(MENAFN- The Journal Of Turkish Weekly) Russian flag carrier Aeroflot will acquire control of troubled airline Transaero.
Transaero said in a statement late Tuesday that it "would be integrated" into the Aeroflot group, and that a government commission had approved the deal.
State-controlled Aeroflot, Russia's largest airline with 37 percent of the Russian market according to the Russian Federal Air Transport Agency, will gain an additional 14.4 percent by taking over and integrating Transaero.
Transaero had been struggling with RUB 67.5 billion ($1 billion) in debt as of June 30, according to its report for the first half of the year. All Russian airlines have been struggling to remain profitable in the challenging economic environment in the country - Russia has been in recession since January.
According to a report by agency Ria Novosti, Aeroflot acquired the controlling stake in Transaero with a symbolic payment of one ruble.
"Transaero's activities will be restructured and integrated at the operational level," Aeroflot told new agency Interfax.
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