Russia merges regional airlines

The state will own at least 45% of the new airline

Russian President Vladimir Putin has signed a decree merging five regional airlines into a single company.

More than 400 people were killed in Russian airlines and airports last year and the merger is part of attempts to deal with their poor safety record.

Domodedovo Airlines, KrasAir, Omskavia, Samara and Sibaviatrans will merge to form OAO AirUnion, which will be at least 45% state-owned.

The new airline will be protected from foreign takeovers.

The merger will create the largest domestic rival for the state-controlled flag-carrier Aeroflot.

First Deputy Prime Minister Sergei Ivanov called in October for more consolidation in the airline sector.

There has been particular concern about the safety record of regional airlines, which have lacked the money to overhaul their fleets since the collapse of the Soviet Union.