OREANDA-NEWS. June 28, 2007.  After a thorough review of all the elements of the privatization process for Alitalia, Aeroflot has decided with regret to withdraw and is not in the position to present a binding offer under the set terms and conditions. Aeroflot believes that acquiring Alitalia under the current conditions would not be the right decision for it to take.

The following elements have supported Aeroflot’s decision to withdraw:
- Aeroflot and its advisors have not had access to critical information with respect to the commercial and operational aspects of Alitalia’s business to confidently formulate a well supported business proposal to successfully restructure Alitalia.
- The conditions and requirements outlined for the privatization process would significantly limit the ability of Aeroflot to implement what Aeroflot believes to be the necessary measures to re-launch Alitalia.

Aeroflot express thanks to its partner UniCredit bank for joint efforts in preparation of the bid proposals as well as consultants and banks that helped to prepare its initial  business plan for Alitalia.
Aeroflot is committed to expand its operations in Europe by increasing it operational activities as well as acquiring strategic assets.

JSC “Aeroflot – Russian Airlines” (AFLT) is unquestionable leader of the civil aviation of Russia, and actually is the national air carrier. Being the largest airline in the country, it carries more than 7 million passengers a year, and together with its affiliated airlines – about 9 million combined that makes 23% of the total air passengers traffic of Russia. Having a fleet of 81 aircraft Aeroflot operates its own flights to 93 points of destination in 47 countries (302 a day overall). It controls 51% of the Russian  international scheduled service market and about 12% of domestic air traffic. In 2006 it had net profit of $258,1 mln.