Aeroflot Group pursues a policy of balanced development of its route network in accordance with a multi-brand platform that provides efficient business development in various price and regional segments. The Group is expanding its route network, increasing flight frequency and the number of destinations, while maintaining positive financial results. Efficiency of the route network is being improved by concentrating resources on those routes that provide maximum revenue and profit.
As of 31 December 2013, the route network of Aeroflot Group included 293 regular destinations in 65 countries. The route network of JSC Aeroflot consisted of 156 scheduled and charter destinations in 56 countries.
Routes of JSC Aeroflot
The Group is opening new routes and boosting its capacity on existing routes based on criteria of economic feasibility, demand, competition and social requirements. A total of 25 new regular routes were added in 2013:
- Sochi to Almaty;
- Chelyabinsk to Anapa;
- Khabarovsk to Blagoveshchensk and Novosibirsk;
- Krasnodar to Sochi, Ekaterinburg, Dusseldorf and Yerevan;
- St. Petersburg to Syktyvkar;
- Moscow to Magnitogorsk, Novokuznetsk, Beslan, Yakutsk, Thessaloniki and Toronto;
- Mineralniye Vody to Ekaterinburg;
- Omsk to Anapa, Varna and Munich;
- Perm to Anapa;
- Orenburg to Orsk and Varna;
- Rostov-on-Don to Antalya;
- Yuzhno-Sakhalinsk to Petropavlovsk-Kamchatsky;
- Vladivostok to Krasnoyarsk.
In 2013 Aeroflot launched flights on nine new routes from Moscow to Abakan, Blagoveshchensk, Magnitogorsk, Novokuznetsk, Thessaloniki, Toronto, Ulan-Ude, Chita and Yakutsk.
Change in the number of flights by Aeroflot Group to Various Regions (2013 vs. 2012,%)
Distribution of Aeroflot Group available seat kilometers by region, million
| Russia and CIS
| Middle East and Africa
| North America
Flight frequency on the most popular and profitable routes (mainly international and long-haul) was stepped up in the reporting year.
The expansion of Aeroflot’s flight geography enabled the Company to reduce passenger waiting times at connecting airports on priority routes and to enhance comfort levels for connecting passengers at Terminals D, E and F at Sheremetyevo Airport. The number of transit passengers on flights in JSC Aeroflot’s own network grew by 28.1% in 2013 to 7.3 million passengers, representing 35% of the total number of passengers carried by the airline and 23.3% of total Aeroflot Group passenger numbers. The connection ratio for Aeroflot’s own flights increased by 15.0% in 2013 to a level of 12.7.
Aeroflot Group plans to expand its network by 15-16% in 2014 compared with 2013. New destinations will include Karaganda and Novy Urengoy.
The policy of Aeroflot Group airlines regarding prices for passenger tickets is determined by economic expediency, market conditions and (where appropriate) by legislative requirements. Group airlines strive to obtain maximum revenue from the sale of air transport services, in order to ensure sustainability of the Group’s financial position and ensure the development of Group business in the future.
Group airlines carry out promotions in the low season in order to stimulate demand, offering special lower ticket prices to passengers. Group companies in some regions also offer transportation at rates that are subsidised by government programmes.
Obtaining rights, dispensations, permissions and authorisations for the increase of flight frequencies
In 2013 JSC Aeroflot obtained the following permissions and authorisations from Rosaviatsia on behalf of the Russian Ministry of Transport:
- 12 new permissions for regular international passenger carrying on the routes:
- Vladivostok to Dalian, Mudanjiang, Pusan, Sanya, Seoul, Tokyo and Harbin.
- Moscow to Karaganda and Chisinau.
- Sochi to Frankfurt-am-Main.
- Khabarovsk to Tokyo.
- Yuzhno-Sakhalinsk to Harbin.
- 12 additional authorisations to increase the frequency of flights on regular passenger routes from Khabarovsk to Harbin and from Moscow to Amsterdam, Bangkok, Bishkek, Goa, Kiev, Minsk, Odessa, Simferopol and Tivat.
