In 2013, Aeroflot Group led the creation of two new carriers to develop new market segments as part of the Group’s multi-brand platform. Aurora will be the main carrier in the Far East region of Russia, with potential for a significant role in the future across the whole Asia-Pacific region. Dobrolet will lead the emerging low-cost air transport segment in Russia.
Aurora, a new airline within Aeroflot Group, was unveiled in November 2013. The company was established on the initiative of the Russian government by combining two Far East carriers, JSC SAT Airlines and JSC Vladivostok Air, which have been part of Aeroflot Group since 2011.
The mission of Aurora is to promote the socio-economic development of the Russian Far East, and to increase mobility. The company will be the leading domestic carrier in the region and in future plans to strengthen its market presence throughout the Asia-Pacific region.
The Aurora fleet will consist of modern Boeing 737 and Airbus A319 aircraft and will also include modern turboprop aircraft with
Aurora’s route network has been designed to take account of the transport needs of residents in all the constituent regions of the Far Eastern Federal District, and the airline’s business plan calls for a rapid expansion of operations. The number of flights is expected to increase from 172 in 2013 to 534 in 2018, and the number of destinations from 30 to 128. Annual carrying volumes should rise to 2.4 million passengers in the same period.
JSC Aeroflot will maintain at least a 51% interest in Aurora. A 49% stake in the company was transferred from JSC Aeroflot to the ownership of Sakhalin Region after the reporting date in January 2014 for subsequent gradual transfer to the administrations of other regions in the Far Eastern Federal District.
The project will be developed in close association with regional administrations in the Far East, and the agreement signed between Aeroflot and Sakhalin Region on joint ownership of Aurora Airline is an important step in this direction. The proactive policy of the Russian government to support investments and economic development in the Russian Far East will stimulate growth of passenger traffic in the region.
Dobrolet LLC was created as part of Aeroflot Group in October 2013. The company will develop using the classic low-cost carrier business model, applying global best practices that have already taken shape in the industry. Dobrolet will make air transportation available to larger sections of the general public and will help to attract new passengers.
The new low-cost carrier has been named after the predecessor of modern-day Aeroflot: Dobrolet was the name of the first Russian civilian air transport company, created in the 1920s.
The Dobrolet fleet will include narrow-body Boeing
In an initial period the airline will operate flights on the most popular routes in the European part of Russia. There are plans to incorporate international destinations in three years’ time.
JSC Aeroflot owns 100% of shares in the new company.
Aeroflot plans to invest about USD 100 million in Dobrolet during the first two years. Carrying costs will be reduced in comparison with traditional air carriers by the following means:
- High utilisation and high fuel efficiency using a modern aircraft fleet.
- Economies of scale in fuel purchases.
- Increased seat numbers by reducing the distance between seats with non-reclining backs.
- Use of the airline website as the main sales channel.
- Additional charges for a choice of seat, superior comfort, checked-in baggage, priority boarding and in-flight meals.
Operational launch and full functioning of the new low-cost airline is contingent on a number of amendments to Russian legislation on air travel. It is expected that Dobrolet will make its first flights in mid-2014.Top