Russia's growing high-speed rail network poses threat to domestic airlines

While transportation remains one of the biggest issues for Russia, the country is trying to add speed to its trains, the most beloved way of travelling for most Russians. A high-speed railway connecting Moscow with the Urals is the latest initiative.

The first high speed railway project between Moscow and Saint Petersburg is now being underway, and should be completed by 2017.

High – speed rail running through Moscow, Nizhny Novgorod, Kazan and Ekaterinburg could lure away about 80% of passengers from the air carriers operating in the country, which would mean loss of about $12.6 bn in revenue over 30 years, according to PricewaterhouseCoopеr's (PwC).