Regular route permissions of JSC Aeroflot that expired, in 2013 were extended for a further five years. The Company received 13 new permissions and extensions for international non-regular (charter) passenger services on routes from Moscow to Barcelona, Burgas, Varna, Grenoble, Sofia, Tel Aviv and Chambery.
- Aeroflot also received dispensations in 2013 through diplomatic channels of the Russian Foreign Ministry for provision of regular flights on 13 routes:
- Vladivostok to Dalian, Mudanjiang, Sanya and Harbin.
- Ekaterinburg to Thessaloniki.
- Moscow to Basel, Varadero, Guangzhou (increase of flights), Karaganda, Krakow (permanent basis) and Thessaloniki.
- Khabarovsk to Harbin.
- Yuzhno-Sakhalinsk to Harbin.
Cooperation under code-sharing agreements
Aeroflot Group continued to develop its cooperation with partners through code-share agreements throughout 2013. During the reporting year, JSC Aeroflot transported more than 500,000 passengers of code-share partners and about one million Aeroflot passengers flew on flights operated by partners. Total revenue from operations under code-sharing agreements was about RUB 4.8 billion.
Aeroflot’s main code-share partners last year, measured by the scale of cooperation, were:
- International: Alitalia, Air France, Czech Airlines, LOT and Air Baltic.
- Domestic: Subsidiaries of JSC Aeroflot and also JSC Nordavia (among Russian companies).
The number of marketing routes used by JSC Aeroflot increased in the reporting year from 248 to 256. Agreements on joint operation of flights were initiated with a number of airlines: Middle East Airlines, China Eastern Airlines, and the Moroccan national carrier, Royal Air Maroc.
Aeroflot Group focused on further integrating Donavia and Aurora Airlines with JSC Aeroflot. Ticket sales on flights of the airline subsidiaries under code-share agreements use a ‘commuter’ model, by which joint flights are shown in booking systems under Aeroflot’s unified SU code (this differs from usual code-sharing, where a dual code and flight numbers of both partners are shown). More than 2.8 million passengers flew on Aeroflot commuter flights in 2013.
At the beginning of 2014 Aeroflot had code-share agreements with 31 foreign and Russian airlines, including:
- 19 agreements where Aeroflot is both operating and marketing partner, with Air France, KLM, Alitalia, SAS, Finnair, DELTA Air Lines, Czech Airlines, LOT Polish Airlines, Bulgaria Air, Cyprus Airways, Korean Air, Air Serbia , MIAT, Air Baltic, Air Europa, Kenya Airways, China Eastern Airlines, China Southern Airlines and Rossiya Airlines.
- 4 agreements where Aeroflot is only an operating partner, with Tarom, Cubana, Iran Air and Middle East Airlines.
- 5 agreements where Aeroflot is only a marketing partner, with Adria Airways, Air Malta, Estonian Air, Royal Air Maroc and JSC Nordavia.
- 3 agreements with JSC Aeroflot affiliated airlines using a commuter transport model, with JSC Donavia, Orenburg Airlines and Aurora Airlines.
Company priorities in the development of code-share cooperation include:
- Strengthening Aeroflot’s presence on promising markets.
- Gaining access to markets that may otherwise be restricted.
- Further improvement of the existing route network, helped by increase of the marketing flight network.
- More efficient use of the fleet.
Code-share agreements planned for 2014 include Garuda Indonesia, Bangkok Airways and other partners. The Group also plans to transfer the operations of Rossiya Airlines to a commuter-based code-share model, managed by JSC Aeroflot, enabling further integration of the subsidiary’s route network into that of the Aeroflot Group.
Participation in the SkyTeam global airline alliance
Aeroflot Group continues to cooperate with the world’s largest air carriers in the framework of the SkyTeam alliance. Aeroflot traffic volumes as part of cooperation with SkyTeam reached 737,000 passengers and 1,817 tonnes of cargo in 2013.
The SkyTeam alliance had 19 members in 2013:
- Aerolineas Argentinas
- China Airlines
- China Eastern
- China Southern
- CSA Czech Airlines
- Kenya Airways
- Korean Air
- Vietnam Airlines
In March 2014 the alliance welcomed Garuda Indonesia as its 20th carrier.
