Russian low-cost airline market set to significantly grow in coming years

Russia is preparing to open up its aviation market to more low-cost competition, in a potential game changing move that could lead to significantly more local and foreign LCC capacity over the next few years. In its efforts to create an environment able to foster low-cost competition, various changes to aviation legislation are in the pipeline.

Leading Russian carriers have signified their interest in entering the low-cost market while foreign LCCs have stated their interest in operating to, from and within Russia. The upcoming changes to legislation could lead to a significant increase in LCC activity in the country, with forecasts of LCCs gaining up to 35% market share within 10 years.