New Russian state airline is named Rosavia

A NEW airline, being created by the Moscow city government and state-run Russian Technologies, will be called Rosavia, according to a Moscow Times report.
 Designed to serve as an alternative to Aeroflot, the airline, which earlier functioned under the working name Russian Airlines, will incorporate other regional carriers, including  regional airlines such as AiRUnion, Krasair and Samara.
The political infighting for control of Russia’s booming aviation sector has been fierce. The Moscow government has been attempting to wrest the dominance of Aeroflot away for some time and this latest move is all part of the power play.
Moscow mayor Yuriy Luzhkov and Russian Technologies head Sergei Chemezov, have sent a letter to the Federal Anti-Monopoly Service requesting that Aeroflot be stripped of its overflight royalties.
Aeroflot receives these royalties from international airlines using Russian airspace.
Aeroflot Cargo has also scaled back its freighter expansion plans. It has now grounded its B737 freighters, stating that “they are more suited for express traffic than general cargo”.
In addition it has ditched plans to acquire up to six new-build Il-96 freighters.