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7JetSet7 Code: TYU
Status: Operational
Region: CIS
Country: RUSSIA
Employees 4171
Telephone: +7 3462 770 910
Fax: +7 3462 280 116

Click below for data links:
TYU-2005-11-A-ATR AT DME
TYU-2006-06-1ST ATR42
TYU-2007-03 ACCDT
TYU-2011-09 737 ORDER
TYU-2013-07 - NEW A321
TYU-2013-11 - 25 NEW ROUTES
TYU-Cabin Attendant 2018-04.jpg


Address (HQ):
Airport, Khanty-Mansiysk,
Khanty-Mansiysky Autonomous District, Tyumen Region
Khanty-Masiysky, 628422, Russia.

Address (operations):
Surgut, 628422, 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.








DECEMBER 1999: 2 IL-18D'S (188011105, RA-74267; 188011201, RA-74268), RAM AIR LEASED.



JULY 2000: 1999 = 700 MILLION (RPK) TRAFFIC; 68,000 (FTK) FREIGHT TRAFFIC; 474,000 PASSENGERS (PAX) (-1.5%).





1 TU-134A (46155, RA-65609) & 1 TU-134A-3 (61025, RA-65148).







JANUARY 2001: 1 IL-76T (083414432, RA-76510) DELIVERY.

MARCH 2001: 1 TU-154M (97A-1008, RA-85819), EX-YAMAL MARCH 2001.

MAY 2001: 2000 = +$16 MILLION (1ST NET PROFIT IN 5 YEARS!): 720,000 PASSENGERS (PAX).





1 TU-134A (3351806, RA-65960) & 2 TU-134A3 (23135, RA-65847; 28265, RA-28260), DELIVERIES.

OCTOBER 2001: 1 IL-76T (083414432, RA-76510) LEASED TO AVIACION ZITOTRANS.


JANUARY 2002: 2001 = 1.22 MILLION PASSENGERS (PAX) (+65.5%); 121,700 TONNES (+75.1%).

1 TU-154M (92A-922, RA-85739), SAMARA (SMR) LEASED.


1 TU-134A3 (48320, RA-65621) DELIVERY.

July 2002: Plans to change its name from Tyumen Airlines to UTair (Ugorskaya Transportnaya Kompania). Ugorskaya is the old name of the region, where the airline is based. The English transcription is "United Transport."

1 Tu-154M delivery, ex-Estonian operator, after maintenance at Vnukovo Repair facility.

August 2002: UTair (TYU) has been providing aviation services to the United Nations (UN) since 1991, and today, is the largest helicopter airlift service provider for the (UN). (TYU) has supported (UN) peacekeeping missions in Yugoslavia, Angola, Cambodia, Mozambique, Somalia, Western Sahara, and the Central African Republic. In 2001, (TYU) generated about $35 million (23% of its total operating revenues) serving (UN) contracts.

1 TU-134A3 (60090, RA-65083) AND 1 TU-154B-2 (82A-557, RA-85557) deliveries.

October 2002: Changes its name from "Tyumen Airlines" and starts flying with new name "UNITED TRANSPORT AIR (UTAIR)."

Moved its HQ from Surgut, to Hanti-Mansiisk.

November 2002: ACCDT: (TYU) An-26 (07310007, RA-26012) struck electrical transmission lines on approach to Antalya, Turkey, and crashed 1,650 ft short of runway = all 9 (FC) - (CA)/19 passengers survived, although most were injured. The airplane was written off (W/O).

January 2003: Tu-134A (60090, RA-65083) delivery.

February 2003: Domodedovo Airlines (DOD) parent, the Russian government plans to sell 24.5% of its 50.3% stake to private investors. Reportedly, UTair (TYU) is a potential bidder.

Tu-134A (49755, RA-65049) delivery.

April 2003: 3,402 employees (including 564 Flight Crew (FC), & 639 Maintenance Technicians (MT)).

United Transport Air - UTair (TYU) provides domestic and international passenger and cargo services, together with extensive helicopter flights in support of Western Siberian oil and gas exploration and United Nation (UN) peacekeeping operations worldwide, mostly with Mil Mi-8 and Mi-26 helicopters.

Domestic, Scheduled Destinations: Moscow; Nizhnevartovsk; Nojabrxsk; Novy Urengoy; Surgut; Tyumen; & Uraj.

International, Scheduled Destination: Kiev.


July 2003: An-24B (79901104, RA-47741) wet-leased to Ecuato Guineana de Aviacion.

September 2003: An-24B (79901208, RA-47755) to Yakutia. Tu-134A3 (3352102, RA-65612) Komiavia leased, delivery.

December 2003: 2 Tu-154B2's (504; 602) deliveries.

January 2004: 2003 = 1.5 million passengers (PAX).

April 2004: To add a base in Kursk in the summer to operate to Anapa, Ekaterinburg, Moscow (VKO), Samara, and Simferopol.

July 2004: 2003 = 2.16 billion (RPK) traffic (+2.8%); 66.1% LF load factor; 1.29 million passengers (PAX) (+4%); 13.04 million (FTK) freight traffic (-5.1%).

August 2004: 1st 6 months = Aeroflot (ARO) 3.1 million passengers (PAX) (+.3%); Sibir (SBR) 1.5 million (+17.1%); KrasAir (ZXD) 765,000 (+46.6%); UTair (TYU) 634,000 (+9.3%); Transaero (TRX) 607,000 (+124%).

5 orders (December 2004) used ATR 42-300's (211; 216; 235) from Magellan Air, Shannon to replace its aging An-24 fleet. UTair (TYU) will become the 1st Russian operator of the ATR turboprop, the most northerly operator, and only the 2nd Russian airline to add a Western regional turboprop (Sakhalin operates 3 Dash 8's on behalf of Exxon.

October 2004: ATR 42-300 (159), delivery. Tu-134A (60332, RA-65108) delivery. Tu-134A (62552, RA-65777), Komiinteravia leased. Tu-134A3 (63245, RA-65977) returned to Komiinteravia.

January 2005: 1 IL-76T (3427796) delivery.

April 2005: 2 orders (June 2005) ATR 42-300's, ex-Continental Airlines (CAL), to develop its regional market.

May 2005: UTair (TYU) is now under the control of energy giant Surgutneftgaz.

2004 = +13.8% (RPK) traffic.

Has introduced 18 new routes in 2005, including 10 from Moscow Projects (RPK)'s traffic will rise by about a 3rd this year.

July 2005: UTair (TYU) is a large Russian carrier operating scheduled, domestic passenger services, charter flights, and extensive helicopter activities in support of the oil and gas industry in Siberia, as well as relief operations for the United Nations (UN).

(IATA) Code: P2 - 298. (ICAO) Code: TMN (Callsign - TJUMAVI).

Parent organization/shareholders: Khanty Mansiysk District (23%); private foreign investors (20%); Surget City Administration (19%); Russian shareholders (17%); Russian companies (16%); & Russian Federation (2%).

Owns: Domodedovo Airlines (DOM) (49.6%).

Main Base: Tyumen airport (TJM).

Domestic, Scheduled Destinations: Adler/Socchi; Belgorod; Cheoksary; Ekaterinburg; Kazan; Khanty-Mansiysk; Kogalym; Krasnodar; Kursk; Magnitogorsk; Makhachkala; Mineralnye Vody; Moscow; Nizhnevartovsk; Noyabrsk; Novosibirsk; Novy Urengoy; Omsk; Rostov; Samara; St Petersburg; Surgut; Syktyvkr; Tyumen; Ufa; Ukhta; Uraj; & Usinsk.

International, Scheduled Destination: Bishkek; Gyandsha; & Kiev.

September 2005: Moscow Domodedovo obtained certification from Russia's Federal Air Transport Agency to handle the A300 and ATR42, opening the door for services by UTair (TYU), which plans to begin operating the ATR 42 from the airport this fall. Domodedovo said it successfully completed a 4-month test of the GK-1 access control system and will begin installation of the voice-analysis system developed by Israel's Newsysco, which will be used in passenger security screening at all customs and border control locations. Domodedovo maintained its leading position among Moscow's 3 airports in the 1st 8 months of the year as it handled 9.2 million passengers, up +12.1% over the same period in 2004.

March 2006: UTair (TYU) recently took delivery of 2 ATR 42-320s. The airplanes will be operating from bases in Surgut and Tyumen in Western Siberia and will replace An-24's.

February 2007: The Russian Transport Ministry announced that 9 airlines have been banned from operating charter and ad hoc flights to the European Union (EU) countries. It said it barred the carriers following notification by the European Commission (EC)'s Transport Directorate about the lack of control of maintenance and operational procedures. The airlines are Aero Rent, Tatarstan Airlines (TAK), Atlant-Soyuz (AXX), Aviacon Zitotrans, Center Avia, Gazpromavia, Lukoil, Russkoe Nebo (Russian Sky) (ESL), and UTair (TYU).

March 2007: The European Commission (EC)'s 3rd update of its airline blacklist, features the 1st removal of airlines that successfully raised their safety standards and has placed new restrictions on Pakistan International Airlines (PIA).

The removal of Thailand's Phuket Air (PHK) and DAS Air Cargo (DAC)/Dairo Air Services (DAR) of Kenya and Uganda, respectively, from the blacklist "shows that our list acts not only as essential protection against unsafe operations but also as a strong and effective incentive for companies who deviate from international safety norms to address their shortcomings," (EC) VP Transport, Jacques Barrot said.

In addition, 49 airlines included on the previous list have ceased operating either on their own volition or because they lost their air operating certificates (AOC)s. 10 carriers from Kyrgyzstan, Equatorial Guinea and Democratic Republic of Congo were added, and a partial ban on Sudan's Air West (AWT) was made total.

(PIA)'s appearance on the list, uncommon for a larger flag carrier, is a blow to an airline that suffered a fatal F27 crash and a $150 million loss in 2006. The ban extends to all (PIA) airplanes, save its 6 777s. It also operates 14 A310s, 9 747s, 7 737s, 3 ATR 72s, 2 A321s and 1 L-1011.

Anticipating the result following the (EC)'s October revelation that it was paying close attention to (PIA)'s activities, the (EU)'s Air Safety (EASA) Committee "expressed its satisfaction" following consultations with (PIA) management in early February, and that its Engineering department consistently had passed semiannual (EASA) audits.

The (EC) noted that Bulgaria and Russia took the initiative to prohibit airlines registered in their respective countries, from operating into the (EU). Bulgaria banned Air Sofia, Bright Aviation Services, Heli Air Services, Skorpion Air and Vega Airlines from (EU) activities, while Russia barred Aero Rent, Tatarstan (TAK), Atlant Soyuz (AXX), Aviakon Zitotrans, Centre Avia, Gazpromavia, Lukoil, Russian Sky (ESL) and Utair (TYU).

ACCDT: A UTAir (TYU) Tu-134A-3 (48390, /76 RA-65021) came down short (-400 m) of the runway in heavy freezing fog, bouncing and flipping onto its back = 6 fatalities and 26 injured of 7 (FC)-(CA)/57 passengers on board. Investigators at the crash at the central Russian city of Samara, said bad weather and pilot (FC) error were the most likely causes. The airplane was traveling from the Siberian city of Surgut. Experts said the aging Tu-134A-3, the workhorse of Russian civil aviation, is harder to land than more modern airplanes, especially in bad weather. Transport officials have ordered the planes be gradually phased out.

Reports from the city in SW Russia and data supplied by the Flight Safety Foundation's Aviation Safety Network (ASN) said the airplane landed 400 m short of the Samara airport runway and flipped over, after the left wing touched the ground.

