signed an agreement on hard leasing of 16 MS-21-300 aircraft that will replenish the holding park in the period 2019-2024.

The airlines of Nordavia and Red Wings have been operating for more than an year within the aviation alliance using each other’s route network, as well as sharing the aircraft fleet and an agent ticket sales network. During the merger period, each of the companies will operate under its own brand, and after it completion of the holding company will have a new name.