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SEX-2009-10 NEWS PASSENGER DROP
Formed and started operations in 2006. Low Cost Carrier (LCC), domestic, regional & international, scheduled & charter, passenger & cargo, jet airplane services.
Centralnaya st, 2/2
119027 Moscow, 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.
October 2006: 1st 737-300 (N527AD), wet-leased, delivery - see photo.
January 2007: The Federal Agency of Air Transport has given Sky Express (SEX) the license for scheduled flights from Moscow to Sochi, Rostov-On-Don, Tyumen, and Murmansk.
Sky Express (SEX), which is billing itself as Russia's first Low Cost Carrier (LCC), launched operations at Moscow Domodedovo. The start-up is leasing two 737-300s and said it plans to add six more by June. According to its website, it will fly to Sochi, Murmansk, Rostov-on-Don and Tyumen. This maiden flight was to Sochi, according to Russian press reports. The European Bank for Reconstruction and Development reportedly contributed $10 million to Sky (SEX)'s $48 million initial capitalization, the Associated Press (AP) reported. Krasnoyarsk Airlines Director General, Boris Abramovich also is a key shareholder, according to "RIA Novosti."
The carrier said it hopes to hold a 7% market share by year end, and 25% within five years. One-way fares are as low as RUB500/$18.81, but passengers reportedly will pay $5 per kg for baggage weighing more than 15 kg. A S7 Airlines (SBR) spokesperson told (AP) that Russia is not the ideal place to operate an (LCC). "There is one airport, one fuel company and one catering company. The conditions for a low-cost airline in the European sense simply don't exist," he said.
737-5YO (26067, VP-BFB), AerCap (DEA) leased - see photo.
March 2007: Launches low cost operations from Moscow Vnukovo airport with two leased 737s: 737-300 (23527, VP-BBN), and 737-5YO (23067, VP-BFB), AerCap (DEA) leased.
Plans to add another 6 737-300s by April and to be operating 18 by year end.
1 737-3L9 (24220), ex-(N232DZ), 1 737-3YO (23747), ex-(N331AW), 3 737-322s (24321, ex-(N353UA); 24637, ex-(N372UA); 24661, ex-(N386UA)), & 2 737-35Bs (24269, ex-(N224DA); 25069, ex-(N225DL).
June 2007: Sky Express (SEX) of Russia increases Moscow Vnukovo - St Petersburg service to thrice-daily from daily.
October 2007: 737-341 (25049), Boeing (TBC) leased, ex-(N29BC).
September 2008: Some Russian officials claimed that Sky Express (SEX) has extraordinary debts to suppliers, triggering talk of a shutdown. (SKS) vigorously denied such problems and called attention
to its absence of bank debt and its strong group of shareholders,
including the European Bank for Reconstruction and Development. (SEX) also confirmed its intention to soon take delivery of its tenth airplane. (SEX) is partly controlled by the owners of heavily indebted KrasAir (ZXD), which was forced to shut down and transfer its assets to Moscow-based Atlant-Soyuz (AXX). According to the newspaper "Kommersant," (SEX) suffered a net loss of
-$29 million on just $55 million in revenues in 2007.
December 2008: Sky Express (SEX) secured (IATA) (ITA) Operational Safety Audit (IOSA) certification.
April 2009: 737-53C (24825, VP-BET), ACG leased, ex-(D-ACIN).
October 2009: In the first 9 months, SkyExpress (SEX) carried 580,882 passengers a -27.9% decline from the 805,446 it carried in 2008.
(IATA) Code: XW. (ICAO) Code: SXR (Callsign - SKYSTORM).
Avianova (ANV), the new Russian Low Cost Carrier (LCC), scheduled its seventh route: Moscow Vnukovo - Kazan. (ANV) starts next month. (ANV)ís main (LCC) rival is Sky Express (SEX).
September 2011: 1st A319 (2214, VQ-BMO), ex-(G-EZEJ) delivery of three.
October 2011: Sky Express (SEX), Russiaís first low-cost carrier (LCC), will lose its air operatorís certificate (AOC) and operate under a new single (AOC) with Russian regional carrier Kuban Airlines (KIL).
Alexander Neradko, the head of Rosaviatsia (Russiaís Department of Aviation/Ministry of Transport) announced the (AOC) changes as part of the consolidation process between Sky Express (SEX) and Kuban (KIL), which is based at Krasnodar International Airport in Southern Russia.