The (ASN) described the weather as "freezing fog" with visibility of 150 m. A Russian Emergency Ministry spokesperson said the fog "was very heavy," according to "Reuters," which said a UTair (TYU) statement also cited fog as the cause. (TYU) confirmed that "the plane met airworthiness and maintenance standards applicable to this type of airplane" and that its age was "irrelevant" since it met government standards. (ASN) said this Tu-134A-3 (48390, /76 RA-65021), 1st flew in 1976, was acquired by UTair (TYU) last year and was powered by 2 Soloviev (D-30-III) engines. Published photographs showed the flipped, broken airplane resting in several inches of snow.


The authorities have since imposed operating limitations on UTAir's (TYU)'s Tu-134 operations.

UTAir (TYU), based in Tyumen, was 1 of 9 Russian airlines banned by its own government earlier this month from operating into the European Union (EU) countries. Saturday's crash marked the 4th major accident involving a scheduled service carrier from the (CIS) in the past 10 months. It was the 2nd hull-loss accident for UTAir (TYU), which launched service in 1991. (TYU) said it would pay $75,000 to the family of each of the 6 victims.

UTAir (TYU) flew 337,973 passengers in the 1st 2 months of 2007, up +28.6% from the year-ago period.

April 2007: UTAir (TYU)'s 2006 profit more than doubled to +RUB263.9 million/+$10.2 million from +RUB128 million in 2005, Russia's "AK&M" reported. The company anticipates a +RUB645 million profit in 2007.

July 2007: UTAir (TYU) reported a +40% year-over-year increase in revenue to RUB9 billion/$354.3 million for the 1st half of 2007, Russia's "AK&M" reported. Passenger numbers climbed +21% to 1.3 million, and traffic was up +25% to 1.93 billion (RPK)s.

December 2007: 737-524 (28926, VP-BVL), ex-Continental Airlines (CAL), TransAero (TRX) wet-leased.

January 2008: UTair (TYU) will operate daily, Moscow Domodedovo to Magnitogorsk from February 1 aboard a Tu-134.

February 2008: UTair (TYU) transported 205,398 passengers in January, up +122.7% from the year-ago month.

UTair (TYU) reported a +RUB270 million/+$11 million profit in 2007, up +2.3% from the year-ago figure, according to press reports from Russia. It expects net earnings of +RUB320 million this year on revenue of RUB33.3 billion.

(AK&M) reported that UTair (TYU) intends to add 10 737-500s by year end and +10 more by the close of 2009. "Bloomberg News" reported that it will lease half of those airplanes from Continental Airlines (CAL).

April 2008: Lufthansa (DLH) Systems won a 5-year deal with UTair (TYU) for provision of its ProfitLine/Yield Rembrandt revenue management technology. It features pricing intelligence and demand forecasting.

May 2008: 2 737-524s (27321, VQ-BAC - - SEE PHOTO - - "TYU-737-524-MAY09;" 28925, N14664), ex-Continental Airlines (CAL) deliveries.

September 2008: UTair (TYU) is the top airline at Moscow (VKO) Airport, which in January through July 2008, handled 2.9 million domestic passengers and 1.7 million international passengers, for a total 4.6 million. This gave the airport a ranking of 3rd highest in Russia, with the others (in millions) being: 1. Moscow (DME) 11.9; 2 Moscow (SVO) 8.6; 4. St Petersburg 4.0; 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. UTair (TYU) is also the top airline at Samara Airport, which in January through July 2008, handled 0.6 million domestic passengers and 0.2 million international passengers, for a total 0.8 million.

April 2009: Lufthansa (DLH) Systems signed a contract with UTair (TYU) to implement its ProfitLine/Yield Rembrandt solution.

September 2009: Lufthansa (DLH) Consulting signed a deal with UTair (TYU) to identify new network growth opportunities for the Russian carrier, starting in July and due to be completed in September.

October 2009: ATR 42-300 (386, UR-UTB), ex-(VP-BLQ), delivery for new UTair Ukraine operations.

December 2009: UTair Aviation (TYU) launched a Ukrainian subsidiary, "UTair-Ukraine," which is operating from Moscow Vnukovo to Luhansk, Kharkov, and Nikolaev with ATR 42s - - SEE ATTACHED - - "TYU-2009-12 UKRAINE OPS."

(TYU) transported 3.2 million passengers in the 1st 11 months of 2009, up +6.1% year-over-year. Load factor was up +0.8 point to 71.3% LF.

CRJ-200 (7298, VQ-BGU), ex-(C-GEDO) delivery.

January 2010: INCDT: UTAir (TYU) 737-524 (2597-27321, VQ-BAC), nose gear collapses at Moscow Vnukovo airport. No injuries.

March 2010: Nizhny Novgorod is an economic and industrial center that is Russia's 4th most populous city with nearly 1.5 million residents, but its airport handles only 300,000 passengers per year and is served by just 1 non-(CIS) airline (Lufthansa (DLH)).

Now the regional government is working to change that and has launched a process designed to modernize Nizhny Novgorod International airport (GOJ) into a facility capable of serving >2 million passengers annually in 2014.

Region Governor, Valery Shantsev admitted that his administration "is not satisfied with the condition of the airport today." It has a 2,805 m Instrument Landing System (ILS) concrete runway and a 2,509 m non-(ILS) asphalt runway, and Shantsev said that "the equipment dates back to the 1960s."

The 1st step toward creating a 21st-century airport came when the government contracted Hochtief to conduct a study on overhauling and expanding (GOJ) and to consult on a search for an operator/investor. Shantsev said the government is looking for $300 million initially and will entertain bids from both Russia and abroad.

(GOJ)'s original operator dissolved following the collapse of the Soviet Union and the government has been keeping the airport afloat since then. "The only profit center was leasing fees and a modest number of domestic flights," Shantsev said. S7 Airlines (SBR) and UTair Aviation (TYU) operate at (GOJ). Austrian Airlines (AUL) ended service as part of its recent network reduction.

Nizhny Novgorod Region Department for International, Foreign Economic & Inter-regional Relations Director, Vadim Ivanov said that the local population has gotten used to traveling to Moscow, often by either car or train, in order to fly. The capital is about 250 miles to the east. But its airports are "now overloaded," he said, and the prospect of reaping the benefits of transforming (GOJ) into a transport hub and increasing cargo capacity eightfold have prompted the partnership with Hochtief and the search for investment and expertise.

INCDT: A UTAir (TYU) An-26 (RA-26010) nose wheel landing gear collapsed on landing at an airport in Russia. There were no injuries to the flight crew (FC) or those on board.

CRJ-200 (7298, VT-BGU), bought from Bombardier.

May 2010: 2 CRJ-200s (7135, VQ-BGO; 7220, VQ-BGR), bought from Bombardier.

June 2010: 2 757-2Q8s (29377, VQ-BEZ; 29382, VQ-BEY), ex-(OH-LBU; OH-LBX), and 2 CRJ-100s (7121, VQ-BGJ; 7128, VQ-BGL), ex-(C-GFNF; & C-GFNJ) deliveries.

July 2010: 737-46M (28549, VQ-BHZ), ex-(OK-CGT), delivery.

August 2010: Israeli media reports stated that El Al (ELA) has been unable to reach a membership agreement with any of the 3 global alliances and is considering launching its own alliance. The alliance would include airlines that are not members of Oneworld (ONW), Star Alliance (SAL) or SkyTeam (STM) alliances. According to the reports, El Al (ELA) hopes to include 3 Eastern European airlines as initial partners and believes the alliance could eventually reach 20 members. The alliance would be known as "Western-Eastern." Aerosvit (UKA), Armavia (ARZ) and UTair (TYU) have signed a letter of intent (LOI) with El Al Israel Airlines (ELA) with the aim to launch a 4th worldwide alliance of smaller carriers tentatively called "WE" which stands for Western-Eastern. The alliance is scheduled to be operational by the end of 2011.

October 2010: EL Al Israel Airlines (ELA) is in discussions with potential partners about forming an alliance initially centered on Eastern Europe and the Middle East. (ELA) has been talking to Russian carrier UTAir (TYU), Ukraine's Aerosvit (UKA) and Donbassaaero (UDC), and Armavia (ARZ) of Armenia about cooperation deals that would start with code sharing, according to (ELA) Alliance Manager, Stanley Morais.

The alliance (preliminarly dubbed (WE) for "West-East" — is still in the “development stage,” said VP Commercial Eli Cohen. But if (ELA) goes ahead with the plans, the group should later also include carriers in Asia and North America. (ELA) has recently shown interest in joining one of the 3 global alliances, but Morais said it was given the cold shoulder. He believes that the SkyTeam (STM), Oneworld (ONW) and Star (SAL) alliances are afraid their Arab customer base might choose the competition in the future if 1 of them accepted an Israeli airline. Cohen said (WE) could therefore be an “alliance of the miserables,” a group of carriers that is unwanted by the 3 global alliances for one reason or another. The focus on Eastern European carriers is based on the area's strong ties with Israel (>1 million Israelis stem from that part of Europe originally. Of the carriers in the potential group, only Aerosvit (UKA) operates long-haul) a single flight from Kiev to New York. Thus El Al (ELA) believed there is ample feed for its significant long-haul operation, which includes Toronto, New York, Los Angeles, Sao Paulo, Johannesburg, Mumbai, and Beijing. Today, (ELA) has almost no connecting traffic in Tel Aviv, mainly because of the unstable political situation and the severe security measures upheld at the airport. Passengers have to show up for flights at least 3 hours in advance and are subject to rigorous inspections and interviews. Cohen hoped that some of those measures could be relaxed if passengers fly in on other airlines and connect without leaving the airport. “We want to make Tel Aviv into a hub, but we are facing high hurdles,” he said.

The following are (TYU)'s codes.

(IATA) Code: UT. (ICAO) Code: UTA - (Callsign - TJUMAVI).

April 2011: UTair Aviation (TYU) signed a contract to purchase 20 ATR 72-500s, valued at $426 million at list prices. (TYU) said that it will use the airplanes to "add seat capacity on existing routes and will develop new routes in both" Russia and the Ukraine. The airplanes will bring the number of ATR airplanes operated by (TYU) and subsidiary UTair Ukraine to 37, which would give it Europe's largest ATR fleet, according to ATR.

It operates 12 ATR 42-300s and 3 ATR 72-200s in Russia, while UTair Ukraine operates 2 ATR 42-300s.

(TYU) (CEO) Andrey Martirosov said, "These airplanes have notably proven their ability to operate reliably and profitably not only in the European environment but in the harsh Siberian conditions." ATR (CEO) Filippo Bagnato added, "The Russian Federation and the (CIS) countries are providing us strong commercial opportunities as they expand their regional connectivity. Our airplanes are optimally positioned to face the increasing pressure on airlines' costs."

May 2011: 1st ATR 72-500 (942, VQ-BLC) delivery, also is 1st 1 of this type to be operating in Russia. The remaining ATR 72-500 airplanes will be delivered in 2011 and 2012. The delivery of these new 70-seater airplanes will bring the number of ATR airplanes operated by (TYU) up to 37, making UTair (TYU) the largest operator of ATR airplanes in Europe. With the entry into service of the 20 new ATR 72-500 airplanes, (TYU) will provide a higher number of seats on routes with increasing passenger demand. Today, the (TYU) network of routes on which ATR airplanes are operating, includes nearly 40 Russian and international destinations. Its territory extends from the Baltic States to Eastern Siberia and from the far north of Russia to south Ukraine. With the acquisition of the new ATR airplanes, (TYU) is also significantly opening up its route network to access new areas both domestically and internationally. Currently the (TYU) fleet consists of nearly 200 airplanes, most of which run on domestic routes to roughly 300 destinations. (TYU) has been operating ATR airplanes since 2006, when the company brought the 1st ATR airplane into operation in Russia.

