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A year after the failure of two low-cost airlines, Russia is preparing for the creation of a new budget carrier. This time around, the industry’s flagship, Aeroflot, will nurture the new discount airline.

According at Aeroflot, ticket prices for certain routes could be reduced by as much as 30 percent if the government takes a number of measures, such as allowing the sale of non-refundable tickets, introducing baggage fees, and hiring foreign pilots.

Russia may prohibit its airlines from carbon emission trading in protest against a European Union law it says is unfair, state carrier Aeroflot said on Monday.

A group of nations will gather in Moscow this week to debate possible retaliation to the law, which raises the risk of a trade war by forcing all airlines to pay for their carbon emissions.

Aeroflot said the law could cost it 800 million euros by 2025. It warned that the opposition could change its approach from “‘oral protestations'” to “‘various forms of trade wars with the EU'”.

source: Reuters