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Aeroflot OAO Establishes New Low-Cost Airline


Wednesday, 9 Oct 2013 08:00pm EDT 

Aeroflot OAO (Aeroflot) announced that it has established a budget airline named Dobrolet. Originally, it was the name of the joint-stock company established in 1923, a predecessor of today’s Aeroflot. Dobrolet will be based in the Moscow region. The fleet of the new airline will consist of Boeing- 737-800NG’s in one class configuration. It is assumed that the low-cost carrier will start operating in spring of 2014. At the initial stage the airline will fly to the destinations in the European part of Russia. The reduction of transportation cost up to 40 % compared to the traditional carriers will be achieved in several ways. Among them are: the increase of the number of seats in the cabin of an aircraft by reducing the pitch between the seats and fixed backrests; only direct ticket sales; an additional payment for a comfort seat, checked baggage, priority boarding, and meals on board; a possibility to book and sell additional services online. Aeroflot owns 100% of shares in the new company. An estimated investment in the project will be around $100 million over the first two years. The airline will operate 8 aircraft in the year of the launch; the annual fleet growth is planned as an average of 8 aircraft per year. Vladimir Gorbunov is appointed the Director General of Dobrolet. 

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