4 ATR 72-500s (942, VQ-BLC; 945, VQ-BLD; 950, VQ-BLE; 951, VQ-BLF), deliveries.

June 2011: At the Paris Air Show, UTAir (TYU) announced orders for 33 737-800s and 7 737-900ERs. They will replace (TYU)'s older 737s and 757s.

3 ATR 72-500s (951, VQ-BLF; 952, VQ-BLG; 953, VQ-BLH), deliveries.

August 2011: UTAir (TYU) launched daily, Moscow Vnukovo to Riga service on August 16.

Sukhoi Civil Aircraft (SSJ) at the (MAKS) Airshow in Russia announced that a financial leasing contract was signed by Vnesheconombank subsidiary, (VEB) Leasing covering 24 SSJ100s to be operated by UTair (TYU). UTair (TYU) concluded a preliminary agreement in November 2010 with (SSJ) for the airplanes to replace its fleet of Tu-134s. (TYU) operates >300 daily flights on 200 routes using a 200 airplane strong fleet that includes Tu-154s, Tu-134s, 757s, 737s, ATR 72s and ATR 42s, Bombardier CRJ-200s, An-24s and Yak-40s.

737-524 (28914, VQ-BJV), ex-(N14653) 2011-08, ex-Vilnius delivery, and 2 737-8GUs (36386, VQ-BQR; 36387, VQ-BQS), (BLF) leased.

September 2011: UTair Aviation (TYU) has finalized an order for 40 737NextGen airplanes, comprised of 7 737-900ERs and 33 737-800s. The agreement was previously announced at the 2011 Paris Air Show. The order is valued at $3.8 billion at list prices.

SEE ATTACHED - - "TYU-2011-09 - 737 ORDER."

(TYU) ranks 4th in Russia measured by traffic (RPK)s after Aeroflot (ARO), Transaero (TRX) and S7 (SBR).

2 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 +4 more Tu-154Ms. As of this month, (URL) operated 3 Tu-154Ms that were allowed to fly to Europe.

According to (CEO) Sergey Skuratov, (URL) is planning to sell its 3 Tu-154Ms. In November 2006, (URL) took delivery of its 1st A320, which started its fleet renewal program. Now (URL) operates 13 A320s and 5 A321s. In 2012, (URL) is planning to acquire +4 more A321s.

Krasnodar-based (KIL) said it will use 8 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 3 A319s and 5 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 4th-biggest Russian carrier, still operates 21 Tu-154s; UTair-Express has 28 Tu-134s and 25 Antonov An-24s.

October 2011: UTair (TYU) launched a new route to Tel Aviv (TLV) in Israel on October 5. (TYU), which already serves the Israeli airport from Samara, now also flies weekly from Ufa (UFA) between the river Volga and the Ural Mountains. The flights, which are operated with 737-500s, are, however, operated 4x-weekly only, with no operations scheduled for the winter season.

UTair Aviation (TYU)) (CEO) Andrey Martirosov announced (TYU) will expand its fleet with wide bodies but is considering 767s. (TYU) will take delivery of its 1st airplane in 2012 and will need up to 10 airplanes but has not disclosed further details.

In 2010, (TYU) was the 4th-biggest airline in the country, operating mostly domestic routes. Its fleet comprises >200 airplanes, including 43 737s (737-200, 737-400, 737-500, 737-800), 14 ATR 42s, 11 ATR 72s (ATR 72-200, ATR 72-500), 15 CRJ-200s, and Soviet-made airplanes Tu-154 and Tu-134.

(TYU) wants to increase its international network but bilateral agreements make it difficult to get permission for scheduled flights.

1 737-8AS (29937, VQ-BJI), ex-(VQ-BDV), delivery.

November 2011: Lufthansa (DLH) will add Moscow’s Vnukovo Airport (VKO) to its route network beginning March 25, in a move that could set the stage for Russia’s 3rd largest carrier, UTair (TYU), to become a future Star Alliance (SAL) member.

(DLH) will transfer 2 of its 6 scheduled daily flights out of Frankfurt from Moscow Domodedovo Airport (DME) to (VKO). At the beginning of June, all Berlin to Moscow flights will move to (VKO). (DLH) flights from Munich, Hamburg and Dusseldorf will remain in (DME).

“Moscow is quite a big city and it is logical to fly to all 3 airports [the 3rd one is Moscow Sheremetyevo Airport (SVO)]; maybe we will fulfill that in several years,” said Ronald Schulz, (DLH) Group Regional Director Passenger Sales for the Russian Federation and the (CIS). Schulz said (DLH) wants to expand its cooperation with (TYU) to create more connections between the carriers’ flights in (VKO) but the company is not going to make any announcements about the possible Star Alliance (SAL) and (TYU) connection. The Star Alliance (SAL) is the only alliance without a Russian partner.

In 2006, Aeroflot (ARO) joined the SkyTeam Alliance (SKT), and a year ago, (S7) Airlines (SBR) allied itself with the Oneworld (ONW) Alliance (ONW).

In 2008, (DLH) announced plans to strengthen relations with Air Union, the alliance of 5 Russian carriers headed by KrasAir (ZXD). (DLH) moved from (SVO), to which it had been flying for 35 years, to (DME), but the Russian alliance went bankrupt in August 2008.

UTAir (TYU) (which is based in Moscow, Tyumen and Surgut (Eastern Siberia)) has a diverse network in Russia but is not represented significantly in the Far East of Russia. The 2nd biggest Russian carrier, Transaero (TRX), was never rated as a member of an international alliance and works with travel companies flying Russian tourists to world wide destinations.

1 ATR 72-212A (VQ-BLK), ex-(F-WWET), delivery.

December 2011: UTAir (TYU) is a major Russian airline based in western Siberia operating scheduled passenger & cargo jet airplane services linking >60 destinations across Russia, Armenia, Azerbaijan, Germany, and Kyrgyzstan. (TYU) is the world's largest operator of Russian-built helicopters, with extensive operations in support of oil and gas production in Siberia and United Nations (UN) operations around the world.

(IATA) Code: UT. (ICAO) Code: UTA - (Callsign - UTAIR).

Parent organization/shareholders: Central Surgut Depositary (75.69%); & others (24.31%).

Alliances: Donavia (DON).

Main Bases: Khanty Mansiysk Airport (HMA); Surgut Airport (SGC); and Tyumen Airport (TJM).

Hub: Moscow Vnukovo Airport (VKO).

UTAir (TYU) employs >1,800 cabin attendants (CA).

January 2012: The UTair Group carried 6.75 million passengers in 2011, up +31.1% over the previous year.

The group includes Russian passenger carriers UTair (TYU), UTair-Express and Vostok; Ukraine-based UTair-Ukraine; cargo carrier UTair-Cargo; and several helicopter operators. The group does not separate its airline and helicopter figures.

In 2010, UTair (TYU) carried 4.42 million passengers, making it Russia’s 2010 4th largest carrier; it moved up to 3rd place in 2011.
The group’s business plan calls for it to carry nearly 10 million passengers in 2012.

(TYU) has introduced new routes from its Moscow Vnukovo base and other airports:
Mineralnye Vody - Yerevan: 3x- weekly 737-500 service has started on November 30;
Moscow Vnukovo - Bukhara: 3x- weekly 737-800 service has started on August 20;
Moscow Vnukovo - Kurgan: daily CRJ-200 service has started on December 2;
Moscow Vnukovo - Magas: daily 737-500 service has started on September 26;
Moscow Vnukovo - Minsk International 1: daily ATR 72-500 service has started on September 1;
Moscow Vnukovo - Samarkand: 3x- weekly seasonal 737-800 service has started on August 16;
St Petersburg - Khanty-Mansiysk: weekly CRJ-200 service starting on January 8;
St Petersburg - Naryan-Mar: 6x- weekly CRJ-200 service (already launched);
Ufa - Tel Aviv Ben Gurion: weekly 737-500 service has started on October 5.

Russian aviation authorities have postponed implementing new regulations requiring all Russian airplanes with a maximum takeoff weight of no >5,700 kilos to be equipped with a Traffic Collision Avoidance System (TCAS) and an Enhanced Ground Proximity Warning System (EGPWS). The new rules, which were to take effect January 1, were delayed because Russian Prime Minister Vladimir Putin said during his December trip to the Russian Far East that carriers were not prepared for it.

Airline experts say that regional carriers will suffer the most from the new regulations because the cost of the new equipment, including installation, is estimated to be RUR 6 - 10 million/$192,000 - $320,000) per airplane. It is not profitable to install it on old Tupolev Tu-134s and Antonov An-24s, the base of most Russian regional airlines’ fleet. Some carriers have announced plans to significantly reduce their Soviet-built fleets.

At the end of 2011, authorities changed the minimum requirements to receive an Air Operator’s Certificate (AOC) from 10 to 8 airplanes with >55 seats, although there is still a possibility the minimum will increase to 20 airplanes. Local authorities believe this measure should improve aviation safety.

(TYU)'s fleet includes 41 737s, 21 Tu-154s, 17 ATR 72s, 14 ATR 42s, 15 Bombardier CRJ-200s and 4 757-200s. Last year, (TYU) ordered 40 737s.

UTair airline (TYU) has signed a leasing agreement with Sberbank Leasing Company for 2 737-800s and 5 737-500s for 5 years, in a deal estimated to be worth $100 million. According to (TYU), the airplanes were delivered at the end of 2011.

Sberbank Leasing said 1 of its main company strategies is to strengthen positions in the aviation market. After the 1st 9 months of 2011, the company had a backlog worth >RUB202 billion/$6.5 billion.

UTAir (TYU) has added 5 ex-Moskva Air Company 737-800s and has finalized an order for 24 SSJ-100s that will be leased from (VEB)-Leasing. (TYU) is also planning to add up to 10 767-300ERs for scheduled services to North America as well as charter services to Egypt and SE Asia.

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).

UTair (TYU) launched its fourth route to Uzbekistan out of its Moscow Vnukovo (VKO) hub on 10 February. (TYU) now flies once a week to Fergana (FEG) with 737-800s. While (TYU) faces no direct competition at Vnukovo, three airlines operate to Fergana from Moscow Domodedovo; Uzbekistan Airways (UZB) twice-weekly, Moskovia Airlines (GAI) once weekly and VIM Airlines (MOV) also once a week.

March 2012: UTair (TYU) has signed a code share agreement with Turkish Airlines (THY. The agreement gives (TYU) access to (THY)’s 129 destinations including domestic flights starting at Istanbul Ataturk (IST).

From March 25, (THY) will transfer all flights from Istanbul, Ankara and Antalya to Moscow from Sheremetyevo (SVO) and Domodedovo (DME) to Vnukovo (VKO).

(TYU) is headquartered in Tyumen, Western Siberia, and (VKO) is one of its base airports. (TYU) (CEO), Andrey Martirosov said (TYU), which carried more than >1 million passengers between the countries on charter flights, should begin to see these charter flight customers book scheduled flights.

After Lufthansa (DLH) announced it would transfer several flights between Germany and Moscow from (DME) to (VKO), market experts said the move could set the stage for (TYU) to become a future Star (SAL) Alliance member. (THY) has become the second biggest Star (SAL) Alliance carrier to move to (VKO). (THY) (CEO), Temel Kotil said he would be happy to invite (TYU) into the Star (SAL) Alliance.

