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Name: ROSSIYA AIRLINE
7JetSet7 Code: SDM
Status: Operational
Region: CIS
City: ST PETERSBURG
Country: RUSSIA
Employees 6600
Web: rossiya-airlines.com
Email: press-centre@rossiya-airlines.com
Telephone: +7 812 704 3738
Fax: +7 812 704 3702
Sita:
Background
(definitions)

Click below for data links:
SDM-2012-12 - VIP JETS
SDM-LOGO
SDM-LOGO - 2013-11

Formed in 1992. A K A "Russia State Transport Company" and "Gosudarstvennaya Transportnaya Kompania Rossia." Domestic, regional, & international, scheduled & charter, passenger & cargo, jet airplane services.

Address:
18/4 Pilotov Street
St Petersburg, 196210, Russia

Russia (Russian Federation) was established in 1991, it covers an area of 17,075,400 sq km, its population is 148.4 million, its capital city is Moscow, and its official language is Russian.

Rossiya Airlines (SDM) was created by Aeroflot (ARO) as the Russian Special Civil Aviation Department, primarily tasked with operating VIP flights. Scheduled flights between Moscow and Liepaja, Latvia were also flown. The (SDM) brand was retained in 1995, despite the name change to the Russian State Transport Company.

October 2006: In 2005, the Russian government ordered the merger between Rossiya Airlines (SDM) and Pulkovo Airlines (STG), while keeping the "Rossiya" brand, but this has not yet been implemented.

Pulkovo Airlines (STG) and (SDM) are expected to merge into a new airline, likely called "Soyuz," in the coming months. The new airline is expected to begin operations with around 50 airplanes.

February 2007: 1st of 4 A319-113's (1149, VP-BTQ), ex-Northwest Airlines (NWA), S7 (SBR) wet-leased - see photo)

March 2007: A319-114 (1167, VP-BTT), ex-Northwest Airlines (NWA), S7 (SBR) wet-leased, delivery - see photo.

June 2007: Finnair (FIN) increased Helsinki - St Petersburg frequencies to 20-times-weekly, thanks to the award of three additional flights covered by a code share agreement with Rossiya (SDM). It also flies daily to Moscow Sheremetyevo in cooperation with Aeroflot (ARO). (FIN) CEO, Jukka Hienonen recently said that there are 13 Russian cities with more than >1 million people that (FIN) would like to serve, if it can secure permission. "Of course we can't fly to all of them, and it still isn't easy for us to get more traffic rights into Russia," he said.

August 2007: Ilyushin Finance Co (IFC) reached several leasing and purchase agreements at the "(MAKS)" air show, outside Moscow, according to press reports from Russia. It signed leasing agreements for six Tu-204-100s with Red Wings Airlines (RWZ) (15 years worth $250 to $350 million, according to conflicting press reports) and for six An-148s with GTK Rossiya (SDM). Deliveries to both carriers are scheduled to start next year. (SDM) signed a Memo of Understanding (MOU) with (IFC) for the purchase of an additional six An-148s and one Il-96-300. Russian Transportation Minister, Igor Levitin told the "ITAR-TASS" news agency, that it was "the first contract in Russia to purchase an An-148." The Il-96 is valued at $75 million while an An-148 is worth $22 million, Reuters reported. According to "RIA Novosti," state-owned (SDM) currently operates two Il-62s, four Il-86s, 21 Tu-154Ms, two Tu-154Bs, three Tu-214s, nine Tu-134As, four Yak-40s, five 737-500s, and four A319s.

(IFC) also reached agreement with Iran Air Tours (IRN) for the sale of five Tu-204-120Cs, "ITAR-TASS" reported, while "RIA Novosti" said (IFC) will deliver three An-148s and two Tu-204s to Aviaimport of Cuba (CUB) under the terms of an (MOU).

Il-96-300 (2147483647, RA-67257), delivery.

September 2007: Started merger talks with (KMV) - Kavkazkie Mineralnye Vody.

January 2008: Lufthansa (DLH) Systems signed an eight-year contract with Rossiya (SDM) for the implementation and use of the ProfitLine/Yield revenue management solution and ProfitLine/Price pricing solution.

A320-212 (525), (ILF) leased, ex-(D-AKNX), of GermanWings (RFG).

February 2008: Rossiya (SDM) will lease three 767-3Q8ERs, ex-Skymark Airlines (SKM) from (ILFC) (ILF). The airplanes will enter service in March, September, and November.

March 2008: Rossiya Airlines (SDM) carried 366,681 passengers in January and February combined, up +13.1% over the year-ago period. Domestic passenger numbers climbed +2.7% to 188,809, and international rose +26.9% to 177,782. The airline carried 3.2 million passengers in 2007.

Frontier Airlines (FRO) reached agreement to sell two of its 49 A319-111s (1761, VP-BIT), ex-(N909PR) and two of its 11 A318s to VTB Leasing, which in turn will lease them to (SDM). SkyWorks Leasing arranged the sale.

April 2008: 767-3Q8ER (29390, EI-DZH), ex-Skymark Airlines (SKM), (ILF) leased - - SEE ATTACHED PHOTO - - "SDM-767-3Q8ER-APR08".

May 2008: Rossiya Airlines (SDM) is Russia's third largest airline providing extensive scheduled passenger and cargo services out of St Petersburg and Moscow, and also VIP flights on behalf of the Russian government, including operation of the Presidential airplanes. Some of the airplanes in the fleet are used by Aeroflot (ARO).

Employees = 6,600.

(IATA) Code: FV - 948. (ICAO) Code: SDM - (Call sign - RUSSIA).

Parent organization/shareholders: Russian Government (100%).

Main Base: St Petersburg Pulkovo airport (LED).

Hub: Moscow Vnukovo airport (VKO).

July 2008: A former Skybus Airlines (SKS) A319-112 (1853) acquired earlier this year from Air Canada (ACN) is going to a special purpose company affiliated with VTB Leasing, Moscow. After interior modifications, that airplane will be placed on long-term lease with Rossiya Airlines (SDM).

August 2008: The city of St Petersburg is soliciting bids from companies interested in buying the right to operate Pulkovo airport (LED). St Petersburg as Vladimir Putin’s home city, is Russia’s second largest after Moscow. Prior to 2006, the airport controlled Pulkovo Airlines (STG), which subsequently merged with Moscow-based Rossiya Airlines (SDM) and adopted its name. From St Petersburg, (SDM) now serves roughly 70 cities in Russia, 20 in nearby ex-Soviet nations and another 35 in Europe and the Middle East. Its domestic traffic actually fell -1% (year/year) but total traffic grew +14% (RPK) as international volumes soared +33%. According to the Official Airline Guide (OAG), (SDM)’s busiest St
Petersburg markets, by seats scheduled for September, are Moscow,
Antalya, Helsinki, and Sochi.

September 2008: Rossiya Airlines (SDM) is the top airline at St Petersburg Airport, which in January through July 2008, handled 1.9 million domestic passengers and 2.1 million international passengers, for a total 4.0 million. This gave the airport a ranking of 4th highest in Russia, with the others (in millions) being: 1. Moscow (DME) 11.9; 2 Moscow (SVO) 8.6; 3. Moscow (VKO) 4.6; 5. Yekaterinburg 1.4; 6. Novosibirsk 1.1; 7. Kaliningrad 1.0; 8. Sochi 0.9; 8. Krasnodar 0.9; 10.0 Samara 0.8.

October 2008: The Russian government is moving ahead with forging a state-owned airline alliance to replace defunct AiRUnion , with the first board meeting of the new nine-carrier grouping scheduled for November 11. The company will be 51% owned by Russian Technology Corp, a source close to the negotiations confirmed, with "Russia Airlines" (or some derivative thereof) reportedly the preferred name. RIA Novosti reported that the Moscow city government will hold the remaining 49%.

Russian Technology head, Sergei Chemezov told reporters that the new alliance "could announce its registration and establishment" at the November 11 meeting. Moscow Mayor, Yury Luzhkov said the carrier will be based in the capital. City-owned airline Atlant-Soyuz (AXX) will be a key constituent of the new group. KrasAir (ZXD), Domodedovo Airlines (DOD), and Rossiya Airlines (SDM) are other potential members.

The new alliance created and controlled by the state and Russian Technologies (RT) to replace AiRUnion will comprise 10 regional airlines, be registered as a public corporation and eventually be called something other than Russia Airlines (a working name), (RT) head Sergei Chemezov told journalists, "The Moscow Times" reported. Moscow Vnukovo will be the carrier's principal base, with the Moscow city government holding the remaining 49% of the new company. It also will have bases in St Petersburg, Krasnoyarsk, and Khabarovsk. According to Kommersant, the 10 carriers are Atlant-Soyuz (AXX), (SDM), Kavminvodyavia (KMV), Orenburg Airlines (ORB), Saratov Airlines (SOV), Vladivostok Avia (VLK), Dalavia (KHV), and former AiRUnion members KrasAir (ZXD), Domodedovo Airlines (DOD), and Samara (SMR). Director General nominee, Vitaly Vantsev said the airlines will begin codesharing in the upcoming winter schedule. He also said Atlant-Soyuz (AXX) and Vnukovo are negotiating with the government on reimbursement of RUB2 billion/$74.3 million spent transporting AiRUnion passengers, "Kommersant" reported.

