Aeroflot’s CEO Vitaly Savelyev is considering several options to launch a low-cost subsidiary. One option is to transform existing Donavia into a low-cost operation but it is encumbered with an old fleet that brings with it higher maintenance costs. The preferred option would be to create a brand new low-cost airline that has a Moscow region base and a fleet of 11 new A320 that would connecting cities with at least one million inhabitants.
Should the airline be launched ticket prices for certain routes could be reduced by as much as 30% but only if the airline can benefit from government changes to allowing the sale of non-refundable tickets and charging for baggage fees, as well as hiring foreign pilots.
Several operators have tried and failed to start a low-cost carrier in Russia – SkyExpress, Avianova both failed. Reasons have varied from low demand to a lack of airports in the country. Aeroflot disagrees and it can create a market for “super-commuters”.
Aeroflot mulling low-cost airline