(TYU), Russia’s third largest carrier, increased its 2011 traffic 31.3% to 5.8 million people. Martirosov said in 2012, it plans to nearly double this number.

Russia’s Ministry of Transport is aiming to liberalize the country's international airline market by establishing a new system for choosing which carriers will operate on international routes.

According to Russian authorities, carriers will now have to possess an (IATA) Operational Safety Audit (IOSA) certificate, incur no tax debt and demonstrate a high level of flight regularity.

Transaero Airlines (TRX) last year accused the Ministry of Transport of restricting competition and supporting a monopoly. (TRX) said the regulator withdrew permission for (TRX) to operate charter flights from Moscow to Rome, Milan and Venice in the winter season. (TRX) claimed the ministry withdrew permission under pressure from Aeroflot (ARO), which is a designated carrier on Russia-to-Italy routes.

The ministry wants to establish a commission to adopt the new criteria, which will be measured using a points system. For example, a carrier will receive the most points if it eliminates safety defects. In addition, a carrier will have an advantage if it operates new Russian-built airplanes (such as the Sukhoi Superjet SSJ100, Antonov An-148 or the Tupolev Tu-204.

UTair (TYU)) sent a letter to the Russian Association of Air Transport Operators stating the new points system and criteria will not create a transparent environment for competition. (TYU) said that authorities will violate antitrust laws if advantages are given to operators of new Russian airplanes.

UTair (TYU) is reportedly planning to make use of the void left by Vladivostok Air (VLK) switching from Moscow Vnukovo International airport (VKO) to Moscow Sheremetyevo International airport (SVO) by launching new domestic long-haul services from Moscow Vnukovo airport to Vladivostok airport (VVO) using a 1st 767-200ER.

April 2012: ACCDT: A UTair ATR72-201 (PW124B) (332, /92 VP-BYZ) airplane crashed Monday morning April 2nd shortly after taking off from Tyumen in Siberia on its way to Surgut with 39 passengers and four crew members. The BBC has reported that 31 of the 43 people onboard were killed.

According to the "Itar-Tass" news agency, the crew of 2 pilots (FC) and 2 flight attendants (CA) were among those who died - - however, "locals" said the first officer survived.

Flight 120 is reported to have crashed at around 5:30 am local time. UTair (TYU) said on its website that the pilot (FC) had been trying to make an emergency landing when the airplane crashed. It broke up and a fire erupted, according to the Aviation Safety Network.

“The Russian Interstate Aviation Committee (MAK) will lead the investigation and will be the official source of information. According to international regulations, ATR will advise the French Bureau d'Enquêtes et Analyses (BEA), safety investigation authority representing the state of the aircraft manufacturer. At this time, the circumstances of the accident are still to be determined.

The (MAK) reported the black boxes have been successfully read out, the data of the accident flight have been located. Analysis of the data is in progress.

UTair (TYU) has grounded all its ATR 72-200s following the crash of a (TYU) ATR 72-200 airplane on April 2nd morning shortly after taking off from Tyumen in Siberia on its way to Surgut, killing 31. The airplane was carrying 39 passengers and 4 crew members (FC)/(CA).

(TYU) (CEO) Andrey Martirosov said (TYU) was confident of the technical condition of the airplane, but that all 3 ATR 72-200s will be grounded pending the outcome of the investigation. (TYU) plans to replace the grounded airplanes with ATR 72-500s. According to (TYU)’s website, it had 3 ATR 72-200s and 15 ATR 42s.

The Interstate Aviation Committee (MAC), which is responsible for airline incidents investigations in Russia and several (CIS) republics, reported that after taking off, the ATR 72 rose to an altitude of 210 meters then banked to the right 35 degrees, then to the left >50 degrees. The airplanes’ engines were working until the moment of the crash.

The Federal Air Transport Agency Rosaviatsia Head, Aleksandr Neradko told journalists that the airplane wasn’t de-iced but that authorities did not believe that icing was a factor.

Later (July 2013), Russia’s Interstate Aviation Committee (IAC) has blamed deicing procedures for a UTair (TYU) ATR 72-200 crash in Tyumen in April 2012. According to (IAC), deicing procedures were rejected before the flight. The committee concluded there were snow and ice sediments on the airplane surface, which led to a deterioration of aerodynamic characteristics.

The (IAC) added in its report that (TYU)-Technic limitations in pilot (FC) training and ground handling, also contributed to the crash.

According to the committee report, at the time of the crash, there was no basic document regulating standards for deicing procedures; this was issued in February 2013.

The airplane crashed shortly after taking off from Tyumen in Siberia on its way to Surgut with 39 passengers and 4 crew members, killing 33. (TYU) temporarily grounded its ATR 72-200 fleet following the crash. (TYU) operates 2 of the type and 20 ATR 72-500s.

(TYU) launched weekly, Moscow Vnukovo (VKO) - Yoshkar-Ola service on April 11, and 2x-daily (VKO) - Tambov service on April 8.

UTair Ukraine (UTN) ((IATA) Code: QU based at Lugansk airport (KBP)) has taken delivery of its 1st ATR 72-500 (994, UR-UTH) on April 25. It plans to add another 4 ATR 72-500s as part of the order placed earlier by parent, UTair (TYU), based at Khanty-Mansiysk airport (HMA) and will also lease 3 CRJ-200s to launch new routes within Ukraine and between Ukraine and Russia.

May 2012: UTair (TYU) launched services from Nizhny Novgorod to Kazan.

The Russian Federal Air Transport Agency, Rosaviatsia announced it will spend RUB219.4 million/$7.2 million to subsidize 5 carriers that service Kaliningrad (KGD) – Moscow and (KGD) – St Petersburg routes. The program runs through September 15.

Aviation authorities signed contracts with 5 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.

UTair (TYU) will add the remaining 8 767-222ERs still operated by United Airlines (UAL) and inherited from the merger with Continental Airlines (CAL) between May 2012 and the end of next year. The 1st 767-222ER (30435) is currently being prepared at Orlando International airport (MCO) and is expected to be delivered next month.

Boeing Shanghai Aviation Services signed an agreement with UTair Aviation (TYU) to provide engineering solutions to support its incoming fleet of up to 8 767-200ERs. It will help the airline develop a maintenance program, develop new interior configurations and prepare a modification program to meet European and Russian aviation authorities' requirements. It will also provide heavy maintenance of the 1st 767 to be introduced to UTair (TYU)'s fleet in July.

(TYU) will lease 8 767-200ERs which will be delivered in 2012 - 2013. (TYU) will receive the 1st 767 in June or July. (TYU), which did not disclose the leasing company, said the airplanes will operate on the Russian Far East routes.

(TYU), Russia’s 3rd biggest carrier, served 5.8 million passengers in 2011, +31.3% more than the previous year.

(TYU) does not have any long-range wide bodies in its fleet and its route network does not include Far East destinations.

Since Lufthansa (DLH) moved some of its Moscow flights from Domodedovo (DME) to Vnukovo Airport (VKO), industry analysts have said the move could help (TYU) become a future Star (SAL) Alliance member.

Yak-42D (4520423914323, RA-42373), delivery.

June 2012: UTair (TYU) reported a 2011 net profit of +RUB261.2 million/+$8 million, up +21% from 2010. Revenue rose +27.6% year-over-year to RUB54.13 billion.

In 2011, (TYU) carried 6.7 million passengers, up +30.8% from 2010. Passenger traffic totaled 11.12 billion (RPK)s, a +39.3% increase. (TYU) credited its growing network for the results.

In 2010, (TYU) launched flights to 48 new destinations, most of them from Moscow Vnukovo airport (VNK). This year, (TYU) plans to expand its network to the Russian Far East.

(TYU) will take the delivery of its 1st Boeing 767 this summer to operate on domestic long-haul routes. (TYU) will begin to use the 767s on routes from Moscow to Surgut and Tyumen in Western Siberia; later, (TYU) will launch domestic flights to the Russian Far East. Though (TYU) has a diverse route network in Siberia and the European part of Russia, it still does not fly to cities in the Far East.

The UT Group, which includes UTair Express and UTair Ukraine (UTN), operates a fleet of >200 airplanes, including 30 737-500s, 9 737-800s, 7 737-400s and 6 757-200s.

UTair (TYU) began operating 2 new international routes out of Surgut (SGC) in Siberia this month, each operating once a week, seasonally with 737-500 airplanes until the end of September. On June 12, (TYU) launched a route to Baku (GYD), the capital of Azerbaijan, and on June 18 to Simferopol (SIP) on the Ukrainian peninsula Crimea.

The Russian Ministry of Transport has amended its Air Code, allowing carriers to introduce non-refundable tickets. Currently, Russian airlines have to pay 8% in refunds to passengers who cancel their flights 24 hrs before the flight. In 2010, the refunds amounted to RUB22.7 billion/$700,000.

Russian authorities said foreign carriers operating scheduled flights to Russia sell nonrefundable tickets, which allows them to offer sales with lower prices, giving an unfair advantage over Russian carriers on international routes.

The Ministry said the nonrefundable rates will increase population mobility, which is -9.3 times lower than in the USA and -2.9 times lower than in Russia in 1990.

July 2012: UTair (TYU) made a $2.1 billion firm order for 20 A321s.

ATR 72-212A (1036, UR-UTK), ex-(F-WWEM) delivery and leased to UTair Ukraine.

August 2012: UTair (TYU) has chosen (CFM) International’s (CFM56-5B) engine for its fleet of 20 A321 airplanes, part of an airplane deal announced at the Farnborough Airshow.

The engine order is valued at $420 million at list prices; delivery is scheduled to begin in 2013. (TYU) also signed a long-term rate-per-flight hour agreement for 40 engines.

(TYU) operates a fleet of (CFM56)-powered 737NGs.

The new A321s, which will be configured for 220 passengers, will be used on domestic and international tourist routes.

The UT Group (which includes (TYU), UTair-Express and UTair-Ukraine (UTN)) operates a fleet of >200 airplanes, including 31 737-500s, 9 737-800s, 7 737-400s and 6 757-200s. In 2011, (TYU) carried 6.75 million passengers; this year it plans to carry 10 million passengers.

October 2012: Russia’s aviation authorities will allow local carriers to employ foreign pilots (FC), as it deals with a rising shortage of qualified pilots (FC) in a fast-growing airline market.

Speaking at the "Wings of Russia" forum, Deputy Minister of Transport, Valery Okulov said the changes, which will be written as air code and migration legislation, will be published on the Ministry of Transport website soon. Authorities did not specify when it will implement the changes.

Until now, only Russian citizens can be pilots (FC) with local carriers, according to Russia’s air code. Okulov said the government will invest Rub250 million/$8 million in pilot (FC) training.

Russian and Czech aviation authorities have signed a new air service agreement (ASA) and added one more designated carrier from each country on the Moscow - Prague route.

According to a memorandum of understanding (MOU) concluded by the countries' aviation authorities this September, the new document will be signed in 2013. It was decided that from the date of signature of the new (ASA), each country may designate a second airline to operate scheduled services on the Moscow - Prague route with up to seven weekly frequencies. Now only Russian Aeroflot (ARO) and Czech Airlines (CSA) can perform the flights between these cities. Both of the carriers are SkyTeam (STM) alliance members.

Authorities of both countries also agreed that if they fail to sign the new agreement by September 1, 2013 they will hold a consultation by September 15, 2013 to review the status of internal procedure relating to the new agreement and to designate the second airline from each side.

Market experts say that the countries will not sign the agreement before September 1, 2013 because the document needs approvals from different organizations, including the Russian Ministry of Foreign Affairs. The 2nd designated carrier is therefore unlikely to start earlier than the fall of 2013.

