The low-cost carrier (LCC) business model has been expanding throughout the globe, though with limited success in the CIS. This may be changing, as recent increases in the number of LCC flights from neighboring regions and Aeroflot's intention to launch a low-cost subsidiary could signal the market's readiness for airline business model innovation. Rail transportation is still very popular in the region, but LCCs operating with competitive airfare and faster travel time may capture traffic from the rails.