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Mon, Oct 14, 2013

Aeroflot Launches Low-Cost Carrier

Dobrolet Will Likely Begin Flying In Spring Of Next Year

Aeroflot Group now includes a budget airline: "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- 737-800NGs in one class configuration. The low-cost carrier will likely start operating in spring of 2014, and in the initial stage the airline will fly to the most popular destinations in the European part of Russia.

Doborlet projects transportation costs as much as 40 percent below "traditional" carriers 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; and the possibility to book and sell additional services online at the company's web site.

JSC "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.

"A low-cost carrier in Russia will not fly unless we harmonize our legislation with the existing norms of the global industry, such as non-refundable tickets, meals on board for a fee, baggage fees, the ability to hire pilots - residents of foreign countries, primarily to reduce the shortage of aircraft captains," - said Aeroflot CEO Vitaly Saveliev. - We expect the appropriate legislative decisions to be taken by the end of this year. By doing so, the state will contribute greatly to the launch of the project of such huge importance for Russia."

FMI: www.aeroflot.com/cms/en

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