Study: the cost of tickets in Russia is several times lower than the world average

The price of tickets in Russia is much lower than the world average. Such conclusion contains in research of Infomost consulting group, published in the magazine “air transport observer”. During the preparation of the experts compared Russian, European and American markets. It turned out that the cost of tickets on flights of Russian airlines, including those working in the premium segment of “Aeroflot”, two to three times lower than the world average. Moreover, tariffs of the Russian classic airlines is lower than the foreign low-cost airlines, analysts said.

Photo: aeroflot.ru

The study says that the minimum available rates of Russian airlines in the fall of 2017 were in the range of 5.5-6 cents per passenger-kilometer without. At the same time on selected routes minimal rates reached values of 3.5 cents per passenger-kilometer without. For comparison, a typical world average unit cost of transportation for the classical network carriers is 12-14 cents per passenger-kilometer without or $110-120 per thousand kilometers, which is almost 3 times more than in Russia. According to the study, the most expensive tickets the American airlines in September 2017, the minimum rates of the classical and low-cost airlines reached $150-200 per thousand miles for medium-haul destinations and $220-240 for flights over short distances. The results of the study, including a comparative analysis on the markets of Russia, EU and US, confirmed the data of major search engines.

At such low prices on the Russian market imminent bankruptcy of airlines, experts believe. When this probability of bankruptcy is higher in a situation where continuing pressures on airlines, but are not governed by the price of airport, air navigation services, fuel and other services, which is happening now in Russia. A striking example – the Russian airline “VIM-Avia”, which are unable to pay for airport services, fuel, to pay the salaries with the staff.

Analysts see two ways of stabilizing the industry: airlines to reconsider their pricing policies and to raise tariffs or to operate at existing fares, but the strongest will survive carriers of the TOP 10. However, after the reduction of airline competition will inevitably raise prices.

“Only economically justified cost of the tickets allows you to balance the air transport system and to ensure its sustainable long-term development. The domestic aviation industry is under unprecedented pressure from the state, we constantly hear calls to reduce the cost of tickets. Although no one encourages suppliers of aviation fuel to reduce the cost of aviation kerosene, bankers to reduce interest rates, automakers and dealers to reduce the selling price of the car. The pressure on airlines, forcing carriers to fly below cost, leading them to bankruptcy. The story of VIM-Avia is a good example of how the pressure of various officials, governors, deputies leads to an obvious finale. In that case, if the level of tariffs continues, the inevitable further airline bankruptcies, an acceleration of market consolidation and a drastic increase in tariffs in the future because of the monopolization of certain segments of the market a limited number of the remaining participants,” – said the head of the Consulting Infomost Boris Rybak.

Leave a Reply

Your email address will not be published. Required fields are marked *