The creation of a second low-cost airline in Russia may begin in 2022. The head of the Ministry of Transport of the Russian Federation, Vitaly Savelyev, announced such a possibility on Friday, April 23rd.
“The task of the Ministry of Transport is to create one more low-cost airline somewhere in central Russia. We are currently in active negotiations. And I hope that in 2022 we will start creating, because such a carrier will be in great demand, ”Saveliev told reporters.
The Minister noted that the only low-cost carrier in Russia, Pobeda Airlines, managed to get a net profit of 1.4 billion rubles in the 2020 pandemic year without receiving a penny of subsidies either from the parent company, Aeroflot, or from government.
Earlier on Friday, Izvestia’s sources at Aeroflot and the government said they were considering the sale of 25-75% of Pobeda through an initial public offering (IPO).
However, Aeroflot and Pobeda said that the sale of the low-cost airline has not yet been discussed due to the fact that the carrier is a “strategic asset” of the group and “a key element of the long-term development strategy.”
We are talking about the Aeroflot strategy adopted last summer. It focuses on the development of Pobeda, which by 2028 should increase the number of passengers carried to 55-65 million people and become the largest airline in Russia. The parent company, as part of the strategy in 2021–2023, will transfer all its Boeing 738 aircraft – 50 pieces to the low-cost airline’s fleet.
Pobeda Airlines was established by Aeroflot in 2014. In 2018, the new carrier became the world leader in passenger traffic growth. The uniqueness of the low-cost airline is that the client can independently control the final price of the flight, choosing only the services he needs.
In July 2020, Pobeda was recognized as the only airline in Europe to increase passenger traffic, said Center for Aviation (CAPA), one of the world’s leading analytical centers. In December, the reputable American industry magazine Aviation Week announced that the carrier was among the five fastest growing airlines in the world.