EasyJet launches cheap flights from London to Moscow - The Guardian

Ministers have welcomed the introduction of low-cost flights between London and Moscow as a boost to trade and investment, as the first easyJet service for the Russian capital departed on Monday.

EasyJet started its no-frills flights between London Gatwick and Moscow on the day it made its debut on the FTSE 100 index of Britain's biggest companies, after its shares more than doubled in the last year.

The airline, which beat off competition from Virgin Atlantic to secure the limited rights to the route, expects to fly more than a quarter of a million passengers between London and Moscow annually.

Carolyn McCall, the chief executive of easyJet, said: "Moscow is a landmark route and one we are delighted to be able to serve. Russia is the world's largest country with a growing economy. Offering frequent and affordable flights enables easyJet to play a key role to aid trade links between the two countries."

EasyJet started officially trading on the FTSE 100 on Monday after its entry was confirmed earlier this month, less than 20 years after the airline with its distinctive orange-liveried aircraft was founded by Sir Stelios Haji-Ioannou with two borrowed planes.

McCall said the soaring share price was down to the "strategy of sustainable growth and returns and our disciplined approach to capital allocation" – a strategy that Haji-Ioannou, now the largest single shareholder, has attributed to his broadsides against the board and "always being on their case".

McCall said bookings for both of easyJet's Russian routes – direct flights from Manchester start on 28 March – had surpassed expectations, particularly from the Russian end. "We are already well known to Muscovites".

A trade mission was on board the first flight, with representatives from UK companies in sectors including food, technology and manufacturing.

Transport minister Simon Burns welcomed the launch of the services, saying: "I am certain it will help to deliver tremendous benefits to business and leisure passengers. It also demonstrates the ongoing capability of London's airport network to attract new, direct services with the world's largest markets."

Gatwick's chief executive, Stewart Wingate, said the route not only provided an essential new link to a key emerging market, but was "significant because it offers passengers greater choice in terms of price, flight times and which airport they fly from" and would "enable businesses in both countries to make the most of the vast opportunities available for bilateral trade".

Wingate has recently embarked on a more aggressive public dispute with rival airport Heathrow over the need for greater "hub airport" capacity, with Heathrow claiming that only a single hub can effectively deliver links to emerging markets.

British Airways is the only other UK airline to fly to Moscow, with three daily services from Heathrow. Russian airlines Transaero and Aeroflot also fly from the west London hub.

Lord Green, minister for trade and investment, said the launch showed the "strengthening relationship" between the UK and Russia. "Russia is currently our fastest growing major export market and its recent accession to the World Trade Organisation is making it easier for UK businesses to trade and invest there," he said.

McCall dismissed suggestions that a slowdown in the Russian economy would hurt the route. She said: "Slamming into reverse for Russia is just slowing growth really. We've demonstrated our model succeeds even when times are tough."

Leisure and business travel to Russia is likely to grow with the Sochi 2014 Winter Olympics and the football World Cup in 2018. Travel website TripAdvisor said searches from the UK for Moscow hotels had doubled since the cheaper flights went on sale.

In April, EasyJet will increase its current daily return flight from Gatwick to Moscow to two daily return flights, with fares under £100 for a one-way trip. Its Manchester service will be the first direct scheduled link from the city to Moscow.

McCall made a pre-budget plea to the chancellor, George Osborne, to scrap air passenger duty, claiming it would "create jobs and drive growth". Burns, said it was a matter for the chancellor and "he didn't want to get into trouble or queer his pitch".