Director General nominee Vitaly Vantsev, a Vnukovo International Airport executive, told RIA that the company will operate a fleet of 150 airplanes and plans to buy up to 30 Sukhoi Superjet 100s.

November 2008: "Rosavia" is the official name of the new state-owned, Moscow-based airline, comprising 10 regional carriers (AXX), (SDM), (KMV), (ORB), (SOV), (VLK), (KHV), (ZXD), (DOD), (OMK), & (SMR), including the remnants of the AiRUnion alliance. Moscow Mayor, Yury Luzhkov said Rosavia "will be a large, serious company with a powerful potential and will rival Aeroflot (ARO)," "Interfax" reported.

December 2008: Russia's treasury is set to provide RUB30 billion/$1.08 billion in soft loans to the air transport industry to help it through the current credit squeeze. Last month, the government established a state-backed dedicated relief facility to finance the working capital needs of a few major airlines. According to sources, the five carriers that transport more than >1 million passengers per year, with at least half on scheduled flights, are eligible to receive funds. The recipients identified to date by First Deputy Prime Minister Igor Shuvalov are Aeroflot (ARO), newly formed Rosavia ((AXX)/(SDM)/(ZXD)), and Transaero (TRX), a private operator of Russia's largest long-haul fleet. KD avia Director Business Development Mikhail Baskov said that his airline also is on the list given its role in serving the Kaliningrad exclave. "We firmly count on receiving up to RUB4 billion at an affordable interest rate," he said.

Rosavia, the successor to the defunct KrasAir (ZXD)-led AiRUnion alliance, has applied for RUB5 billion to carry it through its formation and allow it to maintain operability and meet growth rate targets in 2009.

The government made a decision in principle to subsidize carriers that provide domestic air services to remote regions, with particular recipients still to be selected. At the same time, civil aviation agency, Rosaviatsiya plans to tighten supervision over airlines' financial and operational performance. "We'll request them to report results before each summer and winter season," Deputy Chief, Vladimir Chertok said. "If results worsen grossly, we'll consider suspending or annulling air licenses."

2 A319-112s (1863; 1876), VTB Leasing bought from Frontier Airlines (FRO) for Rossiya (SDM).

January 2009: SEE ATTACHED PHOTO - - "SDM-737-548-JAN09" which shows the airplane operating a ski-charter flight to Salzburg, Austria.

February 2009: Russia's Federal Anti-monopoly Service (FAS) is intent on abolishing overflight fees charged to foreign airlines, which traditionally benefit Aeroflot (ARO). (FAS) Director, Igor Artemyev told reporters that his agency has prepared a relevant draft decree to be submitted for government approval shortly. Since the late 1970s, foreign operators have been paying pro-rate charges for transiting airspace over Siberia on routes between Europe or North America and Asia. Under this practice, Aeroflot (ARO) receives substantial additional revenue, which industry experts estimate at $200 to $400 million per year. "We don't mean to harm Aeroflot (ARO) in any way, but that system of imposing feudal royalties is an absurdity and should be eliminated," Artemyev said.

Discussing the matter with Russian counterparts in 2005, European aviation authorities claimed that payments for rights to fly on trans-Siberian routes cost (EU)-based carriers more than >€250 million annually. Founders of newly formed aviation holding, Rosavia also are lobbying against overflight charges, citing the advantage gained by Aeroflot (ARO), which Rosavia is designed to rival. The Transport Ministry, however, is opposed to scrapping the charges in the short term. Minister, Igor Levitin told reporters that the fees should remain in place at least until after 2014, when Russia will host the Winter Olympics in Sochi.

AirBaltic (BAU) and Rossiya (SDM) expanded their code share agreement to cover (BAU)'s Riga - St Petersburg, Riga - Kaliningrad and Kaliningrad - Copenhagen flights.

March 2009: Reports from Russian media sources say the new mega-airline called "Rosavia" — not to be confused with Rossiya (SDM), won’t take flight until after the summer at the earliest.
Rosavia is being cobbled together from a slew of bankrupt, ill-financed or otherwise unstable outfits from throughout Russia’s
highly fragmented airline industry.

Rossiya (SDM) took delivery of two leased 128-seat A319s. It expects to add eight more A320 family airplanes by year end.

April 2009: Russian Technologies (RT), the state-owned controller of the newly established, Moscow Vnukovo-based "Russia Airlines" (or "Rosavia") plans to order 150 to 200 airplanes starting next year, (RT) head, Sergei Chemezov said, according to "Reuters." According to Chemezov, "Boeing (TBC) has promised to help us find credit in the USA. From next year, we would like to start buying airplanes . . . The most important question is where [we can] get the money."

June 2009: A319-111 (1863, VQ-BAS), ex-Montreal (YMX).

July 2009: First flight of An-148-100B (40-03, RA-61701), to be delivered to Rossiya (SDM) - - SEE PHOTO & ARTICLE - "SDM-AN-148-2009-07."

October 2009: The new high-speed “falcon” train will cut the Moscow - St Petersburg journey to less than four hours.

February 2010: The Russian government announced plans to merge a series of smaller airlines, including St Petersburg-based Rossiya (SDM), into Aeroflot (ARO). Russian Transport Minister, Igor Levitin said the consolidation would lift (ARO)'s domestic market share to 30% to 35% from 15% to 20%, according to "RIA Novosti." Other carriers involved are Kavminvodyavia (KMV), Orenburg Airlines (ORB), Vladivostokavia (VLK), Saratov Airlines, and Sakhalin Airlines (SKH), according to "ITAR TASS." They originally were to be combined in a new state-owned carrier called Rosavia, plans for which now have been shelved.

Rossiya (SDM), Kavminvodyavia (KMV) and Orenburg Airlines (ORB), three of the six airlines scheduled to be combined with Aeroflot (ARO) under a Russian government plan announced this month, will be transitioned from state-owned enterprises into joint stock companies prior to the merger, "The Moscow Times" reported. The other three, Vladivostokavia (VLK), Saratov Airlines and Sakhalin Airlines (SKH), already are joint stock companies. Transport Minister, Igor Levitin said the stake sales will occur this year. He said the move is "compatible with the anti-monopoly regulations."

June 2010: Rossiya Airlines (SDM) successfully passed its second (IATA) Operational Safety Audit (IOSA).

July 2010: Estonian Air (ENA) will increase four-times-weekly, Tallinn - St Petersburg service (operated by Rossiya - Russian Airlines (SDM)) to five-times-weekly, August 3 and six-times-weekly September 2.

August 2010: Aeroflot (ARO)) is now taking over control over the airlines previously owned by Rostekhnologii that were supposed to be merged under the "Rosavia" brand. The Rosavia merger project has now been cancelled, but Rostekhnologii has ordered 50 737NG airplanes (and 15 options) regardless, that will then be leased to (ARO) and its new subsidiaries. (ARO) is planning to continue to operate the airlines under separate certificates and brands for now, similar to its subsidiaries, Donavia (DAU) and Nordavia (AEN) and has not yet published any final plan on what role the new subsidiaries will play, although it has indicated some of them might be turned into low-cost or charter carriers. The airlines included in the deal are (KMV) - Kavkazskie Mineralnye Vody, Orenair (ORB), Rossiya (SDM), Saravia, SAT Airlines (SKH), and Vladivostok Air (VLK) that are all under full or majority control of Rostekhnologii. Earlier this year, (ARO) also acquired the remaining 49% in Nordavia (AEN) held by Aviainvest and it now also controls 100% of the Northern Russian regional carrier. (ARO) and Rossiya (SDM) have already entered into a code share agreement on a wide range of domestic routes.

September 2010: Rossiya Airlines (SDM) carried 1.36 million passengers during the first half of this year, a +11.1% rise over the first six months of 2009. (SDM) had a rise in both international (+14.5%) and domestic traffic (+8.2%) (RPK)s, despite operating the same number of flights, meaning load factors have risen.

(SITA) signed a 5-year contract with St Petersburg's Pulkovo Airport to provide its Airport Connect agent and self-service check-in platform. The deal includes installation of 100 new workstations and five CUSS kiosks, as well as modernization of existing airport infrastructure. The airport is served by more than >70 domestic and international airlines.

October 2010: A320 (VQ-BDR) sixth received, (GECAS) (GEF) leased to be used on the popular tourist routes to Dubai, Goa, and Ovda, as well as European cities and several domestic destinations. Will receive its 6th An-148-100V before the end of the year.

