Another Low-Cost Airline to Emerge In Russia

Currently established A1 low-cost airline is looking for a base airport in the Moscow Region. The respective negotiations have been carried out with Vnukovo and Domodedovo airports.

According to a source with A1, it will focus on domestic flights and is considering the acquisition of some regional airline, but no final choice has been made yet.

Private foreign investors are expected to own 49 percent in A1. More likely than not, Texas Pacific Group’s co-owner David Bolderman will have 35 percent, while co-owners of Indigo Partners (that took part in creation of Tiger low-cost airline in Singapore and Wizz Air in Hungary) –William Frank and Jeremy Wilson- will get less than 14 percent.

The key intrigue, however, is involvement of Michael O’Leary, co-owner and founder of Ryanair, who will consult A1 in business development issues. To begin with, A1 has sealed an agreement with Indigo Partners for buying a stake in Wizz Air, which operates six A320s.

A1 won’t be the first low-cost airline in the country, as the real pioneer is Sky Express that emerged in March 2006. This airline covers European part of Russia, maintaining moderate prices on frequency of flights, rational flight pattern, Internet/call-center sale of tickets and no free food offered to the passengers during the flights.