Forward looking S7 confident amid downturn

S7 was the first carrier in Russia to convert to an all Western-built Airbus and Boeing fleet and the first to adopt full electronic ticketing and on-line reservations and sales. It holds IATA’s IOSA (International Air Transport Association Operational Safety Audit) certification, renewed in October 2008.

It offers two-class, business and economy, in-flight product on all departures. Its fleet includes 26 Airbus A320 family types, seven Airbus A310 and two B767s, with an average age of nine years. S7 carried 6 million passengers in 2008.

The airline generated profits of US$108 million (operating) and USD3 million (net) in 2008, on revenues of USD1.7 billion. S7 employs 3,354 staff and uses SITA as its main IT platform.

In good health despite economic troubles

The airline has reported that in mid-2009, despite the complex economic situation and a decrease in domestic and international passenger volumes, the airline is in good shape operationally. A cost management policy has led to overhead costs being cut by 25% - saving over RUB300 million (USD9.6 million) per year.

Additional revenues of around RUB370 million (USD11.9 million) have been gained from selling spare parts and leasing Russian aircraft no longer used by the company. The sales efficiency growth will boost revenue by 2 to 3%, and cut expenses by RUB120 million (USD3.8 million) per annum.

In May-09, Vladimir Obyedkov was appointed Sibir Airlines CEO, with the previous incumbent, Vladislav Filev, being promoted to CEO of S7 Group.

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More