November 2010: Construction has started on Phase 1 of an €800 million/$1.05 billion development program at Pulkovo Airport, which serves St Petersburg, Russia. A ceremony on November 24 was attended by Russia's Prime Minister, Vladimir Putin; Klaus-Dieter Scheurle, Parliamentary State Secretary in the German Ministry of Transport, and officials of the Northern Capital Gateway consortium, which is supporting the development. A new terminal is scheduled to be completed by the end of 2013. Other projects include expanding aprons, modernizing infrastructure and building a hotel and business center near the airport. Fraport AG, the parent of Frankfurt Airport, assumed the Pulkovo concession eight months ago and manages operations. It has a 35.5% holding in the Northern Capital Gateway consortium. Other consortium participants are VTB Bank, 50%; Cypriot Investor Kolseva Holdings Ltd, 7.5%, and the Copelouzos Group of Greece, 7%.

August 2011: Air France (AFA) is now code sharing with Rossiya (SDM) on the Paris (CDG) - St Petersburg route served by both (AFA) and (SDM).

Finnair (FIN) Engine Services inked a four-year engine maintenance and repair agreement with Rossiya Airlines (SDM), which covers the (CFM56-5B) engines on (SDM)’s A319/320 airplanes.

October 2011: Monarch (MON) Aircraft Engineering signed a line maintenance technical handling agreement with Rossiya Airlines (SDM). It will support (SDM)'s 767-300 airplanes.

November 2011: Russian state corporation Rostechnology has completed the asset transfer of five regional carriers to Aeroflot (ARO), in a previously announced deal worth RUB2.5 billion/$81 million.

(ARO)’s sister company, Aeroflot-Finance, received 52.156% of Vladivostok Avia (VLK), 51% of Saravia Airlines, 75% minus one share of Rossiya Airlines (SDM), 100% of Yuzhno-Sakhalinsk-based SAT Airlines (SKH) and 100% of OrenAir (ORB). Rostechnology received 3.55% of Aeroflot (ARO) shares.

In 2010, the Russian government decided (ARO) would get six airlines belonging to Rostechnology. The sixth carrier, Mineralnye vody-based KMV (KMV), ceased operations this summer and became a part of Donavia (DAU), which is also an (ARO) sister company. (ARO) has announced plans to re-brand at least some of the airlines and to replace their remaining old generation Russian airplanes by A320 family or SSJ 100 airplanes.

According to an (ARO) statement, the group plans to take 45.5% of the market by 2025. Transport Clearing House VP, Marina Bukalova said the company has nearly reached this target. During the first nine months of 2010, (ARO) and its two sister companies (Donavia (DAU) and Nordavia (AEN)) had 30% of the market share. During the first nine months of 2011, (ARO) (with (DAU), (VLK), Saravia, (SDM), (SKH) and (ORB), excluding (AEN)) had a 40% of the market.

During the same period in 2011, the S7 Group (S7 Airlines (SBR) and Globus (WEG)) had a 13% share, Transaero (TRX) 12%, UTair Group (UTair (TYU) and UTair-Express), 10%. All together, the four biggest airline groups have a 75% share. Bukalova said the continuing monopolization and declining competition will have a negative effect on the market.

Aeroflot (ARO) has signed a memorandum of understanding (MOU) with Russian state corporation Rostechnology to lease 50 Boeing (TBC) 737 NGs, the two companies announced. The airplanes, which were ordered in 2010, will be leased to (ARO) by Aviation Capital Services, a leasing subsidiary of Rostechnology. Delivery is expected from September 2013 through 2017.

(ARO) said it will receive 737-800 and 737-900 modifications, although details were not released. Earlier it was forecasted that the 737s might modernize (ARO) regional subsidiaries’ fleet but after the (MOU) announcement, an (ARO) representative said part of the airplane order will be operated solely by (ARO).

Over the past several years, the carrier has grown its narrow body fleet with A320 family airplanes, which now numbers more than >70.

In 2008, Rostechnology decided to create a new airline, Rosavia, combining several regional Russian carriers (Vladivostok Avia (VLK), Saravia Airlines, Rossiya Airlines (SDM), SAT Airlines (SKH) and OrenAir (ORB) and KMV (KMV).

A year later, the corporation announced the tender for narrow bodies for the new carrier but the airline project failed before Rostechnology signed the deal. It was decided to sell the regional carriers to (ARO). (KMV) ceased operations in the summer and Saravia was sold at the end of 2011.

Among the other subsidiaries, the largest 737 fleet is operated by (ORB), which now has five 737 Classics and 14 737-800s. (SKH)’s fleet includes three 737 Classics. St Petersburg-based (SDM) also operates five 737-500s but (SDM) has already announced it will take these airplanes out of service in the near future. (ARO) subsidiary, Donavia (DAU), which was launched before the deal with Rostechnology, will receive 10 737s.

January 2012: Rossiya (SDM) has launched weekly, A319-100 service from St Petersburg to Bukhara on September 13. It is planning to add three additional A319-100s in the first half of 2012 and six additional An-148-100s between 2012 and 2014, allowing it to retire its 737-500 fleet by 2013.

February 2012: Russian airlines carried 64.1 million passengers in 2011, a +12.6% increase over 2010. International passengers rose +13.2% to 31.4 million; domestic passengers increased +12% to 32.7 million.

Aeroflot (SU) carried the most passengers, at 14.2 million, up +25.6%. Transaero Airlines (TRX) carried 8.5 million passengers, up +27.2% year-over-year. UTair (TYU) reported 5.8 million passengers carried, up +31.3%. S7 (SBR) Group, which includes Sibir (SBR) and Globus (GLP), carried 6.6 million passengers in 2011, up +11.4%. Rossiya Airlines (SDM), which will soon be part of the (ARO) group, carried 3.5 million passengers. The overall share of the market’s five biggest airlines increased from 53.1% to 57.9%.

Despite stable growth and positive passenger numbers in the Russian market, experts say the overall airline economy in Russia deteriorated in 2011. Load factor decreased one point to 77.2% LF. Load factor on international routes fell -0.7 point to 81.1% LF.

The number of Russian carriers decreased from nearly 160 to 126. In 2011, Russian aviation authorities withdrew 37 air operators’ certificates (AOC), including Avianova (ANV) and Sky Express (SEX).

May 2012: The Russian Federal Air Transport Agency, Rosaviatsia announced it will spend RUB219.4 million/$7.2 million to subsidize five carriers that service Kaliningrad (KGD) – Moscow and (KGD) – St Petersburg routes. The program runs through September 15.

Aviation authorities signed contracts with five carriers that take part in the program (Aeroflot (ARO), Rossiya Airline (SDM), S7 Airlines (SBR), UTAir (TYU) and Ak Bars Aero.

Last year, the government spent RUB138 million to subsidize these routes.

Kaliningrad is a Russian exclave situated on the west of the country and does not border the main territory. It is surrounded by Poland and Lithuania.

Rossiya Airlines (SDM) starts flying from St Petersburg Pulkovo Airport to Kazan.

August 2012: Il-96-300PU (7439202020, RA-96020), delivery.

September 2012: Aeroflot (ARO) appears to have shelved plans for subsidiary carrier, Rossiya (SDM) to double its Antonov An-148 fleet, following a hike in the twinjet type's catalogue price. Following the delivery of six domestically built An-148s, (SDM) had been in talks to specify technical terms, with the aim of firming up an order for a further six.

The final decision depended on endorsement from the enlarged Aeroflot (ARO) Group, into which Rossiya (SDM) was integrated in 2010. But Aeroflot (ARO) Director General, Valery Saveliev indicates that the management cannot avoid taking steep pricing into account. "From the operating standpoint, they have proven to be sound airplanes," he said. "The price (SDM) originally paid was perfectly adequate in terms of value for money. We would have considered acquiring a further six An-148s, had their price not risen sharply. Therefore, we've put a stop to that plan."

(SDM) Director, Sergey Belov says airframer (VASO) has retroactively raised prices for the An-148s already in service with (SDM). But United Aircraft argues that (VASO) has to cope with high production costs. Vice President, Alexander Tulyakov said: "There are large overheads, with heating costs alone weighing in a lot."

A319-111 (1753, EI-ETP), ex-(B-2339), CIT Group (TCI) leased.

October 2012: Rossiya Airlines (SDM) inaugurated services on the route from St Petersburg (LED) to Nukus (NCU) on 26 September. Flights to Nukus, which is located in western Uzbekistan and recently saw the launch of Ural Airlines (URL)’s service to Moscow, are offered with weekly frequencies using A319s. Initially, there will be no competition on the route, although Uzbekistan Airways (UZB) is scheduled to enter the market with also single weekly frequencies as soon as 28 October. (SDM), which has been closely tied with Aeroflot (ARO) since 2010, now operates to nine Uzbek destinations from St Petersburg, providing a total of 16 weekly frequencies.

November 2012: Russian airlines carried 57 million passengers during the first nine months of the year, up +15.2% over the year-ago period, Russian Federal Air Transport Agency/Rosaviatsia said.

