- CAPA Analysis
- Schedule Analysis
- Low Cost Carriers
- Economics & Trade
- Print Summary
- IATA Code
- International Airlines serving this country (excluding codeshares)
The passenger air transportation sector in Russia can be characterised by significant competition. Aeroflot is majority owned by the Russian Government and is the flag carrier and largest airline of the Russian Federation. The three major airports serving Moscow are Sheremetyevo International Airport (SVO), Domodedovo International Airport (DME) and Vnukovo International Airport (VKO). Aeroflot dominates the domestic passenger market in Russia, however other airlines also provide frequent national and international services and they include S7 Airlines, Transaero, UTair Aviation as well as VIM Airlines and Nordavia. The Federal Agency for Air Transport of Russia is the government that is responsible for rendering governmental services and managing governmental property in the sphere of air transport (civil aviation) and the usage of air space over the Russian Federation.
Airports in Russian Federation
8,519 total articles
52 total articles
Bombardier’s 2014 is about two aircraft programmes, one all new and one that is 31-years old this year.
The company’s new CSeries narrowbody, delayed again at the beginning of 2014, will be the main focus of airline, investor and media investor attention.
However, the Q-Series turboprop has the potential to be Bombardier’s most important aircraft programme this year, with a major deal brewing in Russia.
Market consolidation and a dominant role for Aeroflot have produced the foundations for what is now a sustainable domestic Russian industry.
But it has come at a cost. Russia’s aviation remains heavily concentrated around Moscow and availability of low prices has meant that many potential air travellers are still surface-bound.
As Aeroflot plans its own new LCC subsidiary, there are changes afoot which promise considerable upside in air travel for this potential-rich country. The long-established carrier should again find itself in a strong position to expand profitably, even where new entry occurs.
In this second part of our global airport privatisation wrap for 2013, along with CAPA's 2014 outlook, we review activity in Africa, the Middle East, Russia/West Asia, India, China and the rest of Asia. Part One of this report reviewed the situation in Europe, North America and Latin America.
The information presented here is drawn from CAPA's unique Global Airport Investors Database, which is just one component of the new CAPA Airports Data Suite.
2013 was a year when the number of deals at best remained stable, but the number of participants in investment continued to grow, despite some ‘retirements’.
Aeroflot: strong profit growth in 9M2013. LCC subsidiary Dobrolet complements the team in early 2014
Aeroflot Group enjoyed strong growth in traffic, revenues and profits over the first three quarters of 2013, succeeding both in growing RASK and lowering CASK and bringing the prospect of improving its FY2013 operating margin, after two years of falling profitability. It has led the consolidation of the Russian airline sector, integrating and reshaping newly acquired subsidiaries, and now appears to be reaping the benefits of this government-backed process.
The next phase in the group’s progress will be the planned launch in northern spring 2014 of its LCC subsidiary Dobrolet. LCCs have not previously been a feature of the Russian market, but this is changing on international routes. easyJet is now well established from London and Manchester to Moscow; Wizz Air flies from Budapest to Moscow; and Ryanair has obtained permission to fly from Dublin to Moscow and St Petersburg from Mar-2014.
Legislation allowing elements of the LCC business model in the domestic market is expected to be passed by the end of this year and Aeroflot is investing USD100 million in Dobrolet to take advantage of this.
Air Astana plans more rapid growth in 2014 but Kazakhstan airline market shows signs of slowing down
Air Astana is planning another year of double-digit capacity growth in 2014 as the Kazakhstan flag carrier expands its 767, A320 and E190 fleets. The carrier will focus on further expansion in the CIS and Central Asia region, but new 767-300ERs will also enable some capacity growth across its long-haul network.
ASK growth of 15% is expected for 2014, following 16% growth in 2013. But Air Astana plans to slow down expansion in 2015, ending a period of five consecutive years of expansion at a pace of approximately 15% per annum.
Market conditions have become less favourable in 2013, impacting load factors and profit margins. The prospect of increased competition, including the possible opening of Kazakhstan’s domestic market to Russian carriers, clouds Air Astana’s medium to long term outlook.
The United Arab Emirates’ newest airport, Dubai World Central (DWC), opened its passenger terminal on 27-Oct-2013 and its first commercial passengers. The operator was Wizz Air, the Eastern/Central European LCC, with a flight from Budapest. Wizz Air Group (which includes Wizz Air Ukraine) also launched Bucharest, Sofia and Kiev from DWC as the winter season commenced.
According to Wizz Air CEO József Váradi, Wizz Air expects to handle 250,000 passengers on services to DWC in the first year of operations. Based on the four routes launched this week, this would imply load factors averaging 95%. Although Wizz Air’s 2012 load factor was more than 85%, this seems very ambitious for new routes, even in the hyperbolic world of low-cost airlines. More likely, Wizz Air plans to add frequencies and/or routes through the year.
Either way, it demonstrates the carrier’s confidence in taking the narrowbody LCC model further than most on routes that look to be under-penetrated. Mr Váradi is even talking of adding flights to India from DWC.