The owner of Kuban (KIL), Russian investment company Basic Element, announced its intent to buy Sky Express (SEX) in 2010.
The new combined airline will operate under the better-known, Sky Express (SEX) brand, but it is not clear if it will remain an (LCC).
Sky Express (SEX) was launched in 2007 by a group of foreign investors, including the European Bank for Reconstruction & Development and Altima Capital. It started operations with two 737-300s operating several domestic routes and offered a promotional fare of 500 rubles/$18. Later, however, (SEX) was forced to enter the charter market because it could not sustain the (LCC) business model in Russia. In 2010, it carried 1.66 million passengers.
On October 11, the Department of Aviation suspended the (AOC) of a second Russian (LCC) (Avianova (ANV)). Avianova (ANV) started flights in August 2009, but investors American Indigo Partners (INZ) and Russian A1 stopped funding. (ANV) ceased selling tickets on October 3 and made its last flight on October 9. Avianova (ANV) carried 1.54 million passengers in 2010.
Two Russian carriers (Ural Airlines (URL) and Kuban Airlines (KIL) announced they will stop using Soviet Union-era airplanes on regular flights.
Ekaterinburg-based (URL) said it removed a Tupolev Tu-154M from its fleet after its last flight from Yamburg (Western Siberia) to Ekaterinburg. When (URL) was launched in 1993, it had 11 Tu-154Bs; in 1994 it bought four more Tu-154Ms. As of this month, (URL) operated three Tu-154Ms that were allowed to fly to Europe.
According to CEO, Sergey Skuratov, (URL) is planning to sell its three Tu-154Ms. In November 2006, (URL) took delivery of its first A320, which started its fleet renewal program. Now (URL) operates 13 A320s and five A321s. In 2012, (URL) is planning to acquire four more A321s.
Krasnodar-based (KIL) said it will use eight Yakovlev Yak-42s only on charter flights and as reserve airplanes during its upcoming winter schedule. After the Yak Service Yak-42 crash last September 7 in Yaroslavl, media reports and some experts in Russia blamed old Soviet-made airplanes for being unsafe.
Russian Flight Safety Foundation International Chairman, Evgeniy Shaposhnikov objected to these conclusions. He noted that during the last 20 years, Russia has lost 50 airplanes. While 44 were Soviet-built airplanes, he said technical defects were responsible for just 16% of the accidents.
The main reason (URL) and (KIL) are retiring the Soviet-era airplanes is their low fuel efficiency. Also, (KIL) is consolidating with Low Cost Carrier (LCC) Sky Express (SEX), optimizing its route network and canceling several destinations in its winter schedule. The combined carrier (KIL)/(SEX) now owns three A319s and five 737s.
The replacement of Soviet-era airplanes began in the Russian market in 2005 - 2006. Through their renewal program, the biggest Russian carriers (such as Aeroflot (ARO), S7 Airlines (SBR) and Rossiya (SDM)) have already removed the older airplanes from their fleets. However, UTair (TYU), the fourth-biggest Russian carrier, still operates 21 Tu-154s; UTair-Express has 28 Tu-134s and 25 Antonov An-24s.
November 2011: Russian authorities withdrew the air operatorís certificate (AOC) for Sky Express (SEX) owing to the deterioration of its performance and finances, according to Rosaviatsia, Russiaís Department of Aviation/Ministry of Transport. (SEX) was Russiaís first low-cost carrier (LCC).
Last month, Rosaviatsia head Alexander Neradko said (SEX)ís (AOC) would be canceled due to the consolidation process between (SEX) and Krasnodar-based regional carrier Kuban Airlines (KIL). Both carriers belong to the investment company Basic Element. Despite losing one (AOC), the owner will keep both brands on the market as the (SEX) name has become well known over the last several years.
Earlier this fall, (SEX) transferred its airplanes to (KIL), creating a combined fleet of seven 737s, three A319s and 11 Yak-42s, which will not be used for scheduled flights.
Most of (SEX)ís routes were closed when the airlines optimized their winter schedule. It is still not clear if the combined airline will continue to offer low-cost fares. Since advanced notice of the consolidation and (AOC) withdrawal was given, passengers were not affected.
During the first nine months of this year, (SEX) carried 942,400 passengers, up +10.5% year-over-year.