International traffic rose +22.2% to 29.9 million passengers and domestic traffic increased +8.3% to 27 million. Load factor was 79.4% LF, up +1.6 points year-over-year. The total market share of Russia’s five biggest airlines increased to 62.4% from 56.4%.

Russia’s biggest airline, Aeroflot (ARO), carried 13.3 million passengers, up +26.1% over the year-ago period. Transaero Airlines (TRX) carried 8.07 million passengers, up +23.1%. UTair (TYU) carried 5.9 million passengers, up +43.1%. Sibir (SBR), which is working under the S7 Airlines (SBR) brand, said it transported 4.8 million passengers, up +24.3%. St Petersburg-based, Rossiya (SDM) reported carrying 3.36 million passengers, up +23.9%.

(TRX) launched weekly 737 services from Moscow Vnukovo to Astana (TSE) and Almaty (ALA) on November 2. (TRX) also operates daily, Moscow Domodedovo (DME) - (TSE) and (DME) - (ALA) 737 and 767 services.

December 2012: While Aeroflot (ARO) alone made a +$114 million net profit over the first half of 2012 (a -65% fall on the previous year's figure) this was effectively wiped out at group level by the accumulated losses of its subsidiary airlines. Vladivostok Avia (VLK), Rossiya (SDM) and Orenair (ORB) generated combined net losses of -$108 million over the first six months of this year, says Aeroflot (ARO).

Rossiya (SDM) suffered the heaviest operating losses, -$56 million, while Vladivostok Avia (VLK)'s reached -$34 million.

March 2013: Rossiya Airlines (SDM) expanded its offering to the southern French city of Nice (NCE) on 4 March, when it launched thrice-weekly services from Moscow Domodedovo (DME). (SDM), which already flies twice-weekly to Nice from St Petersburg, plans to increase frequencies on both routes, to daily and thrice-weekly, respectively, in May. Flights on the new route are operated using A319s.

April 2013: Aeroflot (ARO) reported 2012 net income of +$166 million, down -66% from the year-ago period. (ARO) said the profit drop was due to 2011 share sales in several subsidiaries, including Moscow Insurance Company, Nordavia Airline (AEN) and Sheremetyevo Refueling Complex, among others. Also, in 2012, (ARO) included data from its subsidiaries; (ARO) said not all subsidiaries are profitable, but it did not specify which were loss-making.

Several carriers in different Russian regions joined (ARO) at the end of 2011, including Saint Petersburg-based, Rossiya Airlines (SDM), OrenAir (ORB), Vladivostok Avia (VLK) and SAT Airlines (SKH) in Russia’s Far East.

Aeroflot (ARO)’s 2012 revenue rose +51% year-over-year to $8.13 billion. Revenue from the core business increased +59% to $7.1 billion due to passenger growth. In 2012, (ARO) carried 17.7 million passengers, up +24.6% from 2011.

Rossiya Airlines (SDM) expanded its domestic offering from St Petersburg (LED) on 25 April, as it inaugurated flights on the 1,100 km route to Syktyvkar (SCW), the capital of the Russian Komi Republic. Daily departures are now offered on the route and operated using 68-seat Antonov 148-100Bs. Competition in the market from St Petersburg to Syktyvkar comes from UTair (TYU) and Nordavia (AEN), which serve the destination with six and four weekly flights, respectively.

May 2013: Rossiya Airlines (SDM) has completed its fleet renewal program. (SDM) in April took delivery of an A319, which became its 25th airplane from Airbus (EDS). From October 2012 through April 2013, (SDM) has taken delivery of seven A319/320s, replacing its fleet of five 737-500s.

(SDM)’s fleet now comprises 16 A319s, nine A320s, three 767s and six Antonov An-148s. (SDM) has lease agreements with (CIT) Aerospace (TCI), (GECAS) (GEF), (ILFC) (ILF) and Russia’s (VTB)-leasing.

Industry experts say the company, which has a moderate-growth strategy, does not have aggressive fleet expansion plans.

In 2011, Rossiya became a member of Aeroflot (ARO), which makes fleet decisions for the carrier. Last year, (ARO) decided not to turn options for nine additional An-148s into firm orders. It will replace existing An-148s, but has not decided which airplane type to order.

An-148-100EA (42-07, RA-61720), operated by Special Flight detachment.

October 2013: Saint Petersburg’s Pulkovo International Airport has begun testing its new international passenger terminal, which is set to open on December 4. The testing process, which runs through November 21, uses 5,200 volunteers to play the role of passengers to simulate the airport’s standard ground operations.

Construction of a new international passenger terminal started in 2010. It is part of a €1.2 billion/$1.6 billion investment program by the Northern Capital Gateway consortium to renovate the airport and construct the new terminal with the aim of increasing capacity to 17 million passengers per year. Pulkovo-1 reconstruction will be finished in 2014.

The private consortium comprises Fraport AG (35.5%), (VTB) Bank of Russia (50%), Cypriot investor Koltseva Holdings Ltd (7.5%) and the Greek Copelouzos Group (7%).

Saint Petersburg-based Rossiya Airlines (SDM), a member of the Aeroflot (ARO) group, will transfer all of its flights to the new terminal from Pulkovo-1 and Pulkovo-2 on the day of terminal opening. Rossiya (SDM) is the fifth largest Russian airline. During the first eight months of 2013, (SDM) carried 3.11 million passengers, up +6.9% compared to the same period in 2012.

November 2013: Fokker Services, part of Fokker Technologies, and Rossiya Airlines (SDM) have concluded an agreement covering the introduction of the Fokker Services’ Electronic Flight Bag (EFB) solution for iPad® on (SDM)’s A320 and 767 fleet.

The Fokker Services (EFB) solution for iPad® is a Class 2B, (EASA)-certified installation including mounting and power supply. Its simplicity allows the advantages of an (EFB) to be achieved at a fraction of the cost and downtime of other solutions currently being offered. The solution brought Fokker Services the "Aviation Week" award for “Most Innovative Maintenance Repair & Overhaul (MRO) in 2013”.

Rossiya Airlines (SDM) and Fokker Services have reached an arrangement for implementation of the (EFB) solution for iPad® on (SDM)'s entire fleet. This will provide savings in weight, as well as enhanced accessibility of information and performance data. Vladimir Ershov, Deputy Director General of Operations at (SDM), “Rossiya Airlines (SDM) as one of the main users of an (EFB) in the Russian Federation is very enthusiastic about the (EFB) solution for iPad® offered by Fokker Services. It provides a simple, fully approved solution able to be implemented quickly and cost-effective. The Installation of the (EFB) solution for iPad® became the first step towards equipping our fleet with (EFB) technology”.

“We are very pleased with the (SDM) order, being another customer in Russia for our (EFB) solution for iPad®. Fokker Services has, since the successful introduction of the (EFB) solution for iPad®, secured orders for more than >400 airplanes. This includes regional, narrow and wide body Airbus (EDS), Boeing (TBC), Bombardier (BMB) and Fokker airplanes,” said Heino van der Laan, VP Marketing & Sales at Fokker Services.

The Fokker Services (EFB) solution for iPad® covers not only the hardware to mount and power the iPad®, but also the associated certification and supporting data, such as manual supplements, to ensure that airworthiness compliance can be demonstrated.

December 2013: Aeroflot (ARO) plans to move flights operated by its subsidiary, Rossiya ((IATA) Code: FV, based at St Petersburg) (SDM) to wet-leases with effect from March 30, 2014. All of Rossiya (SDM)'s routes from St Petersburg (including numerous domestic Russian routes as well as routes to Western Europe, the Mediterranean, Eastern Europe, the (CIS), and Israel) are to be operated under Aeroflot (ARO)'s SU flight numbers from the beginning of the (IATA) summer timetable. The majority of all flights operated by subsidiaries Donavia ((IATA) Code: D9, based at Rostov) (DAU) and Aurora ((IATA) Code: HZ, based at Yuzhno-Sakhalinsk) (URR) already operate using SU flight numbers.

St Petersburg's Pulkovo airport has opened its new main passenger terminal in a bid to become a major hub in northwest Russia. On December 4th, the locally based Aeroflot (ARO) subsidiary, Rossiya Airlines (SDM) performed three rotations to Germany from the new facility, which will eventually accommodate all operations that are carried out from Pulkovo's terminals 1 and 2.

Consortium Northern Capital Gateway, which handles the airport development under a 30-year concession, completed the construction project in three years at a cost of €1.2 billion/$1.6 billion. General Director, Sergei Emdin said the unified terminal is part of a plan to create one of the largest hubs in the Baltic region. "It will help expand the airport's catchment area [and] flight geography, boost traffic and contribute to economic growth in northwest Russia."

While incorporating the two existing terminals, the complex offers 2.5 times the floor space: 140,000 m2. There are 88 check-in counters and 110 passport and customs control booths, as well as seven high-speed baggage-handling systems. The project also includes expansion of apron and taxiway areas to 450,000 m2 from 250,000 m2. On the landside, it is accompanied by a four-star hotel, a business center and a multi-level parking lot.