Russia’s main carriers, including Transaero (TRX), (S7) Airlines (SBR) and UTair (TYU), are expected to apply for the rights for the Moscow - Prague route. On the Czech side, Smart Wings (TVS) is expected to apply.

Row 44, of Westlake Village, California, USA was selected by UTair Aviation (TYU) to provide in-flight connectivity services. With the Row 44 platform, (TYU) will provide its passengers with the ability to enjoy high-speed, reliable Internet access, as well as premium entertainment content, including a selection of live TV channels, delivered directly to their WiFi-enabled devices.

"We are operating in a technology-rich era where we see passengers today are more connected than ever to their friends, family, and businesses. Row 44 offers the only platform that both meets our desire to provide our passengers with reliable, affordable broadband, and the cutting-edge ability to deliver it to the devices passengers already use on board," said Andrei Martirosov (CEO) of (TYU). "Moreover, we will be well able to adapt effectively to ever-evolving personal and business connectivity requirements of our passengers and our airplanes."

Installations are expected to begin on (TYU)'s airplanes in the 3rd quarter of 2013. (TYU) is the 2nd airline in Russia to choose Row 44. As of 1st quarter 2013, Row 44 will operate services across North America, the Atlantic Ocean, Continental Europe, North Africa, the Middle East, South Africa and Russia. Row 44 has also expanded its corporate and network operations to Moscow to support business growth in the Russia and the (CIS) region.

(TYU) plans to outfit 4 737-800s and 3 767s in the 2013 2nd half. Later it plans to add Wi-Fi Internet access on its new 737NGs, which were ordered at Paris Air Show in 2011 and A321s, which were ordered at July’s Farnborough Airshow.

November 2012: UTair (TYU) inaugurated services from Surgut (SGC) in Siberia, often described as the oil capital of Russia, to Krasnojarsk (KJA), Siberia’s most beautiful city according to the poet Anton Chekhov. Weekly services on the 2,200 km route are operated by (TYU) with ATR 42s via Igarka (IAA), a riverine port located at Yenisei, 160 km north of the Arctic Circle. Notably, services to Igarka are heavily weather-dependent; the airport’s location on an island means that access is reliant on either ice crossing or ferry service. Competition on the route comes from Yakutia Airlines (SYL), which serves Krasnojarsk and Surgut via Tomsk. From Surgut, UTair (TYU) currently offers a total of 18 domestic destinations, 4 of which are served with intermediate stops.

UTair (TYU) started flying the domestic Russian route from Moscow Vnukovo (VKO) to Kursk (KRS), which is located near the border with the Ukraine. 6x-weekly flights will be operated on the route, which is (TYU)’s 2nd domestic route from the Moscow airport after Tambov, also in the European part of Russia, which is currently served with 11x-weekly flights. An-24, 44Y-seater turbo-props, will be deployed to operate on the route.

The UTair Group is considering an initial public offering (IPO) in 2013 to raise $100 to $350 million in overseas stock offerings. “We are poised to grow further and need money to expand. We are adding routes within the country and want to fly more abroad and we are expanding our helicopter business as demand for our services is on the rise,” UTair (TYU) (CFO) Igor Petrov told "Bloomberg." But the group may also decide to sell a stake in a private placement, Petrov said.

Group representatives did not specify which stock exchange it would choose for the (IPO) or which part of the shares will be sold.

The UTair Group is planning to purchase an assortment of airplanes, including 20 A321s, 40 737s and 103 helicopters by 2017 as it upgrades its fleet, Petrov said.

(TYU), which is the 3rd largest airline in Russia, carried 5.8 million passengers in 2011. During the 1st 9 months of 2012, (TYU) carried 5.9 million passengers.

The group (which also includes UTair-Express, UTair-Ukraine, UTair-Cargo and several helicopter operators in Russia, Europe, India, South Africa and Latin America) operates >550 airplanes, including nearly 200 airplanes and >350 helicopters.

UTair Aviation (TYU) and (VEB)-Leasing have signed a financing deal for the delivery of 20 A321s (TYU) ordered at the Farnborough Airshow. (TYU) did not disclose details of the agreement, but sources said it was a sale/leaseback deal. The airplanes have not yet been delivered.

According to (TYU) (CFO) Igor Petrov, “The financing scheme embodied with (VEB)-Leasing was applied on the Russian market for the 1st time.” The 1st payment was made by (VEB)-Leasing on October 5. The (TYU) A321 order is valued at $2.3 billion at list prices. (TYU) plans to take the delivery of the 1st 2 airplanes in the 2nd quarter of 2013. The last airplane will be delivered in November 2015.

Russian airlines carried 57 million passengers during the 1st 9 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 5 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: UTair (TYU), the parent company of UTair Ukraine (UTN), commenced daily operations on the route from Moscow Vnukovo (VKO) to Kiev Zhulyany (IEV) on December 3. Notably, (TYU)’s Ukrainian subsidiary (UTN) launched also daily flights on the route in early September, and this week’s launch is a de facto doubling-up of frequencies. (TYU) will operate the route with 737-700s.

(TYU) inaugurated services on the 270 km route across the Black Sea from Adler/Sochi (AER) to Trabzon (TZX) in Turkey on December 17. (TYU) now offers 2x-weekly frequencies on the route, both of which are operated using 737-500s. On the same day, (TYU) also commenced domestic flights from Arkhangelsk (ARH) to Naryan-Mar (NNM), located north of the Arctic Circle. 48-seater, Antonov 24s operate the route with 3x-weekly frequencies. Competition comes from Nordavia (AEN)’s 13 weekly departures.

January 2013: UTair (TYU) launched a domestic, 1,400 km route from Moscow Vnukovo (VKO) to Nalchik (NAL) on January 15. The daily frequencies between the Russian capital and the mountain resort located in the Caucasus foothills are operated with 1 of (TYU)’s 113-seat 737-500s, providing competition to Grozny Avia’s daily departures operated with slightly larger (120 seats) Yak-42s.

Russia’s Transaero Airlines (TRX) and UTair Aviation (TYU) have signed a multilateral agreement with Moscow’s Vnukovo Airport to establish interline connections and through rates. The agreement will allow passengers to transfer between (TYU)’s domestic and (TRX)’s international flights.

Approximately 87% of UTair (TYU)’s network is domestic. (TYU) will launch daily, Moscow Vnukovo - Yekaterinburg 757-200 service on February 4.

Transaero Airlines (TRX) signed a multilateral agreement with UTair Aviation (TYU) to establish interline connections via Moscow Vnukovo to cities in Russia, the (CIS), the USA, and western Europe.

February 2013: Russia’s aviation authorities have announced they will permit 200 foreign Captains (FC) and instructors to work for local airlines over the next five years.

Russia’s Ministry of Transport has prepared amendments for its air code that will allow Russian airlines to hire foreign pilots (FC). Those changes are being discussed by other Ministries and Government Departments that would be involved or affected by the change, Mikhail Gubanov, a representative of Federal Air Transport Agency, Rosaviatsia told an aviation conference in Moscow.

Gubanov said attracting Captains and instructors from other countries was necessary because of a pilot (FC) shortage in Russia. The possibility for a change in law was 1st raised last year.

UTair (TYU) launched 2 domestic routes from its Moscow Vnukovo (VKO) base on February 4, and now offers flights to a total of 47 destinations across the Russian Federation from the Moscow airport. 5x-weekly flights to Chelyabinsk (CEK), located just to the east of the Ural Mountains, are now operated using 737-900s, while daily 737-500 flights depart for Ekaterinburg (SVX) on a daily basis. RedWings (RWZ) used to provide competition on both routes, which it used to serve each with 5x-weekly frequencies. In addition, Transaero (TRX) and Gazpromavia (GZP) serve the market from Moscow Vnukovo to Ekaterinburg, respectively, with 4x- and single-weekly frequencies.

(TYU) will launch 2x-weekly St Petersburg - Budapest 737-500 service on April 28. (TYU) is launching Rostov-on-Don - Frankfurt service June 2. (TYU) is introducing weekly, Ulyanovsk - Munich, Rostov - Frankfurt using 737-500s. Increasing to 3X-daily, Moscow - Saint Petersburg, Moscow - Perm. Moscow - Hannover and Moscow – Gelendzhik move to daily from 3x-weekly.

April 2013: UTair (TYU) launched daily, Yekaterinburg - Moscow 767-200 service.

May 2013: UTair (TYU) earned +$6 million net profit in 2012. Only half of (TYU)'s revenue comes from airline service, however, as it also operates a huge fleet of helicopters and has a number of other business activities. It has become Russia's 3rd busiest airline by traffic after Aeroflot (ARO), and TransAero (TRX). It has ordered 40 737-800s and 737-900ERs.

UTair (TYU) commenced services on the 1,600 km route from St Petersburg (LED) to Budapest (BUD) on 28 April, which was previously served by the Hungarian flag carrier, Malév (HGA), before its demise in January 2012. 2x-weekly flights are now offered by UTair (TYU) using 737-500s.

UTair Aviation (TYU) begins daily, Moscow Vnukovo - Odessa service on May 24.

Russia’s Federal Air Transport Agency, Rosaviatsia, has banned its carriers from flying over Syria after a Nordwind Airlines (NWD) Airbus A320 crew spotted combat activity and felt threatened during a flight from Sharm el-Sheikh to Kazan on April 29. The flight landed safely.

At the end of February, Rosaviatsia advised carriers to avoid Syrian airspace, but several smaller airlines continued to use it. After this incident, authorities warned airlines that their “commercial interests can’t prevail [over] the passengers’ security.”

Rosaviatsia reminded carriers that in October 2001 a Sibir Tupolev Tu-154 was fired upon during a Tel-Aviv - Novosibirsk flight over the Black Sea during Ukrainian force maneuvers. All 78 people onboard were killed.

Russia’s largest carriers stopped flights when the original order was given in February. UTair Airline (TYU) stopped overflying Syria at the end of March, and is now using alternative routes.

ACCDT: On May 18, a UTair (TYU) 737 with 130 on board had its landing gear catch fire as it was landing at Moscow Vnukovo airport after flying from the southern city of Stavropol. The passengers evacuated the airplane by jumping off one of its wings and sliding down its evacuation slide. None of the passengers and crew members were injured.

June 2013: UTair (TYU) will begin weekly, Syktyvkar - Sochi and - Anapa with 737-500s. (TYU) began 2x-weekly, Surgut - Bugulma, and weekly, Surgut - Volgograd – Cheboksary. Surgut flights will be flown with Bombardier CRJ200s.

UTair (TYU) is looking for investors to develop a low-cost airport at Yermolino in the Kaluga region. According to the "Vedomosti" newspaper, (TYU) (CEO), Andrey Martirosov said the airport needs $200 million to build facilities that can handle nearly six million passengers per year. (TYU) is able to be the sole investor, but Russia’s antimonopoly authorities are against (TYU)’s participation. UTair (TYU) plans to base its Airbus A321s, which it ordered at last year’s Farnborough Airshow, at Yermolino.

In the beginning of the year, Russian Prime Minister, Dmitry Medvedev issued a resolution that allowed (TYU) to have a base at the airport. UTair (TYU) spokeswoman, Elena Galanova explained that at the end of 2012, the government increased the number of airlines that can fly from Yermolino. Before that, only Ministry of Defense and Ministry of Internal Affairs airplanes could be based there. Now the airport is preparing the runway infrastructure and applying for certificates to work with the most popular civil airplane types.

UTair (TYU) has signed an agreement with Aeroexpress and Russian Railways to build a direct railway line from Moscow to Yermolino.

