August 24, 2014 / 11:30 AM / 3 years ago

Russia's Aeroflot to create new low-cost airliner - RIA

MOSCOW, Aug 24 (Reuters) - State-controlled Russian airline Aeroflot will create a new low-cost subsidiary to replace sanctions-hit Dobrolyot, RIA news agency reported on Sunday, citing Aeroflot chief executive Vitaly Savelyev.

Aeroflot-run Dobrolyot suspended all flights in early August after its lease agreement for Boeing aircraft was cancelled under European Union sanctions because it flies to Crimea, which Russia annexed from Ukraine in March. (Reporting by Polina Devitt; Editing by Christian Lowe)

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