Category Archives: Aeroflot Russian Airlines

Japan Airlines and Aeroflot launch a comprehensive partnership

JAL-Japan Airlines Boeing 787-8 Dreamliner JA828J (msn 38438) PAE (Nick Dean). Image: 909162.

Japan Airlines (JAL) Aeroflot Russian Airlines have signed a Memorandum of Understanding (MoU) for a strategic cooperation agreement to pursue commercial opportunities which will greatly benefit the customers of both airlines by providing more options for travel between Russia and Japan.

Since the relaxation of visa requirements to the nationals of Japan and Russia from January 1, 2017, the demand between the two countries has been steadily increasing and the two airlines have agreed to work together to further stimulate travel between the two countries.

As a first step, JAL and Aeroflot have agreed to start codeshare cooperation between Japan and Russia as well as Aeroflot’s domestic flights, and JAL’s domestic and international flights. The first stage of the codeshare cooperation is planned to be implemented after fiscal year 2018.

In addition to the codeshare cooperation, JAL and Aeroflot will pursue the development of the partnership in various areas, including frequent flyer programs, airport relocation, while considering a joint business in the future.

Japan Airlines currently operates four weekly flights to Moscow Domodedovo Airport from Tokyo Narita Airport using Boeing 787-8 aircraft. Between July to October 2017, the frequency had temporarily increased to seven flights per week to accommodate the demand during the peak summer season in 2017.

Aeroflot operates daily nonstop flights year-round from Moscow Sheremetyevo Airport to Tokyo Narita Airport. Flights from Moscow are operated with Airbus A330-300 aircraft.

Top Copyright Photo: JAL-Japan Airlines Boeing 787-8 Dreamliner JA828J (msn 38438) PAE (Nick Dean). Image: 909162.

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Bottom Copyright Photo: Aeroflot Russian Airlines Airbus A330-343 VQ-BCV (msn 1072) GVA (Paul Denton). Image: 911403.

Aeroflot Russian Airlines Airbus A330-343 VQ-BCV (msn 1072) GVA (Paul Denton). Image: 911403.

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Transaero Airlines ends all operations, Aeroflot to carry Transaero passengers until December 15

Aeroflot Russian Airlines (Moscow) has announced Transaero Airlines (Moscow) ended all operations last night at midnight (October 25) after losing its AOC effective today. Aeroflot will continue to fly passengers with Transaero tickets until December 15. According to Aeroflot; “Of the 1.93 million Transaero tickets sold for flights before December 15, 2015, 1.83 million passengers — or 94.8% of the total — have already been flown under Aeroflot’s operational management.”

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Transaero Airlines commenced operations on November 5, 1991.

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Aeroflot outlines its winter schedule, will not fly to Kiev and Odessa due to the ban

Aeroflot Russian Airlines (Moscow) has outlined the changes with its new winter schedule:

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From October 25, 2015, Aeroflot will move to its winter flight schedule, which will be in place through March 26, 2016.

Flights to 51 countries are planned for winter 2015-2016. Aeroflot will fly from 119 points of origin, among these 43 in Russia and eight in the CIS. In light of Ukraine’s introduction of a ban on Aeroflot flights from October 25, there will be no more flights to Kiev and Odessa.

Aeroflot will fly to 68 destinations further afield, including 45 in Europe, 13 in Asia, five in America and five in the Middle East and Africa.

The winter timetable continues to place emphasis on growth of Aeroflot’s route network within Russia. The company is launching a new route between Moscow and Stavropol. It is also examining the possibility of introducing service to Saratov. Flights between Moscow and Voronezh, which began in June, will continue.

Aeroflot will fly to destinations across Russia that have strong passenger demand: Abakan, Adler/Sochi, Anapa, Arkhangelsk, Astrakhan, Barnaul, Vladivostok, Volgograd, Voronezh, Yekaterinburg, Irkutsk, Kazan, Kaliningrad, Kemerovo, Krasnodar, Krasnoyarsk, Magadan, Magnitogorsk, Mineralnye Vody, Murmansk, Nizhnekamsk, Nizhny Novgorod, Novosibirsk, Novy Urengoy, Samara, St. Petersburg, Nizhnevartovsk, Novokuznetsk, Omsk, Orenburg, Perm, Petropavlovsk-Kamchatskiy, Rostov-on-Don, Simferopol, Stavropol, Surgut, Tomsk, Tyumen, Ufa, Khabarovsk, Chelyabinsk, Yuzhno-Sakhalinsk and Yakutsk.

The number of flights on high-demand routes will increase. Flight frequencies per week from Moscow to the following domestic destinations will increase: St. Petersburg (from 107 to 112), Nizhny Novgorod (from 35 to 42), Sochi/Adler (from 35 to 42), Rostov-on Don (from 21 to 42), Mineralnye Vody (from 21 to 35), Arkhangelsk (from 14 to 21), Murmansk (from 14 to 21) and Tomsk (from 7 to 14).