July 2013: UTair (TYU) and Transaero (TRX) have agreed on a strategic partnership under which they are to co-operate to build networks, share fares and merge frequent-flyer programs. The two Russian airlines plan to "leverage" and "develop" their respective networks from Moscow's Vnukovo International airport.

They will also share information on "modern best-practice standards and advanced business technologies," and foresee forging interline and revenue-sharing agreements. There are also plans for the carriers to synchronise flight schedules and frequencies to "achieve the most convenient flight connections" at the airports from which both operate.

UTair (TYU) added a daily flight to its 2x-daily, Moscow - Perm service.

Russia’s Interstate Aviation Committee (IAC) has blamed deicing procedures for a UTair (TYU) ATR 72-200 crash in Tyumen in April 2012. According to an (IAC) statement, deicing procedures were rejected before the flight. The committee concluded there were snow and ice sediments on the airplane surface, which led to a deterioration of aerodynamic characteristics.

The (IAC) added in its report that UTair (TYU)-Technic limitations in pilot (FC) training and ground handling, also contributed to the crash.

According to the committee report, at the time of the crash, there was no basic document regulating standards for deicing procedures; this was issued in February 2013.

The airplane crashed shortly after taking off from Tyumen in Siberia on its way to Surgut with 39 passengers and 4 crew members, killing 33. UTair (TYU) temporarily grounded its ATR 72-200 fleet following the crash. (TYU) operates 2 of the type and 20 ATR 72-500s.

UTair Aviation (TYU) has taken delivery of its 1st of 20 Airbus A321s ordered at the Farnborough Airshow in 2012. The deal, which is valued at $2.3 billion at list prices, is financed by (VEB)-Leasing. Deliveries are scheduled before the end of 2016.

UTair (TYU) plans to operate the 220Y-seat A321s, powered by (CFM56) engines in a single-class layout, on high-demand domestic and international destinations. (TYU) is expected to launch A321 operations at Yermolino Airport in the Kaluga region.

(TYU) operates a fleet of >200 airplanes, which include a mix of Boeing (TBC), Tupolev, (ATR), Bombardier (BMB), Antonov and Yakovlev airplanes.

Later this year, UTair (TYU) will take delivery of its 1st of 40 Boeing 737NGs (comprising 7 737-900ERs and 33 737-800s) ordered at the 2011 Paris Air Show.

SEE ATTACHED - - "TYU-2013-07 - NEW A321."

August 2013: UTAir (TYU) will stop using its Tupolev Tu-154 airplanes before the end of the year, (TYU) (CEO) Andrey Martirosov said.

(TYU) has signed a lease agreement for 6 Sukhoi Superjet 100LRs (SSJ100LRs) with Sukhoi Civil Aircraft Company (SCAC) (SSJ) and (VEB) Leasing at the (MAKS) Airshow in Moscow. The deal is valued at $217.2 million at current list prices.

September 2013: The Russian government is considering Ramenskoye Airfield and Yermolino Airport as possible airports for low-cost carriers (LCC) in the Kaluga region, the "Kommersant" newspaper has reported. The new locations are necessary as Moscow’s three existing airports (Domodedovo, Sheremetyevo and Vnukovo) will not be able to handle expected high levels of passenger growth.

In addition, Aeroflot (ARO) and UTair (TYU) have disclosed their plans to launch a Low Cost Carrier (LCC) subsidiary, which will increase the number of passengers in Moscow. "Kommersant" said Aeroflot (ARO) plans to base its (LCC) at Domodedovo airport, while UTair (TYU) has chosen Yermolino.

According to UTair (TYU) (CEO) Andrey Martirosov, even if capacity reduces at Moscow’s existing airports, they will reach their peak capacity in a couple of years. During the 1st 7 months of 2013, passenger numbers have grown +14.9% to 56.361 million. Martirosov added that with minimum investments, Yermolino could handle 6 to 10 million passengers per year.

Using Ramenskoye as a civil airport has been discussed for a couple of years. It is located 40 km SE of Moscow, near Zhukovsky. It is currently used as a major airplane testing facility and as a base for Ministry of Emergency Situations. The airfield is a part of Gromov Flight Research Institute and hosts the (MAKS) Air Show every 2 years. The main problem facing officials is how to combine the flight-testing aerodrome, which is used for military airplanes, with a civil airport.

Moscow’s 4th airport, Bykovo, situated not far from Ramenskoye, handled regional flights during the (USSR) period. During 1970s and ‘80s, it operated 525 - 550 flights per day. However, the government does not consider it a new airport for Moscow, even though it is situated not far from the city. In 2010, it stopped operations and was turned into a car parking facility for car sales companies.

October 2013: UTair (TYU) began weekly charter, Surgut - Sanya and Tyumen - Sanya 767-200 service.

UTair (TYU) has begun a new link to Germany, this time to Dresden (DRS) from Moscow Vnukovo (VKO). The 2x-weekly service will be flown by (TYU)’s 737-800s, with no direct competition on this particular airport-pair. (TYU) will predominantly be flying Russian tourists to and from Dresden. “The city of Dresden is one of the main centers of European culture,” added UTair (TYU) Head of Promotion, Natalya Nikolaeva - - SEE NATALYA (FAR RIGHT) ON PHOTO - - "TYU-9-NATALYA NIKOLAEVA - 2013-10.

(TYU) also will launch 2x-weekly, Noyabrsk - Saint Petersburg 737-500 service on October 29.

(TYU) took possession of a Next-Generation 737-800 jet airliner that marks the 1st of 40 Next-Generation 737 commercial airplanes from The Boeing Company (TBC) in Seattle.

UTair-Express has launched ATR 72-500 flights on routes from Moscow to Voronezh and Kirov. The ATR 72-500s were transferred from parent carrier UTair Aviation (TYU) as part of its fleet renewal program.

UTair Airline (TYU) (CEO) Andrey Martirosov said there will be 4 types of airplanes in the parent carrier’s fleet (Boeing 737s, 767s, 757s and Airbus A321s).

(TYU) said in August it will stop using Soviet-era Tupolev Tu-154 airplanes before the end of the year, while UTair-Express will cease Tu-134 flights in 2014. The group has signed a memorandum of understanding (MOU) for 30 MC-21 airplanes and a lease agreement for 6 Sukhoi Superjet 100LRs.

November 2013: UTAir (TYU) unveiled widespread expansion of its route network under its winter 2013 flight schedule. UTAir (TYU) (currently, the 3rd largest in Russia behind Aeroflot (ARO) and Transaero (TRX)) has partnered with tour operator Anex-Tour to launch 56 seasonal charter routes from destinations across Russia, including 25 entirely new services. Among these are Surgut, Tyumen and Yekaterinburg to the Chinese city of Sanya (operated by (TYU)'s wide body 767s), while Phuket, Thailand and Goa, India, will be linked to four and 11 Russian cities, respectively - - SEE ATTACHED - - "TYU-2013-11 - 25 NEW ROUTES."

December 2013: Russia’s UTair Airlines (TYU) expects to carry 13 million passengers in 2014, up +43% from 2013. Revenue is expected to exceed >RUB95 billion/$2.88 billion. In 2013, (TYU)’s 1st-half revenue rose +32.5% to $989.8 million while profit dropped -63% to $8.73 million.

According to UTair (TYU)’s business plan, the growth will be due to its fleet renovation plan. (TYU) will take delivery of 22 modern aircraft, including Airbus A321s, Boeing 737-800s, 737-900s and Sukhoi Superjet SSJ100s. By the end of the year, it plans to ground >50 airplanes, including its Soviet-era Tupolev Tu-154s.

In June, (TYU) will receive the 1st of 6 Sukhoi Superjet 100s (SSJ100s) on order; deliveries will be complete in December 2014.

Four Russian airlines (Aeroflot (ARO), Yakutia, Moskovia Airlines and Gazpromavia) operate the SSJ100.

During 2014, (TYU) will optimize its route network and launch new destinations in Russia and abroad.

UTair (TYU) is the 3rd largest airline in Russia. During the 1st 10 months of 2013, it carried 7 million passengers, up +6% from the year-ago period. Its route network mainly covers destinations in Russia; however, UTair (TYU) also operates flights from Moscow to Hannover, Dresden, Brno, and from Saint Petersburg to Budapest.

UTair Aviation (TYU) has added an additional daily, Rostov-on-Don to Moscow (VKO) service.

From March to December, UTair (TYU) will take delivery of 7 Boeing 737-800s and 1 737-900. In 2011, (TYU) ordered 40 737NGs, 737-800s and 737-900s modifications. It took delivery of the 1st 737-800 earlier this year. Deliveries should be complete in 2018.

From February to December 2014, UTair (TYU) will receive 8 A321s out of an order of 20. The 1st A321 was delivered in July. According to (TYU), next year its average fleet age will be 8 years.

In August, (CEO) Andrey Martirosov said UTair (TYU) will stop using its Tupolev Tu-154 airplanes before the end of the year. Also, (TYU) wants to transfer its ATRs to its UTair-Express subsidiary, which is concentrating on short-haul regional routes.

UTair Express increased Moscow (VKO) to Voronezh ATR 72-500 service to 3x-daily.

767-224ER (30431, VP-BAQ), ex-(N73152), and A321-231 (5919, VP-BPC), ex-(D-AZAG), deliveries.

January 2014: UTair (TYU) begins 4x-weekly, Krasnodar to Yerevan 737-500 service on February 2nd.

(AJW) Aviation has been selected by Russia’s (JSC) UTair Aviation (TYU) to extend its power-by-the-hour support to an additional 20 Airbus A320s and 3 Boeing 767s.

February 2014: UTair (TYU) has decided to split its airplane and helicopter businesses. The company will consolidate its helicopter business under brand "UTair—Helicopter services." A representative from (TYU)’s supervisory board said the decision will help to make the management process more clear. At the same time, it will be more complicated for the company to subsidize airplane operations with income from the helicopter division, which means the carrier must improve its airplane business structure.

UTair (TYU) linked Krasnodar (KRR) in the west of Russia to Yerevan (EVN) on February 2nd. Flights to the capital of Armenia will be flown 4x-weekly with (TYU)’s 113-seat 737-500s and will join (TYU)’s existing services to Yerevan from Adler/Sochi, Mineralnye Vody and Rostov-on-Don. Competition on the route will come from Aeroflot (ARO) and Air Armenia (ARZ) (both 3x-weekly), with the latter having only started the service itself on February 3rd. It is possible that both UTair (TYU) and Air Armenia (ARZ) are reacting to Yakutia Airlines (SYL)’s withdrawal on the city pair, as it had been flying daily services on the route up until February 2nd.

UTair (TYU) is the 3rd biggest airline in Russia, according to Russia’s Federal Air Transport Agency, Rosaviatsia. In 2013, (TYU) carried 8.18 million passengers with a fleet of 150 airplanes, which include Boeing 737s, Airbus A321s, Bombardier CRJ200s and ATR 72s.

The reconstruction of Yermolino Airport (which is estimated to cost RUB11.3 billion/$325 million) will begin before year end, according to Salavat Kutushev (CEO) of Yermolino’s management company. Earlier estimates for the new infrastructure were $200 million, but Kutushev said this amount only covered the 1st phase of reconstruction.

The airport should be able to handle 1,250 passengers per hour when it begins operations in 2017, but capacity will increase to 2,400 passengers per hour after a few years. The management company said the airport expects to handle 3.5 million passengers in 2017, growing to 7.5 million in 2021.

