Russian Government Backs Transaero Airlines, Guarantees Loan

By Juliet Van Wagenen | December 30, 2014
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Boeing 747-346, Transaero Airlines
Transaero Airlines Boeing 747-346. Photo: WikiCommons

[Avionics Today 12-30-2014] The Russian government has pledged its financial support to Russian airline Transaero after the airline turned to the federal government for help, the Russian news source TASS reported. Without the financial backing, debt may have forced the airline to ground all jets before the New Year.

According to the news agency, the Russian Prime Minister Dmitry Medvedev signed a resolution for a three-year, $166-million loan guaranteed to Transaero through VTB Bank. In exchange, the airline will reduce fares by 5 to 7 percent on domestic routes it serves exclusively in 2015 as well as freeze domestic fares.

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