Aeroflot’s CEO Vitaly Savelyev is considering several options to launch a low-cost subsidiary. One option is to transform existing Donavia into a low-cost operation but it is encumbered with an old fleet that brings with it higher maintenance costs. The preferred option would be to create a brand new low-cost airline that has a Moscow region base and a fleet of 11 new A320 that would connecting cities with at least one million inhabitants. Should the airline be launched ticket prices for certain routes could be reduced by as much as 30% but only if the airline can benefit from

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