Aeroflot plans to transport one hundred million passengers in 2023

© RIA Novosti / Ramil Setdibcolortable Aeroflot. Archival photoAeroflot plans to transport one hundred million passengers in 2023© RIA Novosti / Ramil Sitdikov

In early November, the Board of Directors of the largest Russian airline «Aeroflot» has adopted a new development Strategy of Aeroflot Group for the coming five years. Until 2023 the planned doubling of passenger traffic, creation of new hubs, a significant increase fleet of domestic aircraft, including the latest MS-21.

Basic parameters of the updated strategy of the Group at the end of October at a meeting with Russian President Vladimir Putin announced the airline’s CEO Vitaly Saveliev.

One hundred to one hundred

A new strategy called «100 million passengers for the 100th anniversary of Aeroflot» is adopted in connection with the early achievement of the main objectives developed earlier development Strategy of Aeroflot group through 2025. By the end of 2017, with a traffic volume of 50.1 million passengers, the Group entered the TOP-5 European traditional and TOP-20 world aviation holdings passenger traffic. Now tasked to carry 90-100 million passengers in 2023, when Aeroflot will celebrate its centenary.

«2009 is a point when I came to Aeroflot, Aeroflot with its two subsidiaries transported 11.1 million people. In 2017, the last year, we officially entered the top twenty global carriers, we have become the 19th company, moved 50,1 million people as a Group of «Aeroflot». This year we will increase our transportation, and in General, the Group will carry 56 million people» — quoted Savelyev on the Kremlin website.

«How will develop this situation — 90-100 million? In the past year — 33, will be 36, but 52 million is our estimate, more Aeroflot loading is not necessary, because we remain in the premium segment. We have, as you remember, the youngest fleet among the world’s airlines — more than 100 aircraft. We want to stay in premium segment. But the «Victory,» which this year has moved five million, seven will carry, we must load significantly. The growth rate is very bright, and we really can carry 25-30 million by 2023 — the development of low-cost airline,» said Savelyev.

According to him, «Victory» today is very popular. «She’s complicated, it’s a lot of questions, but it has a download of 94 percent, and profit — she was two years gives a net profit of 3.5 billion rubles. Our investment in «Victory» for the business plan was supposed to be $ 100 million. We invested 50. The two estimates, direct comparison and mathematical model, which was made by experts show that it’s worth 612 million dollars. The current price of «Victory.» And it will continue to evolve quite successfully,» — said the Director.

One of the goals of the Strategy is to increase international transit passenger traffic of 5 million passengers in 2017, up to 10-15 million in 2023. This takes into account the undeniable competitive advantage of Aeroflot on the transit Europe — Asia, which represents one of the world’s most important transportation markets. According to the company, the Russian airline wins to 3 hours transit time in comparison with competitors and has the lowest costs on these routes, and also takes first place for transportation in some areas of the major European centres in cities of China.

Also one of the main objectives is the discovery by 2023 regional bases throughout Russia. The aim is to establish three new regional base in Sochi, Yekaterinburg and Novosibirsk, as well as international hub in Krasnoyarsk. Is expected almost to triple, the regional transport 7 million passengers in 2017 up to 19 million in 2023.

«We’re at the Park today already have 50 machines of the Sukhoi Superjet 100 machines we have now signed the agreement….And we are waiting for 50 cars MS-21. All these 200 cars in 2023, we hope to launch. We will have some retirement, but about 190 of the domestic machines we have at the moment will fly. We hope that all of this will take place,» said Savelyev.

Just to achieve the target of passenger traffic the number of the fleet of the Group should be approximately 520 machines.

«We will transport in the order of 90-100 million passengers, international transit — 10-15 million passengers, the fleet is shared, the whole group will be 520 vehicles, of which 190 will be domestic production. The group’s revenue will be 1.3 trillion rubles, and market capitalization, according to our estimates, in spite of everything, could rise to 400 billion rubles,» — summed up the head of Aeroflot.