Yermolino is situated in the Kaluga region, 72 km from Moscow and 91 km from Kaluga. Currently, it is a joint military/civil airport, which now bases the fleet of the Interior Ministry. It does not operate civil aviation flights.

Last year, UTair (TYU) announced it was looking for investors to develop a low-cost airport at Yermolino, as the capacity of all three Moscow airports (Domodedovo, Sheremetyevo and Vnukovo) is predicted to soon reach capacity. (TYU) is not permitted to invest in airport development as it is against Russia’s antitrust regulation, so (TYU) has organized a pool of investors to develop the project.

UTair (TYU) (CEO) Andrey Martirosov said that nearly half of its recently ordered 737s and A321s will operate flights from Yermolino.

The Russian government has approved a bill to allow local airlines to sell non-refundable tickets, which will enable local carriers to be more competitive on the international market. It is expected the document will be considered by the State Duma later this fall.

According to Russian Air Code, currently, (TYU) is obliged to give back the full ticket cost to passengers who cancel their reservations 24 hours before the flight.

Aeroflot (ARO) (CEO) Vitaly Saveliev has said the non-refundable tickets are necessary to launch low-cost carriers (LCCs) in the country. Last year, Aeroflot (ARO) registered a new (LCC) subsidiary called Dobrolet (DBL), which plans to start flights later this year. The new (LCC) is 100% owned by (ARO), which will invest $100 million in (DBL) over the next 2 years.

UTair (TYU) will launch a (LCC) from its base at Yermolino airport in the Kaluga region. Transaero (TRX) has announced a low-cost discount class on existing domestic flights.

737-45S (28477, VQ-BID), seen at Lagos with "UN" titles.

(TYU) takes delivery of 1st A321-211 (5681) equipped with sharklets (see attached - - "TYU-A321 WITH SHARKLETS-2014-03"). A321-211 (5966, VQ-BRT), ex-(D-AZAM) delivery.

March 2014: UTair (TYU), which already flies weekly seasonal services between St Petersburg and Budapest, has launched a weekly flight (Sundays) between Moscow Vnukovo (VKO) and Balaton (SOB), which serves Lake Balaton, Hungary’s most important holiday resort, as well as the thermal spas of Hévíz and Zalakaros. Started on March 23rd, (TYU) will use its 182-seat A321s for the operation. There is no direct competition on this route from Vnukovo, or from Moscow’s other main airports at Sheremetyevo or Domodedovo.

UTair (TYU) added a flight to offer 3x-weekly, Surgut to Moscow Vnukovo, Boeing 737-500/800 service on March 30.

April 2014: UTair (TYU) relaunched 2x-weekly, Tyumen to Munich and weekly, to Dresden Boeing 737-500 service.

UTair (TYU) begins weekly, Rostov-on-Don to Nizhnevartovsk Boeing 737-500 service on June 8. (TYU) introduced its 5th route to Yerevan (EVN), with the addition of daily flights from its Moscow Vnukovo (VKO) base on April 21st. The 1,794 km sector to the capital and largest city of Armenia will be flown utilizing (TYU)’s 113-seat 737-500s and will face competition from Air Armenia (ARR)’s 2x-daily operations and Transaero Airlines (TRX)’s daily flights. UTair (TYU) is already flying to Yerevan from Adler/Sochi (3), Krasnodar (4), Mineralnye Vody (3) and Rostov-on-Don (4).

UTair Airline (TYU) will reconfigure its 8 Boeing 767s into a 255-seat, 2-class layout comprising 10C in business and 245Y in economy. Currently, (TYU)’s 767s can carry 170 passengers in a 2-class configuration with 25C in business class and 145Y in economy.

Aviation Technical Services, which will perform the modification at its Kansas City facility, should complete the work on 4 airplanes before August and the other 4 before December 1.

UTair (TYU) Passenger Airlines President, Oleg Semenov said the 767 reconfiguration is necessary to increase airplane efficiency.

The 767s are currently used on domestic flights and on service from Russia to the Hainan Island in China. (TYU) plans to use more of the type on routes to leisure destinations.

(TYU) announced plans to add 8 767s in May 2012 and took delivery of the 1st 767 in July 2012. (TYU) currently operates 5 767s and it will take delivery of +3 additional airplanes later in the year.

May 2014: UTair (TYU) reported 2013 full-year net income of +RUB326.9 million/+$9.47 million, down -11.6% from a net income of +RUB369.89 million in a year-ago period.

Revenue for the year rose +1.7% to RUB73.6 billion. (TYU) carried 8.18 million passengers in 2013, up +5.3% year-over-year.

The full-year results, published according to Russian Accounting Standards (RAS), were approved by UTair (TYU)'s supervisory board. The board agreed not to pay dividends for shareholders for 2013. It also agreed to include a share capital increase to issue 600 million shares worth RUB23 per share on the incoming board of director’s agenda. The board meeting will take place on June 30.

UTair (TYU) (CEO) Andrey Martirosov said the share capital increase is part of an approved company strategy that also includes the split of aircraft and helicopter businesses. “The restructuring will give us new opportunities to develop each of the company’s main components,” he said.

(TYU) plans to add 22 airplanes this year and will develop Yermolino Airport as its low-cost base in the near future.

UTair (TYU) has added a service from Tyumen (TJM) in Siberia to its existing offering from Dresden (DRS), complementing its 2x-weekly operation from Moscow Vnukovo into the German airport. The weekly service (Sundays) will be flown by (TYU)’s 113-seat 737-500s. The 3,364 km sector, which began on April 27th, is uncontested.

UTair Aviation (TYU) added a 3rd daily, Moscow (VKO) to Mineralyne Vody Boeing 737-800 service on May 15.

Aviation Technical Services (BFG)) will supply Maintenance and Engineering services to UTair Aviation (TYU)’s 8 Boeing 767-200s. (ATS) will modify the 170-seat airplane to carry 255 passengers, while maintaining the airplanes. Work will be completed at the new (BFG) facility in Kansas City, Missouri.

UTair-Express ((IATA) Code: UR, based at Syktyvkar) contact: will shortly take delivery of its 1st SSJ100-95 (95060, RA-89033 - - SEE ATTACHED - - "TYU-SSJ100LR-2014-05"), originally intended for parent, UTair ((IATA) Code: UT, based at Khanty-Mansiysk) (TYU). Sources in the Russian aviation industry said that the Sukhoi Civil Aircraft (SSJ) (Moscow Zhukovsky) twinjet is currently undergoing painting and will come equipped with 103Y seats once ready. UTair subsidiary, UTair Express, has unveiled the livery on its 1st of 6 Sukhoi Superjet 100LR (SSJ100LR) airplanes, ahead of its official delivery date in June.

UTair signed a lease agreement for 6 SSJ100LRs in the long-range version with Sukhoi Civil Aircraft Company (SSJ) and (VEB) Leasing at the (MAKS) Airshow in 2013. The deal is valued at $217.2 million at current list prices. (VEB) Leasing will purchase the airplanes for delivery to UTair (TYU). The airplane has a maximum range of 4,578 km; by comparison, the SSJ100 range is 3,048 km. The required runway length for the (LR) version is 2,052 meters.

UTair (TYU) subsidiary, UTair Express, has unveiled the livery on its 1st of 6 Sukhoi Superjet 100LR (SSJ100LR) airplanes, ahead of its official delivery date in June.

UTair Express operates regional flights from Moscow to Voronezh, Tambov, and Ulyanovsk. It also operates flights from Surgut to Tyumen and Ekaterinburg. It launched its 1st international flight from Moscow to Vilnius on April 1.

According to a UTair Express statement, the airplane was painted by Spektr-Avia in Ulyanovsk. The airplane’s interior is currently being installed. Ordered in 2013 to replace its now retired fleet of Tu-134s, UTair (TYU) has a total of 24 SSJ100 Superjets on order. It intends to use the airplanes on flights to Europe as well as to western Siberia and the European part of Russia.

June 2014: UTair Aviation (TYU) has signed a memorandum of understanding (MOU) with the Kaluga regional government and Interior Ministry to renovate Yermolino Airport for low-cost carrier (LCC) operations. The reconstruction is estimated to cost RUB11.3 billion/$325 million.

UTair Express Airlines has signed a technical support agreement with PowerJet for the (SaM146) engines that power its fleet of Sukhoi Superjet SSJ100LRs.

The regional carrier will take delivery of the 1st of 6 SSJ100LRs later in June; it is scheduled to take delivery of all airplanes before the end of the year.

UTair (TYU) signed a lease agreement for 6 SSJ100LRs with Sukhoi Civil Aircraft Company (SSJ) and (VEB) Leasing at the 2013 (MAKS) Air Show in an order valued at $217.2 million at current list prices. (VEB) Leasing will purchase the airplanes for delivery to (TYU).

PowerJet, founded in July 2004, is a joint venture (JV) between Snecma and (NPO) Saturn. It manages the (SaM146) engine program, which powers the Superjet SSJ100 regional jet.

July 2014: UTair Airline (TYU) is launching a new cost-cutting program, "Impulse," which aims to reduce costs by -RUB5 billion/-$140 million per year. Its 1st measure will be to reduce management staff by -30%.

The program also includes optimizing route networks, decreasing airplane handling time at airports between flights and automating Maintenance Repair & Overhaul (MRO) plans.

(TYU) expects to improve its current sales channels and implement (IATA)’s New Distribution Capability (NDC) program. UTair (TYU) will also move its position in the market toward the budget segment.

UTair (TYU) (CEO) Andrey Martirosov said key economic indicators have forecast a negative trend in passenger demand. He said that despite passenger growth in the 1st half, the average rate (as well as RASKs) have decreased.

Martirosov said airline management studied cost-cutting programs of European and USA carriers (including Lufthansa’s SCORE and Air France-(KLM)´s "Transform" programs) when developing Impulse.

UTair (TYU), Russia’s third biggest airline, carried 8.18 million passengers in 2013, up +5.3% year-over-year. It reported a 2013 full-year net income of +RUB326.9 million/+$9.47 million, down -11.6% from a net income of +RUB369.89 million in a year-ago period.

October 2014: News Item A-1: Russia’s air transport industry needs at least RUB75 billion/$1.85 billion to stabilize in the coming year, according to Moscow-based, State Research & Development Institute for Civil Aeronautics.

According to Alexander Fridlyand, Head of the Institute’s Scientific Center of Economic Monitoring, Analysis & Forecasting, in 2013 the total annual average monthly income of 41 Russian carriers reached RUB54.231 billion. In the 2014 1st half, it was RUB54.825 billion per month. However, operating margins were 0.1% in 2013, and negative (—2%) in the 1st half of 2014.

Russian media previously reported that at least 2 big carriers (Transaero (TRX) and UTair (TYU)) asked for state guarantees to stabilize their financial situation. (TRX) (CEO) Olga Pleshakova refuted the reports, but later "Interfax" reported that (TRX) asked for RUB10 billion in guarantees, referencing sources in the Russian government. Over the summer, UTair (TYU) announced a cost-cutting program, which also included job cuts.

Russia’s carriers and state authorities are now discussing other options (besides state guarantees) to support the local air transport industry. These include canceling Russia’s value-added tax for domestic flights and amending legislation to create the equivalent of USA Chapter 11 bankruptcy protection, which is designed to allow struggling businesses to restructure.

News Item A-2: UTair (TYU), which launched a cost-cutting program this summer, plans to reduce management staff by -30%. In (IATA)’s 2014 - 2015 winter season, (TYU) will reduce staff by nearly -800 people, comprising -500 management staff and nearly -300 pilots (FC) and maintenance technicians (MT). The program also includes optimizing route networks, decreasing airplane handling time at airports between flights, and automating Maintenance Repair & Overhaul (MRO) plans.

