Debevoise & Plimpton

Will Russia be getting a real budget airline in 2014?

There has been a lot of speculation recently in the Russian airline industry about future prospects for budget carriers. Recent examples of unsuccessful ‘low-cost’ start-ups demonstrate that one of the principal reasons for the underdevelopment of this segment in Russia is insufficient legislation.

Both airlines and the Ministry of Transport have recently put forward proposals aimed at creating true low-cost carriers in Russia, which, if implemented, could reduce the cost of airline tickets by about 30 per cent.

This briefing provides an overview of some of the most important initiatives…

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