The Russian airlines Nordavia and Red Wings confirmed their merger. While the process is ongoing the two companies will operate under their own brands and after the merger the holding company will get a new identity. The name Nordavia will be replaced by SmartAvia and the brand colors – blue, orange and grey – will be slightly changed.
At present Nordavia is owned by Sergey Kuznetcov, while Red Wings is operated by the Ilyushin Finance leasing company. The distribution of the shares in the new airline are to be announced. The new airline would also probably inherit the $201 million debt of Nordavia.
The new holding company is expected to have an increased passenger turnover and reach the 10th place by number of passengers flown. At present Red Wings stands at the 13th place in Russia, while Nordavia occupies the 17th. Part of the increase is expected to come from the fact that the new airline will overtake part of the passenger market of the recently suspended VIM-Avia.
The new airline is expected to focus on domestic flights as it will use medium-haul MC-21 planes. Besides, Red Wings signed an agreement at MAKS Air Show in Moscow this summer for the lease of 16 MC-21-300s.