28-Apr-2010 10:50 AM

Aeroflot may launch LCC after acquiring Russian Technologies' Rosavia

Aeroflot CEO, Vitaly Savelyev, stated the carrier may launch a LCC after completing the acquisition of Russian TechnologiesRosavia unit (Bloomberg, 27-Apr-2010). Aeroflot will operate Rosavia’s six regional airlines - GTK Rossiya, Kavminvodyavia (KMV), Orenburg Airlines (Orenair), Saratov Airlines (SarAvia), Sakhalin Airways (SAT) and Vladivostok Airlines (Vladavia) - separately from its own “premium” brand, once it has taken control of the group. The the transaction will increase Aeroflot's passenger traffic by 7 million passengers and its fleet by 120 aircraft. Mr Savelyev added that consolidation is required in the Russian aviation industry, with approximately 60 operators serving 45 million passengers. The carrier added that it expects passenger numbers to almost double in 2011 to 20 million after acquiring the regional airlines.

Aeroflot: “We are examining the possibility of transforming the assets of one of the carriers into a low-cost carrier. Aeroflot is a name to be given only to a company which has reached the premium class,” Vitaly Savelyev, CEO. Source: Bloomberg, 27-Apr-2010.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More