The value of Russia’s LCC Pobeda is now US$800 million, Aeroflot boss claims

LCC Pobeda Pobeda Airlines which has grown the most among those in the nation’s top-five listing after carrying 943,000 passengers, 36 per cent more year-on-year, in October, lifting it to third place in the league of Russia’s largest airlines (Pobeda)

Vitaly Saveliev, head of the Aeroflot Group, speaking at Russia’s Transport Week 2019 forum today, revealed the value of the country’s only low-cost carrier Pobeda Airlines.

“Pobeda is our rather successful project. Despite the fact that we invested about US$50 million in it, this was [always] our business plan. This year, in December, we will celebrate the fifth anniversary of Pobeda and it has already reached a value of US$800 million, according to an assessment of the market,” Saveliev proclaimed.

The successful Russian budget airline, which was created in 2014, made its first flight on December 1 of the same year. In the summer of 2019, Igor Artemyev, the head of the Federal Antimonopoly Service of Russia, suggested that the Russian government should privatise Pobeda Airlines which has grown the most among those in the nation’s top-five listing after carrying 943,000 passengers, 36 per cent more year-on-year, in October, lifting it to third place in the league of Russia’s largest airlines.

According to its latest 2018 five-year strategy for the period up to 2023 – dubbed ‘100 by 100’ by Aeroflot – Russia’s dominant airline group is targeting the handling of 100 million passengers by its 100th anniversary, but it is LCC Pobeda that is set to deliver the biggest boost, with a breath-taking anticipated 428 per cent improvement over the five years, the equivalent of a 34 per cent average annual growth rate. By 2023, the budget airline that caters for cost-conscious travellers, is expected to carry some 25-30 million annually, compared to 7.2 million served in 2018.

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