Aeroflot Says New Low-Cost Arm Needs Free Hand to Repel Ryanair - Bloomberg

Aeroflot Says New Low-Cost Arm Needs Free Hand to Repel Ryanair - Bloomberg:



"OAO Aeroflot said Russia must further liberalize its air-carriage rules for the airline to succeed with a plan to build a 40-plane low-cost arm that can repel European discount carriers led by Ryanair Holdings Plc. (RYA)



The Dobrolet division, which began flying a month ago and has two Boeing Co. (BA) 737-800s in service with 10 more on order, won’t purchase more jets until restrictions are eased, Aeroflot Chief Executive Officer Vitaly Savelyev said today in London. 




The government has already scrapped rules to allow the sale of non-refundable tickets and recruitment of foreign pilots, while easing the tax burden on the purchase of larger single-aisle models, Savelyev said in London. The elimination of a free-food provision is pending, and Aeroflot is pushing for a rule allowing Dobrolet to charge for bags, he said."



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