Loading

Pobeda: an indispensable part of the Aeroflot Group, even as the LCC's growth slows

Pobeda has firmly established itself in its first two and a half years. The Aeroflot subsidiary, Russia's only low cost airline, has a 5% share of seats in the domestic market, which accounts for 85% of its capacity. Domestic routes will remain its main focus, but it also has a burgeoning international network of 12 routes and will launch Moscow Vnukovo-Karlsruhe/Baden Baden in Oct-2017.

Pobeda enjoyed rapid growth in passenger numbers from its launch in Dec-2014 until late in 2016, accompanied also by strong load factor gains. In 2017 its capacity is falling slightly, but its passenger count has continued to grow, albeit at much slower rates than last year. Nevertheless, it still holds high growth ambitions beyond 2017.

Russia's geography, together with Pobeda's low fares and the lack of LCC competition in the domestic market, often mean that it is the only convenient means of travel between cities. These conditions, together with a focus on a simple product and low costs, helped to make Pobeda profitable in 2016 (only its second full year of existence) and it expects another positive result in 2017.

In its short life, Pobeda appears to have become an indispensable part of the Aeroflot Group.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,130 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.