January 2014: Rossiya Airlines (SDM) will transfer all flights to Aeroflot (ARO) commercial management from the 2014 (IATA) summer season. All Rossiya (SDM) flights will be operated under Aeroflot (ARO)’s (SU) code after March 30, when the airline stops using its (FV) code. (SDM) said the unified booking platform will simplify the booking process and cut costs. Also, (SDM) will receive additional profit from selling tickets for all (ARO) subsidiaries, but will lose financial independence.

In November 2011, (ARO) received 75%, minus one share, of Rossiya Airlines (SDM) from Rostekhnologii (Rostec), a state corporation controlled by the Russian Federation, together with shares of four other regional carriers. Aeroflot (ARO) turned under its management OrenAir (ORB), sold Saravia Airlines, and created Aurora Airlines (AAZ) from Vladivostok Avia (VLK) and SAT Airlines (SKH) in the Far East.

Russian authorities have approved the new Terminal 1 for Saint Petersburg Pulkovo International Airport, providing it meets all technical requirements. Terminal 1 officially opened December 4, 2013 after a two-month “testing program.”

The airport had already announced that from February 1, several Russia’s carriers (including S7 Airlines (SBR), UTair (TYU), Transaero (TRX), OrenAir (ORB)) will transfer all domestic flights to the newly opened terminal.

Rossiya Airlines (SDM) has transferred several flights there, including flights from Saint Petersburg to several cities in Germany, but because of procedural violations discovered by authorities, the Federal Environmental Industrial and Nuclear Service (Rostechnadzor) refused to issue confirmation documents.

Since early December, Terminal-1 operations were called “testing” and carriers could not transfer more flights.

Pulkovo Airport is operated by Northern Capital Gateway Company Construction of the new international passenger terminal started in 2010. It is part of a €1.2 billion/$1.6 billion investment program by the Northern Capital Gateway consortium to renovate the airport and construct the new terminal with the aim of increasing capacity to 17 million passengers per year.

Il-96-300VPU (202021, RA-96021), operated by Special Flight Detachment.

March 2014: Rossiya Airlines (SDM) has become the first carrier in Russia to distribute Apple iPads equipped as electronic flight bags (EFB) for pilots (FC), who are able to use them during all phases of flight (including takeoff and landings). Rossiya (SDM) launched the project after it won approval from the aviation administration in the beginning of February. It started equipping its Airbus A319/320 airplanes.

August 2014: A320-214 (2163, VP-BWI), ex-(F-WWBD), (GEF) leased.

March 2015: News Item A-1: The Aeroflot Group reported a full-year net loss of -RUB17.1 billion/-$274.6 million as of December 31, 2014, reversed from a net profit of +RUB7.33 billion in the year-ago period. The results are reported in accordance with International Financial Reporting Standards (IFRS). “In the second half of 2014, Russian air carriers faced serious external challenges, the major ones being a significant depreciation of the ruble and the resulting fall in consumer demand and downturn in the international travel market, which affected the annual financial results of the Group,” (ARO) deputy (CEO), Shamil Kurmashov said.

Revenue rose +9.9% year-over-year to RUB319.8 billion. Scheduled flights revenue increased +10% to RUB253.6 billion, while charter flights revenue decreased -12.5% to RUB15.02 billion, due to a decline in international traffic.

In 2014, the Aeroflot Group carried 17.1 million passengers on international routes, down -1.7% from 2013. The number of passengers on domestic routes rose +26% to 17.64 million. The total number of passengers increased +10.7% 34.7 million.

“In particular, in December the Group’s passenger traffic was up by +16% on the back of a +35.5% increase in passengers on domestic flights. Passenger traffic dynamics was the main driver of revenue growth that amounted to 9.9% in 2014,” Kurmashov said.

Operating costs increased +13.8% to RUB308.5 billion. Airplane fuel increased +10.2% year-over-year to RUB87.2 billion. “This increase is driven by the dynamics of oil and jet kerosene prices and weakening of the ruble, as well as an increase in the Group’s traffic volume, fleet expansion and addition of new routes. Airplane servicing and passenger services costs amounted to RUB61 billion, up +15.6% from 2013. This increase is primarily due to the change in the ruble’s exchange rate against foreign currencies (+7.7%), expanded scale of operations and traffic volume (+ 3%), and the change in service rates (+4.9%),” the group said.

The Aeroflot Group includes the biggest Russian carrier (ARO) as well as several subsidiaries including Donavia (DAU), OrenAir (ORB), Rossiya (SDM), Pobeda (PBD), and Aurora (AAZ).

News Item A-2: Rossiya Airlines (SDM) became the 1st carrier in Russia to distribute Apple iPads for use as electronic flight bag (EFB)s for pilots (FC). In September last year, the (SDM) said (EFB)s were added to performance specifications of A319, A320 and 767 airplanes.

News Item A-3: Spanish budget carrier Vueling (VUZ) and Brussels Airlines (DAT)/(EBA) will launch flights to Saint Petersburg’s Pulkovo Airport in the (IATA) 2015 summer season, despite Russia’s international traffic decrease.

According to a Pulkovo statement, Vueling (VUZ) plans to start Malaga - Saint Petersburg Airbus A320 weekly services in May; services are expected to increase to 2x-weekly in June. (VUZ) currently operates flights to Saint Petersburg from Barcelona and Alicante.

Brussels Airlines (DAT)/(EBA) plans to launch weekly, Brussels - Saint Petersburg Airbus A319 services on March 30.

Russia’s Transaero (TRX) will launch flights to Shanghai; China Southern Airlines (GUN) plans to launch Urumqi flights and Ukrainian International Airlines (UKR) is expected to start flying from Odessa.

Aeroflot Group member Rossiya Airlines (SDM) will launch daily Saint Petersburg - Chisinau Antonov An-148 service, while Air Astana (AKZ) adds flights from Almaty and Astana. The Pulkovo-based carrier will also operate 4x-weekly A320 service to Almaty and 3x-weekly services to Astana. Rossiya (SDM) is expected to increase the frequencies at these destinations.

The airlines are increasing the number of flights despite the international traffic decrease, which is due to the change of currency exchange rates. Local airlines are also increasing the number of domestic destinations and flights. In February, Russia’s regional carrier RusLine Airline resumed regional flights from Saint Petersburg to Belgorod, Ivanovo, Kirov and Yaroslavl. Red Wings Airlines (RWZ) is expected to start flights from Saint Petersburg to Grozny, Simferopol, and Makhachkala.

News Item A-4: The Russian government will invest RUB350/$5.7 billion in the country’s airport infrastructure from 2015 - 2020. Russia’s Ministry of Transport, Maxim Sokolov said the investment will enable the reconstruction and construction of new runways at 147 airports (nearly half the airports in the country).

In 2014, 5 airports at Lipetsk, Vladikavkaz, Makhachkala, Nikolayevsk on Amur and Palana were totally reconstructed or built, according to a statement by Russia’s Federal Air Transport Agency, Rosaviatsia.

Taxiways and platforms were renewed at 4 airports in Abakan, Voronezh, Petropavlovsk-Kamchatsky, and Samara. In addition, a new airport at Iturup Island in the Russian Far East was built and opened in 2014. Construction began on the new Yuzhny International Airport at Rostov-on-Don in 2014. Airfield reconstruction at Petropavlovsk-Kamchatsky and Krasnodar will be finished and new runways will be launched at Volgograd and Samara in 2015.

According to Russian legislation, the airports can be operated by private companies but the airfields belong to the government, which invests in their renovations. Private companies can invest in the terminal infrastructure.

Sokolov said >50 Russian airports increased their traffic >20%, while the Russian airline market was up +10.2%.

April 2015: News Item A-1: Russian airlines carried 16.9 million passengers in the 1st quarter, down -2.3% year-over-year, according to Russia’s Federal Air Transport Agency, Rosaviatsia.

International traffic was down -15.6%, while domestic traffic grew +11.4% year-over-year. The decrease in international traffic is due to the change of currency exchange rates. In January - February, international traffic was down -14.5%.

In January - March, Aeroflot (ARO) carried 5.5 million passengers, up +9.8% year-over-year. Saint Petersburg-based Rossiya (SDM), an Aeroflot Group member, carried 1.035 million passengers, up +21.9% from the year-ago quarter.

Transaero (TRX) carried 2.2 million passengers, down -6% year-over-year. (S7) Airlines (SBR)’s passengers carried are also down -6% to 1.56 million. Globus Airline (GLP), a 2nd member of the (S7) Group, carried 481,251 passengers, up +24% year-over-year. Despite the number of passenger decrease of 3 out of 5 of Russia’s biggest carriers, the total market share of the top 5 airlines has increased from 66.1% to 66.9%, which is due to the closure of several small airlines.

