Russia's Two Largest Banks Move Ahead With Plans To Create Regional Airline

Russia's two largest lenders, VTB and Sberbank, plan to launch their own regional airline after the third partner, Aeroflot flag carrier, pulled out, the VTB chief executive told Sputnik on Tuesday.

RIYADH (UrduPoint News / Sputnik - 23rd October, 2018) Russia's two largest lenders, VTB and Sberbank, plan to launch their own regional airline after the third partner, Aeroflot flag carrier, pulled out, the VTB chief executive told Sputnik on Tuesday.

A source with the knowledge of the matter told Sputnik earlier in October that the banks were working on a business plan to launch an airline by the end of this year.

"We have hired consultants together with Sberbank and are looking for project operators. Aeroflot has dropped out... We are searching for an operator among the existing carriers but may create one from scratch," Andrei Kostin said.

Kostin, who is in Saudi Arabia for a major investment conference, said the airline project - estimated at $1 billion in investment funds - was "not an easy one." He added the banks had not sought government support or partnership of other lenders.