Russian airline S7 freezes plan to launch low-cost carrier

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(Reuters) - Russia's largest private airline S7 Group said on Wednesday that it was putting plans to launch a low-cost carrier on hold after aircraft deliveries were cancelled.

The company said last July that it planned to launch "Citrus", a budget airline focusing on regional routes.

"In 2022 deliveries of the aircraft required to launch the low-cost airline will not take place, so the development of the airline with this business model is unfortunately not possible now," the airline said in a statement.

It said it would make a decision on the future of the project by the end of the year.

Western sanctions over Moscow's military campaign in Ukraine have triggered a crisis in Russia's aviation sector, which has seen flights to Europe and the United States cancelled and the use of foreign-made aircraft restricted.

(Reporting by Reuters; editing by Jason Neely)

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