The weekly frequency of flights to Minsk has also increased significantly (from 28 to 35). Among European destination, flight frequencies to Berlin and Prague will increase, as will flights to Munich (from 21 to 28), Riga (from 21 to 28) and Warsaw (from 14 to 21).

The needs of tourists who prefer beach holidays have been taken into account. For Winter 2015/2016 there will be a greater number of flights to destinations in South East Asia and the Caribbean, including daily flights to Phuket, Havana and Hanoi. The number of daily flights to Cairo has doubled (from 2 to 4). At the same time, over the winter period flights to Heraklion and Split traditionally stop, consolidating their status as purely summer resorts.

Other Aeroflot Group airlines will carry passengers on an additional 70 routes. Including low-cost carrier Pobeda, Aeroflot Group unique routes will total 200.

An additional 125 unique routes will be offered to our customers via code sharing agreements with partner airlines. Code-sharing agreements expand Aeroflot’s reach to 17 additional countries: Albania, Algieria, Bosnia and Herzegovina, Ghana, Indonesia, Ireland, Iceland, Cambodia, Kenya, Luxembourg, Macedonia, Morocco, Myanmar, Portugal, Saudi Arabia, Slovenia and Tunisia.

In total, including through agreements with partner airlines, flights on 325 routes across 68 countries will be operated under Aeroflot’s “SU” code.

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Aeroflot assigns an Orenair Boeing 777-200 to fly Transaero’s passengers for Biblio Globus

Aeroflot Russian Airlines (Moscow) has issued this statement:

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Aeroflot, tour operator Biblio Globus and Transaero Airlines (Moscow) have reached agreement on transportation of Transaero passengers through December 15, 2015.

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Aeroflot has made available a long-range Boeing 777-200 from the fleet of its Orenair (Orenburg Airlines) (Orenburg) subsidiary to the tour operator in fulfilment of obligations between Biblio Globus and Transaero to carry tourists through December 15. The decision was taken due to Transaero’s inability to operate its own planes on the tour operator’s routes and the cancellation by Transaero of all charter flights after October 25.

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Biblio Globus thanks the management of Aeroflot and Transaero for its assistance in resolving the challenge of carrying Transaero passengers. The airplane will be made available for two months, from October 15 to December 15.

Copyright Photo: OSDU/AirlinersGallery.com. Orenair (Orenburg Airlines) Boeing 777-2Q8 ER VQ-BNU (msn 29908) departs from Moscow’s Shermetyevo Airport.

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Aeroflot will not proceed with the acquisition of Transaero, will end operations on December 15

Aeroflot Russian Airlines (Moscow) will not proceed with its acquisition of 75 percent of the stock of rival and struggling Transaero Airlines (Moscow) according to Reuters. Transaero’s shareholders failed to meet the deadline for an acquisition plan.

Read the full report: Read the Full Story (LRW)

Meanwhile the Russian government has given its approval for Transaero to file for bankruptcy according to rt.com.

Read the full report: Read the Full Story (LRW)

The airline has acknowledged on social media that it is “rehabilitating its activities” and would have more details later today.

According to Bloomberg the airline’s creditors have not yet agreed on a restructuring plan. The government has banned the airline from selling any further tickets due to its large debt.

Aeroflot will reportedly stopped buying fuel for Transaero aircraft which affectively grounds the airline.

Read the full report:  Read the Full Story (LRW)

Update: On October 2, 2015 Transaero Airlines issued this statement:

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Upon the decision of the Government of the Russian Federation on external management and sanation of Transaero Airlines, the carrier interacts with the partners to ensure the carriage of the passengers holding the tickets of the airline.

The airline has suspended ticket sales.

The transportation of passengers-holders of the airline’s tickets on domestic and international routes will be provided until December 15, 2015.

Passengers-holders of tickets for flights after 00.00 of December 15, 2015, will be able to get refund of the full ticket price.

In summary, Transaero Airlines will cease operations at midnight on December 15, 2015.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Antalya, Turkey is a favorite destination for the carrier and its uses Boeing 747-400s to bring large loads of Russian tourists to the popular beach resort. Flights are now being delayed from leaving Antalya (AYT). Boeing 747-446 EI-XLG (msn 30111) taxies at AYT.

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Will the Transaero Airlines brand be retired and merged into Aeroflot?

Aeroflot Russian Airlines (Moscow) has agreed to acquire 75 percent of the shares of failing Transaero Airlines (Moscow). Aeroflot is buying out its main competitor (and its $1.6 billion debt) for the symbolic price of one ruble. Transaero Airlines is the second largest airline in Russia and has lately been failing and building up a large debt.

According to Reuters, “Transaero will be completely overhauled and integrated into the Aeroflot group,” an Aeroflot spokesman was quoted as saying by RIA news agency.