Over the past several months, Russian authorities have suspended or canceled the air operator’s certificates (AOCs) of 8 carriers.

Financially troubled UTair (TYU) carried 1.03 million passengers for the 3-month period, down -36.1% year-over-year. To stabilize its financial situation, (TYU) has cut its fleet and network.

Traffic for Russia’s charter carriers is also down for the 3-month period. Nordwind (NWD) carried 311,016 passengers, down -59.6% year-over-year. IFly traffic was down -58.5% to 72,865. However, Royal Flight cargo charter airline increased its traffic four times year-over-year to 87,196.

News Item A-2: Rossiya Airline (SDM) has grounded a fleet of 6 Antonov An-148-100s due to decreasing passenger traffic.

News Item A-3: Rossiya Airline (SDM) is now planning to park its fleet of 3 767-300ERs as part of plans to cut costs through fleet rationalization. (SDM) said the airplanes no longer fit the Aeroflot (ARO) subsidiary's business model given their age (15.5 years on average) and relative inefficiency.

Rossiya leased the 767s from the International Lease Finance Corporation (ILFC) back in 2007.

July 2015: Aeroflot (ARO) subsidiary, Rossiya Airlines (SDM) has appointed (ARO) Deputy (CEO) Vadim Zingman as board Chairman. Zingman has been with (ARO) since 2009 and has been responsible for working with clients, service development, public and government relations.

In November 2011, (ARO) received 75% (minus one share) of Rossiya Airlines (SDM) from Rostec (a state corporation controlled by the Russian Federation) together with shares of four other regional carriers.

In March 2014, (SDM) transferred its flights under Aeroflot (ARO)’s SU code.

August 2015: News Item A-1: Rossiya Airlines (SDM) has begun supplying airport ground handling services to all Aeroflot Group carriers at Pulkovo International Airport.

(SDM) provides services to Aeroflot (ARO), Donavia (DAU) and Orenair (ORB) in the airport terminal and at the apron. This measure will allow Rossiya (SDM) to supply all group members with the same standard service. By the beginning of fall, (SDM) plans to operate the full handling cycle, including plane cleaning, check-in, airplane center-of-gravity position, and boarding.

(SDM) also supplies aircraft cleaning and equipment services for nearly 90% of carriers that operate to Saint Petersburg.

(SDM) became an Aeroflot Group member in November 2011 when Aeroflot (ARO) received 75% (minus one share) of the carrier from Rostec (a state corporation controlled by the Russian Federation) together with shares of 4 other regional carriers. In 2014, (SDM) transferred all its flights under Aeroflot (ARO)´s SU code.

In July, (SDM) appointed Aeroflot (ARO) Deputy (CEO) Vadim Zingman as board Chairman.

News Item A-2: Aeroflot ((IATA) Code: (SU), based at Moscow Sheremetyevo) (ARO) is planning to equip 2 of its subsidiaries with an undisclosed number of SSJ100-95s, (CEO) Vitaly Savelyev has told Russia's "TASS" newswire.

“I don't think it will happen this year, but we have plans for next year," he said. "We are considering 2 subsidiaries – Rossiya ((IATA) Code: FV, based at St Petersburg) (SDM) and Donavia ((IATA) Code: D9, based at Rostov) (DON).”

Earlier this year, state-backed (ARO) signed a Letter of Intent (LOI) with Sukhoi Civil Aircraft (Moscow Zhukovsky) to acquire a further 20 SuperJets with deliveries to occur by 2016. Once firmed, the order will boost (ARO)'s SuperJet order book to 50 airframes.

In a bid to ease a foreign currency crunch and to stimulate local industry, the Russian government has committed itself to weaning Russia off its dependence on Western-manufactured airplanes.

In March, Moscow announced it would inject RUB100 billion/USD1.9 billion into Sukhoi (SSJ)'s parent firm, the United Aircraft Corporation (UAC), to help spur the production of the SuperJet while moving to recapitalize the State Transport Leasing Company (GTLK) to the tune of RUB30 billion/USD469 million.

In June, (GTLK) announced it had secured placements for 32 Superjets (15 with Yamal Airlines ((IATA) Code: YC, based at Salekhard) (LLM), 15 with Kazakhstan's Scat ((IATA) Code: DV, based at Shimkent) (VSV) and 2 with an undisclosed operator) it had bought using the funds which were extended to it in the form of tied-loans.

October 2015: "Aeroflot Receives 56 International Routes from Transaero" by (ATW) Polina Montag-Girmes, October 26, 2015.

Russian authorities have canceled 141 of the defunct Transaero Airlines (TRX)’s international route designations and have transferred 56 of them to Aeroflot (ARO) and subsidiary Rossiya Airlines (SDM). The designations, which took effect October 22, are approved for one year and may be extended.

The Aeroflot Group is also planning to employ 6,060 people out of Transaero (TRX)’s staff. It said 2,765 employees will be able to get a job at Aeroflot (ARO), while the others will be offered jobs at Aeroflot (ARO) subsidiaries, Rossiya Airlines (SDM), Donavia (DAU), Aurora (AAZ), OrenAir (ORB) and Pobeda (PBD).

November 2015: Aeroflot (ARO) subsidiary, Rossiya Airlines has appointed Aeroflot Deputy (CEO) Dmitry Saprykin as its new (CEO). The decision was announced at a board meeting headed by Vadim Zingman, also a former (ARO) Deputy (CEO), who moved to Rossiya (SDM) earlier this year.

Saprykin will coordinate a united regional (ARO) subsidiary that will be molded from Rossiya (SDM), OrenAir (ORB) and Donavia (DAU), (ARO) said.

In September and October, Saprykin headed Transaero Airlines (TRX), which Aeroflot (ARO) planned to buy, but ultimately pulled out of the deal.

In November 2011, (ARO) received 75% (-1 share) of Rossiya Airlines (SDM) from Rostec (a state corporation controlled by the Russian Federation) together with shares of 4 other regional carriers.

In March 2014, Rossiya (SDM) transferred its flights under Aeroflot’s (ARO)'s (SU) code.

December 2015: News Item A-1: "Russia’s International Traffic dropped -28.4% in November" by (ATW) Polina Montag-Girmes.

International traffic for Russian airlines was down -28.4% in November year-over-year (YOY) to 2.2 million passengers, according to Russia’s Federal Air Transport Agency, Rosaviatsia.

The total number of passengers carried in November reached 5.7 million, down -11.8% (YOY). The sharp drop is attributed to the closure of Egyptian destinations, following the Metrojet (KLV) Airbus A321 crash on October 31, and charters to Turkey due to increased tensions between the 2 countries after the downing of a Russian fighter jet over Syria by Turkey.

In the January - November period, all Russian airlines carried 86.5 million passengers, down -0.4% (YOY). International traffic was down -14.9% to 37.6 million, while domestic routes grew +14.5% to 48.9 million.

Aeroflot (ARO) carried 24 million passengers in the 11-month period, up +10.7%. (S7) (SBR) carried 7.6 million, up +2.6 %. While Globus (GLP), a part of the (S7) Group, carried 2.2 million, up +15.2%. UTair (TYU), that announced its debt portfolio refinancing, carried 5.2 million, down -35.7%. Ural airlines (URL) carried 5.1 million, up +6.3%. (URL) remained 5th place in the ratings, while Rossiya Airline (SDM) stayed at the 6th place with 4.5 million passengers carried, down -6.7% (YOY).

January 2016: Aeroflot (ARO), which is combining 3 of its regional subsidiaries (Rossiya Airlines (SDM), Donavia (DAU), and Orenair (ORB)) into 1 company under the Rossiya Airlines (SDM) brand, said the fleet of the renewed carrier will reach 74 aircraft and will carry up to 10 million passengers per year.

After the merger, which is expected to be finalized in 2016, the subsidiary will concentrate on regional markets.

According to Aeroflot (ARO), the new Rossiya (SDM) will employ 1,500 of 2,060 OrenAir (ORB)’s staff. Details about Donavia (DAU) have not been disclosed.

(ARO) also plans to develop the premium segment, while its Pobeda (PBD) subsidiary will remain in the low-cost carrier (LCC) segment. Russia’s Far East based Aurora Airline (AAZ) will be a separate regional subsidiary developing the network in the eastern part of the country.

March 2016: Italy’s Aviointeriors will provide business (C)-class seating for Russia’s Rossiya Airlines (SDM)’s retrofit program on some Airbus A319s and A320s. (SDM) will use Andromeda seats with delivery of the 1st 10 shipsets scheduled to begin in 2016. Rossiya (SDM) operates 16 A319s and 7 A320s.

April 2016: "Rossiya Airlines Takes First 747-400 in New Livery"

The Aeroflot Group’s consolidated regional subsidiary, Rossiya Airlines (SDM) has taken delivery of its 1st Boeing 747 in a new livery - - see photo - "SDM-747-400 - New Livery-2016-04.jpg."

