Ministry backs creation of new low-cost airline in Russia

VLADIVOSTOK, Sep 12 (PRIME) -- Russia’s Transport Ministry supports creation of a new low-cost airline on various routes, first of all on domestic routes, Transport Minister Yevgeny Ditrikh told reporters Wednesday on the sidelines of the Eastern Economic Forum.

“Of course, it (the ministry) supports. Of course. On all possible (directions), first of all on domestic routes. Our domestic routes are actively developing nowadays, and additional transport capacities are required,” he said.

Deputy Prime Minister Maxim Akimov told PRIME earlier he believes it is reasonable to create a new low-cost airline to solve the problem of availability of air transport services in Russia.

Pobeda, a unit of national flagship air carrier Aeroflot, is currently the only low-cost airline in Russia.

Akimov also said that the government plans to create an economic model of the air industry to prevent bankruptcy of airlines and raise investment attractiveness of the sector.

“We need an economic model which would not lead to bankruptcies of companies and non-fulfillment of obligations to passengers. The business should be attractive. And through a leasing model, lowering the cost of infrastructure, and with digital technologies we should make investments in the air industry and purchase of planes attractive,” Akimov said.

He also said the government plans to create hubs in Siberia and the Far East to solve the problem of availability of air transportation services.

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