(SEX) lost its own air operator certificate (AOC) on November 1 when it merged with sister carrier Kuban (KIL). (SEX) now operates as the low-cost carrier (LCC) division of Kuban (KIL), but has given up the vast majority of its scheduled network from Moscow Vnukovo. (SEX) now only serves Chelyabinsk, Krasnodar, Rostov and Vladikavkaz from Vnukovo and has given up routes to Adler/Sochi, Anapa, Ekaterinburg, Kaliningrad, Murmansk, Orenburg, St Petersburg and Ufa.
Click below for photos:
SEX-737 JAN07 A
1 737-3L9 (CFM56-3) (1602-24220, VP-).
1 737-3YO (CFM56-3) (1363-23747, VP-).
1 737-300 (CFM56-3) (N527AD, - SEE PHOTO), WET-LSD 2006-10.
3 737-322 (CFM56-3) (1672-24321, VP-; 1782-24637, VP-; 1840-24661, VP-), EX-(UAL).
1 737-341 (CFM56-3) (2091-25049, VP-, 2007-09), (TBC) LSD, EX-(N729BC).
2 737-35B (CFM56-3) (1628-24269, VP-; 2053-25069, VP-).
1 737-5YO (CFM56-3) (2304-26067, VP-BFB - SEE PHOTO), (DEA) LSD 2007-01.
1 737-53C (CFM56-3) (24825, VP-BET), ACG LSD 2009-04, EX-(D-ACIN).
2 +1 ORDERS A319-111 (2214, VQ-BMO, 2011-09; 2224, VQ-BLY), EX-(G-EZEJ & G-EZEK).
RON BRANDT, ADVISOR TO BOARD OF DIRECTORS.
Mr Brandt has been providing advisory services to internal and international airlines, as well as some of the world's leading financial institutions since 1984, specializing in air transportation of various levels in Europe, Asia, and both Americas. He has an impressive record of managing global projects. Prior to 2005, he worked for Hong Kong Express (HKE) as Executive Director for New Airlines and participated in launching a new low-cost carrier. In 1995 - 1996, he was President & Director General of Air South (SOT) - a USA budget airline. Additionally, Mr Brandt worked for such carriers as Philippine Airlines (PAL) (as Executive Director & Chief Advisor on acquisition and privatization of state-owned airlines), Air Atlanta (President & Director General), Trans World Airlines (TWA) (First Vice President), Pan Am (First Vice President), as well as other airlines. Mr Brandt graduated from the Massachusetts Institute of Technology (MIT) where he specialized in aviation and economics.
MARINA BUKALOVA, GENERAL DIRECTOR.
Marina Bukalova has more than six years of experience in the aviation industry. Having started out as head of the commerce department in Murmansk, she proceeded to become Commercial Director of KrasAir (ZXD), and later - Aide to General Director for Commerce. She is an open and goal-oriented person. She has participated in a number of projects designed to develop AirUnion (ZXD) domestic and foreign businesses. Marina graduated from the St Petersburg State University of Civil Aviation, and was recognized as one of the most professional commercial directors in Russia in 2003 and 2004. She is also listed as one of the "Best 200 top managers of Russia."
VALERY FATKULLIN, MARKETING DIRECTOR
Valery Fatkullin joined the Sky Express (SEX) project in spring of 2006. He has been working in marketing and advertisement since 1993. He started his career at one of the most well known marketing agencies, Kachalov & Co. He has also worked for such companies as SAMOS, DAMIN, and DIAL Electronic. He has conducted seminars and marketing consultations in partnership with Internews Russia and RFR. In 1992, Valery graduated from the Samara Aviation Institute, where he specialized in mechanical engineering.
IRINA KIRICHENKO, SALES DIRECTOR.
Irina Kirichenko has been working in aviation sales for over nine years. Prior to joining the project, Irina worked as Director General of the Moscow travel agency "Transaviacenter". Before that, she had worked as head of the sales department of East-Line (ESL) CJSC, where she was responsible for the expansion of the company's sales network and opening of new sales outlets, as well as for the development and implementation of the company's sales plans. Prior to that, Ms Kirichenko worked for the national carrier Air Kazakhstan (KAZ) in the capacity of Vice President - Head of the Sales Department, and later - as General Director of Air Kazakhstan (KAZ)Tour. She graduated from the Kazakhstan State Academy of Management.
RAVIL NASYBULLOV, FINANCIAL DIRECTOR.
Ravil Nasybullov has been working in the aviation business for more than four years. Before joining Sky Express (SEX), he was Head of the Finance Department of AirBridgeCargo (ABC) - a member-company of the Volga-Dnepr (VDA) group. He is a sociable and goal-oriented person. Ravil graduated from the Ulyanovsk State University of Technology, where he specialized in financial information systems. He is a qualified financial analyst. He also has a business certificate from Cambridge University, England, UK.
