MARKETING ASPECTS OF DISCOUNT AIRLINES IN THE RUSSIAN MARKET

Author Name(s): Lilijana A. Sosunova, Dana V. Chernova, Lyubov N. Semerkova, Irina A. Toymentseva, *Kristina P. Syrova
Author Email: fannita55@yandex.ru

Abstract

The urgency of the research is caused by the changes that have taken place in the Russian civil aviation industry, the strategy of which is aimed at consolidating the industry, and as a consequence, at changing the market structure for passenger air travel. To increase the competitiveness of the Russian civil aviation industry, it is necessary to improve production activities and introduce new business models for the Russian market, in particular, the model of discount airlines. The purpose of the article is to analyze and identify the reasons for the failure of business models of Russian discount carriers operating earlier. The leading approach to the study of this problem is the logical-theoretical research method. Using this approach, the authors analyze the failed business plans of previously operating Russian discount air carriers such as Avianova, SkyExpress, Pobeda and the main barriers to the development of the discount airline industry in Russia and the main marketing aspects of discount airlines performance on the Russian market. The materials of this article can be useful for airlines or a group of airlines that seek to develop the share on both the Russian and global markets in the passenger air transportation industry, for example, such enterprises as PJSC Aeroflot and PJSC S7.

Keywords

Airline, Discount Air Carrier, Competition, Competitiveness, Low-Cost Airline, Airline Marketing.

Introduction

Over the past five years, the Russian market of air passenger transport has undergone significant changes. In addition to the quantitative growth of passenger traffic in the industry, significant qualitative changes have taken place. Consolidation in the industry, changes in airport management, increased state attention to the development of domestic tourism, as well as the withdrawal of Transaero from the market, that was one the main player in the airline industry, have become key trends in the Russian aviation market over the past five years. To increase competitiveness, Russian airlines need to seek and apply both new methods of marketing communications, new approaches in organizing the logistics service, and introduce new business models in general. “Discount air carrier”, as one of the youngest management models of air travel, is rapidly increasing its share in the markets of Europe and the US, but it is hard to get accustomed to in the Russian Federation. The goal of this research is the insolvency and the collapse of the discount airline model in the Russian market on the basis of previous experience of Russian carriers.

Conclusion

Summarizing, it should be noted that the productive performance of the discount airline in the Russian Federation is possible under conditions of political support and infrastructure development and taking into account the length of the territory of Russia in accordance with the transport strategy of the Russian Federation until 2030 (“Transport Strategy of the Russian Federation until 2030”) [13]. The goals set in the Transport Strategy, namely to achieve a transport mobility factor of unit value, can be solved not by increasing the number of frequent fliers, but by raising the level of welfare and purchasing power of the population, as well as by discount subsidizing air transportation both at the federal level, and subjects of the federation, the priority development of low-cost airlines, regional air transportation and ground-based airfield infrastructure (Rudnev, 2010) [14]. The growing popularity of air transport and marketing tools, which have not been used by airlines in the Russian market before, also create favorable conditions for the development of low-cost destinations. In conclusion, the authors note that the development of human transport options and means of communication are moving to a new stage of development called “death of distance”. The modern consumer does not become a collector of material wealth, he is a “collector of experience”, and it certainly leads to an increase in mobility of the population, becoming a new factor in stratification of the world space. The availability of vehicles forms a new way of life, dividing society into privileged and non-privileged, thereby “highlighting” and creating a niche for the development of successful performance of low-cost airlines in the economic space of Russia

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