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OligarchWatch: Russian Billionaire Roman Abramovich to Buy Italian Airline

Posted on: Thursday, 25 October 2007, 00:00 CDT

Russian businessman Roman Abramovich, the owner of Chelsea football club and the governor of Chukotka province, plans to buy a controlling stake in a private all-cargo Italian airline Ocean Airlines for approximately 300 million euro, according to a source close to the negotiation.

After RIA Novosti, a state-owned Russian news agency, reported the story, Mr. Abramovich's spokesperson denied the existence of negotiations between the Russian businessman and Ocean Airlines. However, aviation industry experts explain that it is only logical for Mr. Abramovich and his company to try to avoid publicity before the deal is closed. They add that the timing for purchasing the all-cargo airline is right -- the international cargo business between Europe and Asia is growing at a robust pace.

Ocean Airlines, established in 2003, is an all-cargo airline whose headquarters are in the Brescia Montichiari Airport (Italy). The airline's fleet is composed of Boeing 747 all-cargo aircrafts. It mostly provides cargo services to destinations in Asia and Europe. Ocean Airlines is said to be planning an IPO in the UK, Mr. Abramovich's current home country.

Millhouse Capital, an investment firm controlled by Roman Abramovich, holds stakes in many businesses in Russia and around the world, but does not yet have any interest in the transportation industry. However, Mr. Abramovich is not a novice in the industry: he owns a private Boeing 767 jet called "The Bandit" and, according to The Times, is buying the new A380, the largest passenger aircraft in the world. When used by commercial airlines, the A380 is capable of accomodating up to 800 economy-class passengers.

Source: Business Wire

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