ELENA PONOMARYOVA, DEPUTY GENERAL DIRECTOR BUSINESS DEVELOPMENT.
Elena Ponomaryova managed a project on the establishment of a budget airline as Project Director. Currently, she is responsible for the company's strategy and business development. She has 10 years of experience in the telecoms and high-tech industry. She has worked at top management positions at MILLICOM/TELE2, COMSTAR, and SKYLINK. She specializes in start-up projects, launches of new brands, and strategic reorganization of businesses. Prior to the Sky Express (SEX) project, together with her associates, she established the CRM Association of Russia and CIS. She is an expert and a permanent speaker in the sphere of client relations management and is a member of the 2006 CRMguru.com Board. She has degrees in economics and management psychology. She is an MBA-graduate from a UK university. A strong team player.
ZHOLT POPRADI, TECHNICAL DIRECTOR.
Mr Popradi has been working in the aviation business since 1992. He started out at Malev Hungarian Airlines (HGA) and moved on to ensure the provision of airplane technical maintenance services at Aeroplex of Central Europe Ltd, where he was eventually promoted to Technical Director. Prior to joining Sky Express (SEX), he worked for Wizz Air (WZZ) Hungary Ltd. - a Hungarian airline - as Executive Technical Director. He has a Master's degree in mechanical engineering in aviation, and is qualified in aircraft powerplant maintenance. He graduated from the Kiev Civil Aviation Institute.
ELENA SEMYONOVA, SERVICE DIRECTOR
Prior to joining Sky Express (SEX), Elena Semyonova worked for Transaero (TRX) in the capacity of the Quality Director, where she primarily specialized in the improvement of the organization's business processes, development of a quality management system, and analysis of claims. Prior to that, she had worked as Commercial Director at Aviaconsulting - a consulting company - where she specialized in the organization of passenger services. She had also worked for the national carrier Air Kazakhstan (KAZ) as Vice President for Customer Service. She has a more than 25-years experience in aviation. Ms Semyonova has a university degree in economics.
VITALIY TERESCHENKO, EXECUTIVE DIRECTOR
Vitaliy Tereschenko has been working in the aviation industry for 15 years. For the past 10 years, he has worked at top management positions. He is experienced in organizing commercial and production operations of airlines. He is capable of finding solutions to complex problems and tackling nonstandard tasks. Prior to joining Sky Express (SEX), he worked as Deputy Director General of Domodedovo Airlines (DOD) and primarily dealt with organizing the airline's operations and coordinated flights of the (ZXD) AirUnion member airlines from the Domodedovo airport. For over eight years, he worked for the carriers' committee of the Supervisory Board on mutual settlement of accounts between airlines. Vitaliy graduated from the Kiev Civil Aviation Institute. He regularly undergoes industry-specific supplementary training to improve his qualifications.
OLEG TROTSENKO, FLIGHT DIRECTOR
At the moment, Oleg Trotsenko works as a KrasAir (ZXD) pilot instructor (Boeing 767). Having spent the past 30 years in aviation, he has a long and successful flight record and is experienced in the operation of various airplane types. His previous work record includes the position of Flight Information Analyst at Jeppesen, Boeing Co. Mr Trotsenko is a qualified specialist: he has a Master's degree from the State Academy of People's Economy in Moscow (from which he graduated with honors), a Master's degree from the St Petersburg Civil Aviation Academy, and a Bachelor's degree from the Civil Aviation College (Krasny Kut).
OLEG NOVIKOV, FLEET MANAGEMENT DIRECTOR
Oleg Novikov has been working for Sky Express (SEX) since December of 2005. Prior to that, he worked as Deputy Director General in charge of development at Volare Airlines (VLE) in Kiev. In 1993, Oleg graduated from the Kiev Civil Aviation Institute, where he specialized in organization and management of air transportation. Upon graduation, he began his career at International Airlines of Ukraine (UKR) in Kiev, where he was responsible for cargo charters, sales, and operation of cargo airplanes. In 2000, he became Head of the East-Line (ESL) Marketing & Development department in Moscow, where he was responsible for marketing and advertisement, analysis, sales development, and licensing. He has also worked as Cargo Director of Eurasia Airlines in Moscow. Oleg has participated in a number of aviation-specific management courses and training programs.