The 747-446 (26362, EI-XLE) was previously operated by Transaero (TRX). (SDM)’s entire fleet will be painted when new airplanes are delivered or regular maintenance is performed on the fleet.

(SDM) expects to begin using the 747-400 airplane on scheduled flights beginning April 30. Among the destinations to be served include: Adler/Sochi, Khabarovsk, Petropavlovsk-Kamchatsky, Simferopol, and Vladivostok.

The Aeroflot Group has combined its 3 regional subsidiaries: Saint Petersburg-based Rossiya Airlines (SDM), Orenburg-based OrenAir (ORB) and Rostov-on-Don-based Donavia (DAU). The carriers launched a combined network and charter flights from the (IATA) 2016 summer season.

(ARO) has consolidated its Donavia ((IATA) Code: D9, based at Rostov) (DAU) and Orenair ((ICAO) Code: ORB, based at Orenburg) (ORB) units into an expanded Rossiya (SDM) which will function as a mid-tier carrier alongside Aeroflot (ARO) (mainline) and Pobeda ((IATA) Code: DP, based at Moscow Vnukovo) (PBD) (budget).

Aeroflot (ARO) low-cost carrier (LCC) subsidiary, Pobeda Airlines (PBD) and Russia’s Far East-based, Aurora Airlines (AAZ), will remain self-contained.

May 2016: Aeroflot (ARO) plans to carry 30 million passengers in 2016, (ARO) (CEO) Vitaly Savelyev told Russia’s TV Rossiya 24. The whole Aeroflot Group is expected to handle 40 million passengers.

The Aeroflot Group includes low-cost Pobeda Airline (PBD), which more than doubled traffic in the 1st quarter to 950,794 passengers. Saint Petersburg-based Rossiya Airlines (SDM), Rostov-on-Don-based Donavia (DAU), and Orenburg-based Orenair (ORB) are now combining into one airline operating under the Rossiya Airlines brand.

In the first quarter, Orenair (ORB) carried 491,346 passengers, up +8.1% year-over-year (YOY). Rossiya (SDM) carried 862,617 passengers, down -21.2%. Donavia (DAU) carried 209,116 passengers, down 35.8%. Aurora Airline (AAZ), which serves Russia’s Far East, carried 276,827 passengers, up +21.5% (YOY).

In 2015, Aeroflot (ARO) carried 26.1 million passengers, up +10.6% (YOY). The group’s traffic reached 39.4 million passengers, up +13.4%.

June 2017: Russia’s Federal Air Transport Agency, Rosaviatsia, has canceled the air operator’s certificate (AOC) of Aeroflot Group subsidiary Orenair (ORB) from May 26. The decision was made at the request of the Orenburg-based airline.

Aeroflot (ARO) announced in October 2015 it would combine 3 of its regional subsidiaries: — Rossiya Airlines (SDM), Donavia (DAU), and Orenair (ORB), into 1 company under the Rossiya Airlines (SDM) brand.

From March 27, the 3 carriers launched a combined network that includes 81 destinations from Moscow Vnukovo, Saint Petersburg, and Rostov-on-Don.

July 2016: The Aeroflot Group carried 15.8 million passengers from January to May, up +11.5% year-over-year (YOY).

The Aeroflot Group includes Aeroflot Airline (ARO), the low-cost carrier (LCC) subsidiary, Pobeda Airline (PBD), Far East subsidiary Aurora Airline (AAZ), as well as Rossiya Airline (SDM), Orenburg-based OrenAir (ORB) and Rostov-on-Don-based Donavia (DAU).

Moscow-based, Aeroflot Airline (ARO) carried 10.9 million out of the total traffic, up +13.6% (YOY). Group (RPK)s grew +13.2% to 35.3 billion and load factor reached 77.4% LF, up +3 points (YOY).

Aeroflot Airlines (ARO)’s load factor was up +2 points to 77.7% LF during the period.

In May, the Group carried 3.5 million passengers, up +8.8% year-over-year (YOY), while (ARO) carried 2.4 million, up +12.4%. Domestic traffic for the Group grew +8.5% in May compared to the year-ago period, while international traffic increased +9.2%.

Aeroflot (ARO) said it experienced increases in international traffic despite a flight ban to Ukraine, Egypt and a charter flight ban to Turkey.

October 2016: Rossiya Airline (SDM) is expected to lease 5 ex-Emirates (EAD) 777-300s (32706, 32709, 32710, 32715, and 32730) from AerCap (DEA).

December 2016: Il-96-300PU (74393202023, RA-96023), delivery.

January 2017: News Item A-1: Russia’s Aeroflot Airline (ARO) has filed for bankruptcy of its Orenburg-based Orenair (ORB) and Rostov-on-Don-based Donavia (DON) subsidiaries, according to documents filed in Orenburg and the Rostov region’s commercial courts this month. A trial date for OrenAir (ORB) has been set for February 9, according to the commercial court database.

In August 2016, (ARO) recovered a RUB884 million/$13 million overdue loan it had granted to (DON) last year.

At the end of May 2016, Russia’s Federal Air Transport Agency, Rosaviatsia, canceled the air operator’s certificate (AOC) for (ORB).

In November 2011, (ARO) received shares of 5 Russian regional carriers (including Orenair (ORB), Donavia (DON) and Saint Petersburg-based Rossiya Airlines (SDM)) from Russian state corporation Rostec. In October 2015, (ARO) announced it would combine the 3 subsidiaries under the brand Rossiya Airlines (SDM).

February 2017: 747-446 (29899, EI-XLG "Irkutsk"), ex-(N917UN), Sberbank Leasing leased.

March 2017: Russian airlines carried 12.7 million passengers in January - February, up +19.3% year-over-year (YOY). International traffic grew +30% (YOY) to 4.9 million; domestic traffic was up +13.7% to 7.9 million. Cargo and post traffic grew +21.4% (YOY) to 150,500 tonnes.

St Petersburg-based Aeroflot (ARO) subsidiary Rossiya Airlines (SDM) carried 1.3 million passengers, more than doubled from the previous year.

The total market share of Russia’s 5 biggest airlines grew to 70.1% from 67.7% in the year-ago period.

April 2017: Tu-204-300 (1450744564059, RA-64059) delivered to Rossiya Special Flight Division.

May 2017: 737-8LJ (CFM56-7B) (41232, VP-BOA "Pyatigorsk"), Avia Capital Corporation leased.

June 2017: Russian airlines carried +46.9% more international passengers year-over-year (YOY) in May, reaching 3.7 million passengers for the month.

Domestic traffic increased +14.6% (YOY) to 5 million passengers in May. For the January - May period, Russian airlines carried 35.8 million passengers, up +22.1% (YOY). International traffic increased +36% (YOY) to 14 million passengers, while domestic traffic grew +14.6% to 21.8 million passengers. Load factor increased 3 percentage points from 76.6% in the 1st 5 months of 2016 to 79.6% for January - May 2017.

Individual airlines reported the following January - May passenger figures:

* Aeroflot Airline (ARO) carried 12.3 million, up +13.1% (YOY).

* St Petersburg-based Aeroflot subsidiary, Rossiya Airlines (SDM) carried 3.69 million, up +78%.

* Sibir Airlines (SBR), also known as (S7), carried 3.5 million, up +3.3% YOY. Globus (GLP), which operates under the (S7) Airlines brand, carried 1.7 million, up +51.8% (YOY).

* UTair Aviation (TYU) carried 2.6 million, up +22.4%.

* Ural Airlines (URL) carried 2.5 million, up +29%.

737-8LJ (41236, VP-BOB "Bryansk"), Avia Capital Leased, delivery.

August 2017: A Russian court has declared Aeroflot Airline (ARO) subsidiary Donavia (DON) insolvent following a bankruptcy filing in January, when (ARO) filed on behalf of its 2 subsidiaries: Orenburg-based Orenair (ORB) and Rostov-on-Don-based Donavia (DON).

Orenair (ORB) was declared bankrupt in February 2017.

In November 2011, Aeroflot (ARO) received shares of 5 Russian regional carriers (including Orenair (ORB), Donavia (DON) and Saint Petersburg-based Rossiya Airlines (SDM)) from Russian state corporation Rostec. In October 2015, (ARO) announced it would combine the assets of 3 subsidiaries under the brand Rossiya Airlines (SDM). In May 2016, Donavia (DON)’s air operator’s certificate was canceled after the assets were combined.

In August 2016, (ARO) recovered a RUB884 million/$13 million overdue loan it had granted to Donavia (DON) last year.

September 2017: A consortium of international investors has acquired a 25% stake in Thalita Trading, the holding company of the Northern Capital Gateway that manages Pulkovo International Airport in St Petersburg, Russia.

The consortium comprises Russian Direct Investment Fund (RDIF), Russia-China Investment Fund, Mubadala Development Company, Baring Vostok Private Equity Fund V, and a number of related funds (Baring Vostok), as well as leading co-investors from the Middle East.

