1. Busines news

S7 Group may create a new low-cost airline – Rambler / finance

The S7 Group is discussing the possibility of creating a new low-cost airline in Russia, the Vedomosti newspaper reports, citing three sources in the aviation industry.
S7 Group is thinking about creating a low-cost airline

According to them, a working group with the participation of representatives of S7 has already been created in the Ministry of Transport to discuss this initiative. One of the sources of the newspaper specified that “the general director of the group is dealing with the issue. [S7] Anton Eremin. ” three months.

The information about the start of working out the issues of creating a new low-cost airline for S7 was confirmed to the newspaper by the company itself.

“We are carefully studying the current market situation and conducting a comprehensive assessment of the feasibility of launching a new low-cost airline. At present, the S7 Group is negotiating aircraft leasing between Airbus and Boeing,” the publication quotes a representative of the S7 Group.

S7 added that the project will be implemented “only in case of high business efficiency of the new airline”, and also stressed that they will not make changes to the business model of S7 Airlines and transfer it to the segment of low-cost flights.

On January 19, the head of the Russian Ministry of Transport Vitaly Savelyev told TASS that the airlines will discuss in the Federal Air Transport Agency the possibility of creating low-cost airlines on the basis of existing airlines or within the group, as subsidiary carriers. He noted that the creation of two low-cost airlines in Russia is a completely realistic task, while a second low-cost airline in Russia may appear in 2022. According to Savelyev, the presence of three low-cost airlines in Russia will fully cover the demand for low-cost transportation in Russia.

On February 9, the head of the Federal Air Transport Agency Alexander Neradko said that Russian airlines have at the moment abandoned the idea of ​​creating low-cost airlines within their aviation groups and as subsidiaries. At the same time, he noted that potential investors may be interested in the creation of low-cost airlines after the restoration of the volume of passenger traffic to the pre-crisis level.

Comments to: S7 Group may create a new low-cost airline – Rambler / finance

Your email address will not be published. Required fields are marked *