Aeroflot targets distinctive branding for low-cost arm

St Petersburg
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Aeroflot's management has sketched out a tentative plan for setting up its proposed low-cost arm.

Speaking at an economic forum in St Petersburg, general director Vitaly Saveliev said he sees no point in reformatting one of the Russian group's four subsidiary carriers as a low-cost specialist.

"We've studied foreign experience and decided that it should be a brand new company," he says. "We expect the parliament to change legislation in a way that could help make it competitive. Hopefully, appropriate changes will be adopted before 2014."

Aeroflot has started talks with the Vnukovo airport authority, aiming to negotiate favourable conditions for basing a budget operator there, but will consider alternatives if they appear, says Saveliev.

"It should have distinctive aircraft with a special cabin interior and seat configuration," he adds. "We're looking at the Boeing 737 and Airbus A320 as a possible type to equip it, but at this point are far from placing a particular order."