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A low-cost airline is opened in Russia

A low-cost airline is opened in Russia

Russian airline “Aeroflot” was able to register the low-budget subsidiary “Dobrolet”.

Since May 2014, the company's aircrafts will fly in the Russian cities of one million, and European market entry is scheduled for the next two or three years.

It is predicted that the tickets of “Dobrolet” will be 30%–40% cheaper than similar tickets of “Aeroflot”. It is still unknown where the airline will be based.

According to the newspaper “Izvestia” the first year “Dobrolet” will carry about one million passengers, and by the fifth year the flow will reach ten million people per year due to the passengers will switch from the railways as well as the other airlines including those of the “Aeroflot”. According to the publication the average airline ticket will cost more than second-class slipping seats, but cheaper than compartment seats.

The decrease of the ticket cost will be achieved by the maximum cabin load – up to 170 people, the baggage fees, the meal fees, and the reduction of general cleanings to one per day.

“Aeroflot” will invest about one hundred million dollars in this creation. It is planned that in two years' period the investment will pay off, and by the fifth year of operation the company “Dobrolet” will achieve the break-even point, and its capitalization will reach the 1.4 billion (market capitalization of the “Aeroflot” is about $ 1.9 billion).

Monday, October 14, 2013