Analysis Of The Prospects For The Development Of Low-Cost Airlines In The Russian Federation

Low-cost carriers had a significant impact on the air transportation market,but the extent and nature of this effect depends largely on the country and region.The first lowcost air transportation was carried out in the USA,and they proved to be the leading concept for servicing air passengers from a financial and operational point of view.Some key features are common to most low-cost transportation business models.These include: high aircraft load;aircraft fleet,consisting of new aircraft with maximum unification of aircraft in the fleet;a large share of air traffic on domestic air lines;use of secondary airports and so on.It is worth noting that increased competition in the airline industry has forced traditional airlines to accept some of the above characteristics of a low-cost airline in an attempt to survive in this new airline environment.Thus,the business model of low-cost carriers has a significant difference from traditional network airlines,the main thing is to reduce costs for all possible cost items.As for the development of this segment,this type of transportation increases its popularity exclusively abroad.Large foreign low-cost airlines entered the Russian market only from 2012.From 2006 to 2011 an attempt was made to launch the domestic lowcost Avianova and Sky Express,but in 2011 they simultaneously stopped their work due to large losses and not returning on the return on investment.In this regard,this work for the first time collected statistical data from Rosstat,the Ministry of transport and other statistical agencies,studied the main project documents of the industry and related analytical reports,regulatory documents,etc.,by creating economic models,analyzing and evaluating the main indicators related to low-cost aviation operations,obtained key indicators combined with the analysis of Russian cases of failures,found that in Russia there is no deep understanding of the development strategy of the transport market,but it is necessary to take into account the size of the fleet,airport passenger traffic,market demand,route planning,complex costs to ensure efficient operation the reason for the failure of the transport management system transformation.Based on that,the purpose of the thesis is to analyze foreign experience in creating and developing low-cost models,analyze the main problems of low-cost airlines in the Russian Federation,and identify a successful low-cost model for use in the Russian Federation.Based on the application of scientific methods such as statistical,system,logical and comparative analysis,grouping,analogy,chapter 3 includes a study case of two low-cost airlines: Avianova and Sky Express.The experience of these companies,the main problems and causes of airline bankruptcy are identified and discussed in Chapter 3.These problems can be divided into 3 groups: economic,management and state regulations.Based on the analysis and the Russian experience of low-cost airlines,we can see that pricing(economic group)is one of the important key problems in choosing the low-cost model in Russia.Based on this information,in Chapter 4,we made economic calculations of the ticket cost for the Moscow-Saint Petersburg-Moscow route to compare the cost differences between traditional and low-cost model.Chapters 5 and 6identify ways to improve management decisions and recommendations for state regulation of low-cost airlines.The combination of economic factors,correct management decisions and political(legislative)measures to support the low-cost market,considered in this work,can find actual application in the low-budget model in the Russian Federation.