Aeroflot-Transaero deal, bigger but not better: analysts

Moscow

BY acquiring its struggling rival Transaero, Russia's largest airline Aeroflot is likely to find itself in a tight spot with an additional debt burden and a fleet of ageing aircraft, analysts said.

State-controlled Aeroflot announced last week its purchase of 75 per cent plus one of Transaero's shares for the symbolic price of one rouble, citing the privately-held airline's "extremely difficult financial position". The Russian government had backed consolidation of the two airlines, which was expected to begin on Monday.