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Aeroflot Taking Over Domestic Rival

Russia's second-largest passenger airline, Transaero, says it will be taken over by the country's top carrier, Aeroflot.

Transaero said in a statement on September 1 that its "consolidation...into the Aeroflot group" has been approved by a government commission headed by Deputy Prime Minister Igor Shuvalov.

Financial terms were not disclosed.

Transaero has been struggling with debt at a time when Russia's economic problems have buffeted the airline industry.

The company had debts of 67.5 billion rubles ($1 billion) as of June 30, according to its report for the first half of the year.

State-controlled Aeroflot told Russia's Interfax news agency that "Transaero's activities will be restructured and integrated at the operational level."

Based on reporting by Interfax and AP