Russia to replace sanctions-hit airline with new carrier

MOSCOW (Reuters) - State-controlled Russian airline Aeroflot will create a new low-cost subsidiary to replace sanctions-hit Dobrolyot, RIA news agency reported on Sunday, citing Aeroflot chief executive Vitaly Savelyev.

Aeroflot-run Dobrolyot suspended flights in early August after its lease agreement for Boeing aircraft was cancelled under European Union sanctions because it flies to Crimea, which Russia annexed from Ukraine.