Reports are emerging that the merger of Vnukovo Airlines and Sibir is postponed and perhaps cancelled

Published: 7/27/1999

It seems despite Concise's enthusiasm for the consolidation of the airline sector in Russia, the leading light of the process, the merger of Vnukovo Airlines and Sibir has been postponed, if not cancelled according to Vladislav Filev, the joint General Director of Sibir and Vnukovo Airlines. According to reports he is leaving his post as General Director of Vnukovo Airlines after only one and a half months. Filev's acceptance of the GM position from the controlling interests at Vnukovo, was anticipated as a precursor to the merger of the two airlines given that Mr Filev became General Director of both Vnukovo Airlines and Sibir. The initial feedback from Sibir was that the initial period of joint General Directorship was intended to allow Filev to analyse the situation at Vnukovo and arrange the terms of the merger. According to unconfirmed reports this process only led to Sibir loosing interest in the merger, as Vnukovo, already considered to be in a fairly fragile state was found to be in an even more precarious financial condition than first expected. Given the desire of Filev to expand Sibir into a national carrier capable of competing with Aeroflot, the rejection of merger with the number two carrier in Russia must be regarded as a setback, but it does suggest that the perilous condition of Vnukovo hinted at by rumour, may not have been wide of the mark. For Sibir, Concise expects the dating game has only just begun and the low level expansion through the absorption of small competitors in Western Siberia will continue and given the revealed ambitions of Filev, perhaps more ample suitors will be sought in a market where many are eager for both brides and grooms capable of bringing both capital and proven professional management.

Article ID: 702