Low Cost Airline Expansion in Russia Attracts Increasing Tourist Numbers
Russian tourism has enjoyed steady growth in both local and international arrivals since the recent world economic slowdown
. Russia's rich cultural heritage, its diverse culture and ethnic history attracts travelers year after year. Today, UNESCO has listed 23 World Heritage Sites in Russia and there are many more in UNESCO's pipeline. Russia offers a lot of activities for everyone, from beach holidays to hunting in Siberia. Despite these interesting destinations, overall tourism in the country has dropped sharply by 50% in the last decade. One reason, is the price. The average cheap trip to Russia costs around $1,500 while one can get a 5-star all-inclusive trip to Egypt or Turkey for the same price.Today, backed by a $10.1 budget, the Russian government is eyeing an increase in the number of foreign tourist arrivals from 2 million to 15 million. This ambitious plan is buoyed by high expectations that the 2014 Sochi Winter Olympics will bring in a large number of tourists. The industry has also seen several steps by the government in recent years to stimulate the once ailing tourism industry. Among them is the expansion of low cost airlines in the country.
A couple of years ago, the Russian government came up with a plan to merge Aeroflot, a leading Russian airline, with six other state owned airlines.
Air Berlin also came up with a series of expansion plans and increased its affiliations. First off was its expansion in its code sharing arrangements with Finnair, American Airlines and Russia's S7 Airlines. The agreement with Finnair and AA is expected to be available by winter of 2010, Meanwhile, the S7 Airlines code share arrangement includes flights thru Moscow to Irkutsk, Rostov and Perm. Earlier this year, Air Berlin also increased its share in NIKI Luftfahrt GmbH to 49.9%, from its previous 24$. The airline also announced its plan to join the Oneworld airline alliance and is expected to fly as part of Oneworld by 2012.
Avianova is also fast gaining ground as a low cost carrier. The airline reported servicing close to 900,000 passengers by its 1st year of operation and has, since then expanded its base and added Pulkovo Airport in St Petersburg. The airline recently announced its plan to establish a 3rd base in Kaliningrad by winter of 2010.
Sky Express Airlines, now on its 4th year in operation is now operating a fleet of 6 Boeing 737-300. The airline operates primarily from Vnukovo airport but has plans to expand to other major Russian cities. Sky Express is eyeing to serve around 5 Million passengers annually.
Low Cost Airline Expansion in Russia Attracts Increasing Tourist Numbers
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