Russian national airline plans major expansion

RUSSIA / FSU POLITICS - In Brief 15 Jul 2020 by Alex Teddy
On July 13 Russian business newspaper RBK reported that Aeroflot intends to increase passenger numbers by 30 million. The business plan goes up to 2028. The airline plans to slash prices by 30% thereby cutting profit margins to the bone. Due to coronavirus there is less disposable income than before.Aeroflot is the parent company of Pobeda which is a lost cost airline. Pobeda flies mainly in Russia but the aim is for it to fly to more international destinations while Aeroflot will cut those same routes. In 2019 Pobeda increased passenger numbers 43%. Pobeda's fleet is due to go from 30 to 170. The goal is to increase passenger numbers by 600%. This is surely overoptimistic. Pobeda might pick up some routes from EU low costers which will go bust due to coronavirus. Pobeda pays people less due to the lower cost of living in Russia.Aeroflot will stick to long haul and emphasize its status as a high quality airline. It is the national flag carrier after all.

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