Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict
Russian flag carrier Aeroflot is considering an emergency share issue with the aim of raising up to RUR185.2bn ($3bn), reported Reuters.
The move follows sanctions and airspace bans on Russia in the wake of its military attack on Ukraine.
During the company’s extraordinary general meeting (EGM), the shareholders gave their approval to the issuance of up to 5.42 billion new shares, at RUR34.29 apiece, through an open subscription.
The related technical amendment to the company’s charter, to raise the number of authorised shares from 616 million to 5.42 billion, was also approved.
Aeroflot stated that this decision was taken with the aim of strengthening its financial position.
In another development, the carrier announced plans to purchase 300 aircraft from United Aircraft Corporation, which is majority-owned by Russia’s state aerospace and defence entity Rostec, reported the Vedemosti business newspaper.
According to sources familiar with the matter, the airline intends to purchase the Irkut MS-21 medium-range plane, which has a capacity for more than 200 passengers. It is expected to start operations later in the year.
Aeroflot also plans to buy Russia’s main domestic-made passenger jet, Sukhoi Superjet 100. It can carry just under 100 passengers.
Additionally, Aeroflot is expected to order a small number of Tupolev Tu-214 planes, which can accommodate around 200 passengers.