SkyTeam accounts for 19% of global passenger traffic, and the alliance has a dominant position in ‘Greater China’ (mainland China, Hong Kong, Macau and Taiwan). The alliance offers services on over 90% of major global passenger routes.
The priority task for SkyTeam in 2013 was the implementation of strategic projects capable of making the alliance product the industry leader. The first stage of the SkyPriority project, which provides an extended set of privileges for high-usage customers, was completed in the reporting year. SkyPriority offers a number of services at airports to business-class passengers and cardholders of loyalty programmes at SkyTeam airlines:
- Priority registration;
- Priority baggage handling;
- Priority service at sales offices and transfer desks;
- Priority in customs formalities, passport control and security procedures;
- Priority boarding;
- Priority luggage return at the destination airport.
SkyPriority has been implemented across most of the Aeroflot route network. Work on the second phase of the programme, for further improvement of the product, is scheduled for completion by the end of 2014.
Major progress has been made by the SkyTransfer Accelerator system, which aims to improve service quality in transfers between flights.
Aeroflot carried out a number of measures in 2013 at Sheremetyevo Airport to improve the quality of service to transfer passengers. The Company has set up a control centre for connections and aircraft turnover (Hub Control Centre). A system has been put in place for transmission of information to the transit services of partner carriers on dispatch of baggage, helping to optimise baggage handling for connecting flights at major SkyTeam hubs. Aeroflot is now the handling company for six of the nine alliance carriers at Sheremetyevo Airport. Work is now being carried out at Sheremetyevo to meet requirements under the SkyTeam initiative to transfer all alliance members to service by a single agent.
As well as initiatives to improve service quality at hubs, SkyTeam also developed projects in 2013 enhance transfer operations throughout the SkyTeam route network. Introduction of an updated version of the departure control system (SSCI Sabre) on Aeroflot flights has enabled through-registration (IATCI) for alliance partners for flight connections of more than 48 hours.
SkyTeam Care and Assistance Policy
The rules of SkyTeam carriers for actions by companies to minimise negative impact of delay, cancellation and postponement of flights (SkyTeam Care and Assistance Policy) were standardised in 2013. JSC Aeroflot is carrying out work to enable partial access to the partners’ booking systems, since this will significantly improve the quality of service to passengers in case of service disruptions.
The SkyPort programme offers new opportunities for cooperation between alliance members and improvement of passenger service quality. Project actions in 2013 included:
- Opening of an alliance passenger lounge at Istanbul Ataturk Airport (Turkey);
- 110th SkyTeam-branded kiosk at Narita Airport (Tokyo, Japan) for check-in on any alliance flight;
- A new joint operations zone at Vienna International Airport (Austria);
- Shared sales offices for all SkyTeam members at airports in Prague (Czech Republic) and Istanbul (Turkey).
Aeroflot is cooperating with other alliance airlines in the cargo business through SkyTeam Cargo — a unique alliance of 12 freight carriers. China Cargo and Aerolineas Cargo joined SkyTeam Cargo in 2013.
Aeroflot has interline agreements with 172 airlines, including nine Russian companies and companies from nine CIS countries. Five new agreements were signed in 2013 and 11 were cancelled. More than 500,000 passengers were carried by Aeroflot and its partners under interline agreements during the reporting period.
cargo route network
JSC Aeroflot ceased operations with cargo aircraft as from August 2013. The Company now uses belly freight to transport cargo and mail. Aeroflot Group’s extensive route network makes possible delivery of customs and non-customs transit goods through Sheremetyevo Airport to dozens of airports in Russia and worldwide.
The number of routes offered at auctions for cargo capacity in 2013 was increased from four to 17. Electronic auctions are held for three major airports in Russia: Sheremetyevo, Vladivostok and Khabarovsk. Capacity on routes to Far East destinations, for which there is high demand, was offered at auction for the first time in the 2012-2013 winter season on an experimental basis.