AirBridge, part of Russia's fourth largest airline group, is close to a deal with Hungary's privatisation authority for the purchase of Malev, Hungary's state-owned airline, The Financial Times report.
AirBridge became the only remaining bidder this week after LAL Investiciju Valdymas, Lithuania's leading carrier, was disqualified for failing to provide sufficient financial guarantees, according to Hungarian officials.
A source close to AirUnion said the two sides had worked out the basic outline for an agreement but were yet to finalise a contract. If agreed, the sale would require government approval.
Hungary is trying for the seventh time to sell the troubled airline and is offering a 99.95 per cent stake in Malev, which lost Ft1.3bn (€5m) last year and has debts of Ft36bn ($180m, €140m, £90m).