Russian low-cost carrier Avianova is changing the configuration of all its aircraft and is reducing the number of seats from 180 to 159 to comply with the modified customs regime for imported aircraft.
Avianova’s five A320s are currently configured in single class with 180 seats, however this layout is subject to a 20% customs duty rather than 18% for a double class, 159 seat layout.
Andrew Pyne, the CEO of Avianova, said: “The unintended consequence of Russia’s recent changes to the customs regime is to favour high fare, full service, carriers over low cost airlines: if you import Boeing 737s or Airbus 320s in a dual class configuration you avoid Duty and VAT - if you import as we do in a single class configuration in order to reduce costs and hence fares, you are obliged to pay a punitively high amount of Duty and VAT. This approach creates further inequality in the local air transport market and undermines the Government’s stated policy of reducing Russia’s high air fares. We hope for further changes to create a level playing field for all airlines to compete on but in the interim we have no option, sadly but to reduce seat numbers on our aircraft if we are to remain competitive.”