Russian Transportation Minister, Igor Levitin, confirmed plans to close Moscow Vnukovo Airport for up to three months while one of its runways is being reconstructed (RIA Novosti, 18-Sep-2010). The airport has two intersecting runways. Renovations on Runway 2 were completed in Mar-2009, while Runway 1 has not been refurbished since 1985. The project is likely to be carried out during the off-peak season between February and April. The Government of Moscow launched a reconstruction and development project for the airport in 2003, which is expected to be completed in 2003.
Russia confirms plans to close Moscow Vnukovo for runway upgrade
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S7 Airlines Part 2: history of growth in fleet, pax, revenue & profit shows benign market structure
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This second part of the report on S7 highlights its respectable track record of growth in its operations and profitability since the establishment of its subsidiary Globus in 2008. In 8M2016 its passenger growth rate accelerated to 25%, after a 6% increase in 2015. Although demand for international air travel to/from Russia has slumped due to geopolitical developments, S7 has benefited from growth in the domestic market and from capacity cuts by foreign competitors on international routes. It has also benefited from the 2015 collapse of Transaero (although Aeroflot has gained more from this).
S7 Airlines Part 1: Russia's #2 airline's main focus is domestic, with pockets of strength in Asia
S7 Airlines, together with its subsidiary Globus, achieved a 25% increase in passenger numbers in the first eight months of 2016. Passengers flying the S7 brand totalled 10.6 million in 2015, making it Russia's second biggest airline after Aeroflot (thanks also to the collapse last year of former number two Transaero). This first part of CAPA's report examines S7's current network. A second part will analyse its growth, fleet and financial track record.
Moscow Domodedovo is S7's biggest airport and its main hub for the domestic market, which accounts for around two thirds of its seat capacity. Domodedovo is also its hub for international routes to Europe (mainly Eastern and Central Europe). Although it is the biggest airline at this airport, on a city pair basis on many routes from Moscow there is significant competition from the market leader Aeroflot, whose main hub is Sheremetyevo.
However, S7 also has a noteworthy network to cities in Northeast and Southeast Asia from regional airports elsewhere in Russia, in particular Novosibirsk and Vladivostok. Competition on these Asian routes is much less severe: indeed, S7 is the only operator on the majority of its routes to NE/SE Asia and its position is further boosted by codeshares (including with Aeroflot).