Challenges and Opportunities of the Development of Russian Low-Cost Carriers Considering the Liberalization of the Air Transport Market in EAEU

Student: Kostiulin Maksim

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Master)

Year of Graduation: 2018

This paper is devoted to the research of the existing impediments to the development of Russian low-cost carriers market, as well as prospects of its development in the context of forthcoming liberalization of passenger air traffic in EAEU. In order to estimate the EAEU air space liberalization impact on Russian LCCs there was built an econometric model that estimated traffic stimulation effect of LCC entry, forecasted of air traffic between Russian and rest countries of EAEU till 2026, and estimated market share of Russian low-cost carriers in the internal air traffic market of EAEU if EAEU Open Skies comes into effect in 2025.

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