For now, the Transaero Airlines name will be kept alive as a significant but shrinking part of the Aeroflot Group. However for the long term, will Transaero be merged into Aeroflot and the brand retired?

Above Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. Transaero has been introducing this new brand with its new deliveries. Will this new look be retained?

51 percent of the Aeroflot stock is owned by the government of Russia. The government is backing its major industries.

Transaero Airlines (and many other Russian airlines) have been struggling since the ruble collapsed in 2014. In short, Russian citizens are traveling less overseas with their devalued currency.

As we previously reported, even Aeroflot reported a loss in the first half of this year.

On September 1, Transaero Airlines issued this short statement:

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The Government of the Russian Federation held the meeting of the Intergovernmental commission chaired by Igor Shuvalov, First Deputy Prime Minister, on the issues of air transport industry.

In the interests of the development of the commercial aviation and creating one of the largest in the world group of airlines, the commission has approved the acquisition of JSC Transaero Airlines by Aeroflot group.

The shareholders of Transaero Airlines believe this measure will serve the interests of passengers, personnel and partners of the airline.

The Chairman of the meeting has highly appreciated the role of the founders, managers and all the personnel of Transaero Airlines in the modern history of the commercial aviation of the country.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-United Airlines and Air India  Boeing 777-222 ER EI-UNV (msn 28714, ex N205UA/VT-AIK) arrives at Los Angeles International Airport.

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Aeroflot Group reports a net loss for the first half

Aeroflot Group (Aeroflot Russian Airlines) (Moscow) today (August 31) published its consolidated interim financial statements for the six months ended June 30, 2015, in accordance with International Financial Reporting Standards:

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First Half (1H) 2015 Operating and Financial Highlights for Aeroflot Group:

  • Group passenger traffic increased by 14.0% year-on-year, with 33.4% year-on-year growth in the domestic segment;
  • Aeroflot Group increased its market share [1] by 5.8 percentage points (p.p.) year-on-year to 37.0%;
  • Revenue reached RUB 176,467 million, up 25.8% year-on-year;
  • EBITDAR [2] nearly doubled year-on-year to RUB 33,252 million;
  • EBITDA [2] increased by more than two-fold year-on-year to RUB 13,311 million;
  • Operating profit amounted to RUB 5,866 million as compared to an operating loss of RUB 1,384 million in 1H 2014;
  • Net loss amounted to RUB 3,541 million ($52,699.99)

Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Finance and Network and Revenue Management, commented:

“In the first half of 2015, Aeroflot Group strengthened its position as the leader in the Russian air transportation market with 14.0% year-on-year growth in passenger traffic and a 5.8 percentage point increase in market share. This was driven by strong operational performance at Aeroflot airline and the successful roll-out of Russia’s first low-cost carrier, Pobeda, which has quickly become one the top airlines in the country. The Group also benefited from changes in the competitive landscape, taking market share from foreign carriers that decreased frequencies on a number of routes as well as less efficient Russian peers.

“Our focus on the high-growth domestic market paid off with strong increases in Group traffic, which drove revenue up 25.8% year-on-year to RUB 176.5 billion, while strict cost control reined in growth of operational expenses despite exchange rate volatility. As a result, in the first half of 2015 Aeroflot Group posted an operating profit of RUB 5.9 billion; EBITDA and EBITDAR also rose, and the EBITDA and EBITDAR margins increased 3.9 and 6.9 percentage points to 7.5% and 18.8%, respectively.

“The Group focused on fleet optimization, cost-cutting, boosting efficiency of business processes and financial management, and maintaining a robust financial position. We are confident our policy of expanding our presence on the growing Russian market, maintaining customer loyalty and increasing business efficiency will enable continued growth in the Group’s profitability as the Russian economy recovers.”

In 1H 2015, Aeroflot Group’s revenue increased by 25.8% year-on-year to RUB 176,467 million, primarily as a result of an increase in revenue from Scheduled passenger flights and Other revenues.

Revenue from scheduled passenger flights in 1H 2015 increased by 30.0% year-on-year to RUB 144,087 million, boosted by 14.0% growth in passenger traffic year-on-year. Revenue from charter flights decreased by 71.0% to RUB 2,075 million, due to the Group’s strategy to decrease its presence in this market segment, as well as overall market dynamics in tourism traffic.

Despite a 1.0% decrease in the volume of cargo and mail carried in 1H 2015, cargo revenue increased 16.3% year-on-year on the back of stronger yields.

Other revenues increased by 39.9% year-on-year to 25,863 million, mainly driven by an increase in FX-denominated revenues from airline agreements following changes in the exchange rate.

Notes:

1. Including foreign carriers traffic.

2. EBITDAR = EBITDA before operating lease expenses. EBITDA = operating income + depreciation & amortization + customs duties.

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