“RDIF’s efforts helped to form an international consortium of investors, attracting >$200 million into Russia from leading funds, including from Asia and the Middle East. We are confident that the arrival of new shareholders will contribute to the dynamic development of Pulkovo, one of the largest airports in Russia,” (RDIF) (CEO) Kirill Dmitriev said.

Moscow-based (RDIF) is Russia’s sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors.

Pulkovo airport is the 4th biggest in Russia after Moscow Sheremetyevo, Domodedovo and Vnukovo. It handled 7.1 million in (1H) 2017, up +25.4% year-over-year. It is a base airport for Aeroflot (ARO) subsidiary, Rossiya Airlines (SDM).

October 2017: News Item A-4: Russian airlines carried 81 million passengers in the 1st 9 months of 2017, up +19.7% year-over-year (YOY).

International traffic grew +36.5% to 33 million; domestic traffic was up +10.4% to 48 million. Load factor increased 1.9 points (YOY) to 84% (LF). Cargo and post traffic grew +19.5% to 819,105 tonnes.

Individual airlines report the following 9-month figures:

* Aeroflot Airline (ARO) carried 24.8 million, up +14.2% (YOY).

* St Petersburg-based Aeroflot (ARO) subsidiary Rossiya Airlines (SDM) carried 9 million, up +47.9%.

* Sibir Airlines (SBR) carried 7.6 million, up 1.9%. Globus (GLP), which also works under the (S7) Airlines (SBR) brand, carried 3.4 million, up +23.8%.

* Ural Airlines (URL) carried 6.1 million, up +22.9%.

* UTAir Aviation (TYU) carried 5.5 million, up 9.8%.

The total market share of Russia’s 5 biggest airlines declined to 65.5% from 66.9% in January to September 2017.

Fleet:
(definitions)

Click below for photos:
SDM-737-548-JAN09
SDM-737-548-JUL08
SDM-747 with Amur Tiger Nose - 2017-10.jpg
SDM-747-400 - New Livery-2016-04.jpg
SDM-767-3Q8ER-APR08
SDM-A319 JAN07
SDM-A319 VP-BTQ
SDM-A319-111 - 3998 - 2017-06.jpg
SDM-A320-214-JAN09
SDM-AN-148-JUL09
SDM-IL-86-CONFIG
SDM-IL-86-MAY08
SDM-IL-96-300-MAY08
SDM-TU-154M-MAY08
SDM-TU-214-CONFIG
SDM-TU-214-MAY08

November 2017:

0 737-548 (CFM56-3B1) (1989-24989, /91 EI-CDD; 2050-25115, /91 EI-CDE; 2232-25737, /92 EI-CDF - - SEE PHOTO - - "SDM-737-548-2008-07;" 2261-25738, /92 EI-CDG; 2271-25739, /92 EI-CDH), ALL RETIRED. 117Y.

2 737-8LJ (CFM56-7B) (41232, VP-BOA, "PYATIGORSK;" 41236, VP-BOB "BRYANSK"), AVIA CAPITAL CORPORATION LEASED 2017-05 & 2017-06.

4 747-446 (CF6-80C2B1F) (26362, /98 EI-XLE; 29899, EI-XLG "IRKUTSK"), EX-(TRX), SBERBANK LEASING LSD 2016-04 & 2017-02, 11F, 56C, 285Y.

3 767-3Q8ER (CF6-80C2B6F) (870-29390, /02 EI-DZH, 2008-04 - - SEE ATTACHED PHOTO - - "SDM-767-3Q8ER-2008-04"), EX-(SKM), (ILF) 7 YR LSD. PLANS TO PARK THE 3 AIRPLANES 2015-07. 24C, 230Y.

5 ORDERS 777-300 (32706, 32709, 32710, 32715, and 32730) EX-(EAD) AerCap (DEA) LSD.

2 A318-111 (CFM56-5B5/P) (1939, /03 N801FR; 2051, /03 N804FR), EX-(FRO), VTB LSG LSD 2008-03. 118Y.

2 A319-100, LSD 2009-03. 128Y.

1 A319-111 (1753, EI-ETP), (TCI) LSD 2012-09, EX-(B-2339).

4 A319-112 (CFM56-5B5/P) (1761, /02 VP-BIT, 2008-03; 1863, VQ-BAS 2008-12; 1876, 2008-12; 1890, /02 N917FR, 2008-03), EX-(FRO), VTB LSG LSD.

1 A319-112 (CFM56-5B) (1853), EX-(SKS)/(ACN), (PSS) LSD 2008-08.

4 A319-114 (1149, VP-BTQ 2007-02 - SEE PHOTO; 1164, VP-BTO 1167, VP-BTT - 2007-03 - SEE PHOTO), EX-(NWA), (SBR) WET-LSD.

1 A320-200 (VQ-BDR), (GEF) LSD 2010-10.

3 A320-212 (CFM56-5A3) (525, /95 EI-DXY), (ILF) 5 YR LSD 2008-01, EX-(RFG), 174Y.

1 A320-214 (CFM56-5B4/P) (1578, VQ-BBM), (IBW) LSD 2009-01. 180Y.

1 A320-214 (2163, VP-BWI), EX-(F-WWBD), (GEF) LSD 2014-08.

6 AN-148-100B (40-03, RA-61701 - - SEE PHOTO - - "SDM-AN-148-2009-07;" 40-05, RA-61705; 42-07, RA-61720, 2013-05), (ILF) LSD. OPERATED BY SPECIAL FLIGHT DETACHMENT. ALL SIX GROUNDED APRIL 2015 DUE TO DECREASING TRAFFIC. 70Y.

3 IL-18D (AI-20M) (1870101103, /67 RA-75453; 187010104, /67 RA-75454; 187010401, /67 RA-75464), 100Y.

8 IL-62M (D-30KU-154-II) (2153258, /91 RA-86559; 2647646, /86 RA-86710; 2749316, /87 RA-86466; 3546548, 85 RA-86540; 3546733, /85 RA-86537; 3749733, /87 RA-86467; 4154852, /91 RA-86561*; 4648339, /86 RA-867124749857 /87 RA-86468), * PRESIDENTIAL AIRPLANE, VIP.

4 IL-86 (NK-86) (51483204037, /85 RA-86070; .

3 IL-96-300 (PS-90A) (2147483647, RA-96018, 8/07; 74393201009, /95 RA-96012; 74393202010, /03 RA-96016), PRESIDENTIAL AIRPLANES. VIP.

2 IL-96-300PU (74393202020, RA-96020, 2012-08; 20201, RA-96021, 2014-01), OPS BY SPECIAL FLIGHT DETACHMENT.

1 IL-96-300PU (74393202023, RA-96023), 2016-12.

14 TU-134A (D-30-III) (66300, /84 RA-65553; 66350, /84 RA-65555; 63953, /82 RA-65904; 63965 /82 RA-65905; 63972, /83 RA-65911; 63985 /82 RA-65912; 63997, /83 RA-65921; 63357, /80 RA-65978; 63158, /80 RA-65979; 66207, /84 RA-65994; 66400, /84 RA-65995), VIP.

1 TU-154B-2.

1 TU-154M (D-30KU-153-II) (760, /87 RA-85631), 8F, 140Y.

21 TU-154M (D-30KU-154-II) (758, /87 RA-85629; 782, /88 RA-85645; 809, /89 RA-85659; 820, /89 RA-85666; 854, /90 RA-85686; 991, /01 RA-85843), VIP.

1 TU-204-300 (1450744564059, RA-64059) DELIVERED TO ROSSIYA SPECIAL FLIGHT DIVISION 2017-04.

3 TU-214 (PS-90A) (41203004, /02 RA-64504; 42204005, /03 RA-64505; 44204006, /03 RA-64506), 12F, 146Y.

2 YAK-40 (AI-25) (9741456, /77 RA-87203; 9841258, /78 RA-87968; 9841358, /78 RA-87969; 9831558, /78 RA-87971; 9921658, /79 RA-87972; 9630249, /76 RA-88200), VIP.

Management:
(definitions)

VADIM ZINGMAN, BOARD CHAIRMAN (2015-07).
Vadim is also Deputy (CEO) of Aeroflot (ARO).

SERGIE MIKHALCHENKO, GENERAL DIRECTOR.

DMITRY SAPRYKIN, CHIEF EXECUTIVE OFFICER (CEO) (2015-11).
Dmitry, is also a former Aeroflot (ARO) Deputy (CEO), who moved to Rossiya (SDM). He coordinates a united regional (ARO) subsidiary that is molded from Rossiya (SDM), OrenAir (ORB) and Donavia (DAU), (ARO) said.

In 2015, Dmitry headed Transaero Airlines (TRX), which Aeroflot (ARO) planned to buy, but ultimately pulled out of the deal.

VLADIMIR ERSHOV, DEPUTY DIRECTOR GENERAL OPERATIONS.

SERGEI DZYUBA, DIRECTOR FLIGHT OPERATIONS.

 
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