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Transaero on Brink of Collapse as Aeroflot Walks Out on Merger

  • Russian government says not certain to offer bailout
  • Debts total almost $4 billion, creditor VTB Group says
Transaero Aircraft

Transaero Aircraft

Photographer: Andrey Rudakov/Bloomberg
Updated on

Transaero Airlines, Russia’s second-largest carrier, is on the verge of collapse after a state-orchestrated combination with Aeroflot PJSC fell through, prompting the government to halt ticket sales.

Shares of Transaero dropped the most on record Friday after Russian Transport Minister Maxim Sokolov told reporters late Thursday that creditors hadn’t agreed on a restructuring plan and that the company was unable to meet financial obligations and might not get a bailout.