News Item A-3: Russian airlines carried 63.7 million passengers from January - August, up +12.3% compared to the year-ago period. According to Russia’s Federal Air Transport Agency, Rosaviatsia, the number of passengers carried between Russia and the (CIS) during the eight-month period dropped -6.9% to 4.7 million year-over-year.

International boardings (excluding Russia - (CIS) destinations) grew +8.8% to 28 million. Domestic boardings were up +19.6% to 31 million.

Flights between Russian regions and Crimea (previously Russia - (CIS)), which is in the center of the Russia - Ukraine political conflict, are calculated differently than in previous years.

Ural Airlines (URL) passenger traffic was up +18.4% to 15.7 million year-over-year. Transaero (TRX) passenger traffic was up +6.4% to 9.03 million; UTair (TYU) was up +10.7% to 6.2 million; Sibir Airlines (working under (S7) brand) (SBR) was up +15.8% to 5.4 million passengers compared to the year-ago period.

Nordwind Airline (NWD)’s passenger traffic was 3.2 million, up +39.9% during the period. Aeroflot (ARO) subsidiary, Orenair (ORB) reported passenger traffic was down -3.7% to 2.2 million passengers, compared to the year-ago period.

News Item A-4: UTair Airlines (TYU) is negotiating with Airbus (EDS) and Boeing (TBC) on new delivery schedules for its orders for 20 A321s and 40 Boeing 737-800/737-900ERs, "Interfax" reported. 8 A321s and 6 737s have been delivered in 2013 and 2014.

November 2014: News Item A-1: UTair Airline (TYU) subsidiary, UTair Finance has entered into technical default on bonds. UTair-Finance cited insufficient funding for its failure to repay RUB1.23 billion/$27 million and RUB1.45 billion of installments on 2 1.5 billion-ruble tranches of 3-year debt, according to "Bloomberg." UTair-Finance said it had to announce technical default as UTair Airline (TYU) delayed payments.

UTair (TYU) has chosen Raiffeisen Bank as a consultant for debt portfolio restructuring. “Restructuring of debt is an important and timely project which is aimed at securing stability and sustainability of (TYU)’s business. Nonpayment at the investor put option by our subsidiary company, UTair Finance, is not a critical issue. UTair (TYU) is not the 1st company which faced such difficulties. This situation is of a temporary nature and should not affect the company’s operations, if timely and reasonable solution between the lenders and the company is found. Raiffeisenbank and UTair (TYU) have started working on the restructuring plan and are going to present it to investors in the coming days,” (TYU) (CEO) Andrey Martirosov said.

Earlier this week, (TYU) announced it will allocate charters as a separate business division to evaluate carefully the charter business.

(TYU) in July launched a new cost-cutting program, "Impulse," which aims to reduce costs. (TYU) is also negotiating postponing new airplane deliveries.

News Item A-2: UTair (TYU) plans to allocate charters as a separate business division. (TYU) has already transferred 9 Boeing 757-200s to its Katekavia subsidiary as a part of the new division.

The new business structure will allow (TYU) to carefully evaluate the charter business. According to UTair (TYU), its main partner, Anex Tour will increase its flights +30% in the 2014 - 2015 winter season, reaching 84 routes.

The leisure network has expanded despite the Russian travel market crisis that led to several bankruptcies this summer. (TYU), which has been working with Anex since 2010, has operated Airbus A321s, Boeing 757s, 737-500/737-800s and 767-300s on flights for the travel company. (TYU) has not yet decided if it will transfer that fleet to Katekavia.

This year, UTair (TYU) launched a new cost-cutting program, "Impulse," which aims to reduce costs. Also, (TYU) is negotiating postponing new airplane deliveries.

(TYU) carried 9.1 million passengers, up +10% year-over-year, during the 1st 10 months of 2014.

News Item A-3: Russia’s Federal Air Transport Agency, Rosaviatsia, said the government has spent RUB3.5 billion/$74 million for regional routes and Kaliningrad routes subsidy programs so far this year.

According to statistics for the 1st 10 months of 2014, 18 Russian airlines carried 460,000 passengers and operated 10,000 flights. The program includes 94 regional routes.

The government planned to spend up to RUB3.58 billion during the year.

Another subsidy program (flights between Kaliningrad and the country’s main territory) ran from May 15 through October 15, 2014. According to the Rosaviatsia, 6 airlines carried 220,000 passengers from Kaliningrad, up +14% year-over-year. The government, which had planned to spend RUB468.4 million on the program, used the entire amount.

December 2014: News Item A-1: Russia’s Avialeasing investment company has filed a bankruptcy motion against UTair Airline (TYU), according to the arbitration court of Khanty-Mansiysk Autonomous Okrug. The Perm-based investment company is seeking to recover RUB3.5 million/$67,000 from UTair (TYU).

The dispute between UTair (TYU) and Avialeasing has been ongoing for several years. According to the court, UTair (TYU) leased a Tupolev Tu-154M in 2007 from Avialeasing and stopped payments from June 2011.

Avialeasing filed a bankruptcy claim against (TYU) in 2012. In a June 2012 statement, UTair (TYU) claimed the lessor had refused to compensate it for repairs and maintenance on the airplane. At the beginning of 2014, the lessor had recovered part of the overdue payments through the court.

A UTair (TYU) representative told "RIA Novosti" news agency the new claim will not have any impact on ongoing operations.

Last week, a Moscow arbitration court seized an estimated $11.8 million in UTair (TYU) assets at the request of the Alfa Bank. A UTair (TYU) representative said that such interim measures are unnecessary and are not in line with current legal practices. (TYU) will appeal the decision. Russian news agency "TASS" has reported that >20 court cases are pending against UTair (TYU) and the total amount of the claims exceeds >RUB700 million.

In November, UTair Finance, a subsidiary of UTair Airline (TYU), entered into technical default on various outstanding bonds. In July, (TYU) launched a new cost-cutting program, "Impulse," which aimed to reduce costs by -RUB5 billion per year. Its 1st measure was to reduce management staff by -30%.

News Item A-2: The Russian government is considering supporting UTair Airline (TYU), Interfax news agency reported, quoting Deputy Prime Minister, Arkady Dvorkovich. Deputy Minister of Transport, Valery Okulov said (TYU)’s prospects in the market depend on UTair (TYU)’s tactic. “We [are considering] (TYU)’s situation [and] the actions that have been taken by (TYU),” Okulov said.

Minister of Transport, Maxim Sokolov previously told Russian news agency "TASS" that Russia’s Federal Air Transport Agency, Rosaviatsia, had been monitoring (TYU)’s situation daily since October, although the head of Rosaviatsia, Alexander Neradko said at the State Duma that authorities are not considering support.

This month, a Moscow arbitration court seized an estimated $11.8 million in UTair (TYU) assets at the request of the Alfa Bank. This week, the Alfa Bank has filed +4 more claims against UTair (TYU) and its subsidiary UTair-Leasing. According to "TASS," the sum of one of the claims exceeds RUB22 million/$405,336.

Earlier this week, Avialeasing filed a bankruptcy motion against UTair (TYU). The Perm-based investment company is seeking to recover RUB3.5 million/$67,000.

At the beginning of December, Samara’s Kurumoch International Airport filed a claim against UTair (TYU) seeking to recover RUB10 million. Novosibirsk Tolmachevo Airport has filed a claim seeking to recover RUB6.3 million.

(TASS) reported that total claims against UTair (TYU) have already exceeded >RUB2 billion.

In November, UTair Finance, a subsidiary of UTair Airline (TYU) , entered into technical default on various outstanding bonds.

In July, (TYU) launched a new cost-cutting program, "Impulse," which aimed to reduce costs by -RUB5 billion per year. Its 1st measure was to reduce management staff by -30%.

News Item A-3: Russia’s UTair (TYU) will ground 40% of its fleet next year, which will allow (TYU) to save up to RUB6.5 billion/$111.404 million in 2015, according to an investor presentation.

(TYU) plans to ground all 12 A321s. It will also stop operating 11 Boeing 757s, as part of these airplanes are transferring to UTair (TYU)’s charter subdivision. In addition, (TYU) will ground 6 Boeing 737-800s, leaving 9 of the type in its fleet. It will stop using 2 767s and the entire fleet of 15 Bombardier CRJs. According to the presentation, (TYU) does not intend to use 6 Sukhoi Superjet 100s (SSJ100s). It will continue to operate 34 Boeing airplanes (most of which are 737-500s) and 15 ATRs.

The presentation, which was prepared by (TYU) with Raiffeisen Bank, expects the fleet grounding will allow (TYU) to save -RUB39 billion in the 2015 - 2020 period, and up to RUB69 billion in the 2015 - 2025 period.

According to the document, as of December 16, (TYU)’s financial and lease debts have reached RUB167.87 billion. 91% of leasing payments are in dollars. Its current arrears have reached RUB13 billion. (TYU) expects it will not be profitable in the 1st quarter of 2015.

This year, UTair (TYU) launched a new cost-cutting program, "Impulse," which aims to reduce costs. Also, (TYU) said it was negotiating postponing new airplane deliveries.

In November, UTair Finance, a subsidiary of UTair Airline (TYU), entered into technical default on various outstanding bonds.

News Item A-4: Ukraine’s State Aviation Administration has banned several Russian and Ukrainian airlines on the Moscow to Dnepropetrovsk route from December 1 for safety reasons. The affected airlines are Russia’s Aeroflot (ARO), Transaero (TRX), UTair (TYU) and UTair-Ukraine (UTN) and Dniproavia (UDN).

Aeroflot (ARO) had planned to re-launch Moscow to Dnepropetrovsk service from December 1. (ARO) was supposed to start daily service to Dnepropetrovsk, as well as 2x-daily service to Kharkiv. However, Aeroflot (ARO) had to change plans for both routes due to the latest ban. (ARO), the Russian flag carrier has also been prohibited from re-launching the Kharkiv route.

Aeroflot (ARO) ceased several Ukrainian routes after Malaysia Airlines (MAS) MH17, a Boeing 777-200ER, was shot down over Ukraine by a surface-to-air missile July 17, while on a scheduled flight from Amsterdam to Kuala Lumpur. All 298 onboard were killed. (ARO) also ceased flights to Donetsk and Odessa.

According to Interfax-Ukraine, Ukrainian authorities do not have information on a possible ban for Aeroflot (ARO)’s Moscow to Odessa flights. Flights to Donetsk are currently impossible, as the airport in the city was totally destroyed.

News Item A-5: Russian airlines carried 86.9 million passengers from January - November, up +10.5% compared to the year-ago period. In November, the airlines carried 6.4 million, a +2.4% increase year-over-year.

According to Russia’s Federal Air Transport Agency, Rosaviatsia, passenger load factor during the 11-month period increased +0.3 points to 80.3% LF, while in November it dropped -1.6 points to 74.3% LF year-over-year.

Despite the decreasing figures, Russian Minister of Transport, Maxim Sokolov said in the State Duma, the market growth on domestic routes will reach +19% in 2014. He added the number of passengers has grown significantly this year in several regional airports such as Krasnodar, Sochi, Mineralnye vody, Anapa, Perm, Chelyabinsk.

The airline market in Russia has faced difficulties due to economical and political conditions. Some airlines have been forced to leave the market. One of Russia’s biggest carriers (UTair (TYU)) has had several claims against it from creditors and partners.

January 2015: News Item A-1: Boeing (TBC) has begun discussions with Russian airlines about potential changes in their fleet development due to the downturn in the country's economy, "Bloomberg" reported, quoting Boeing VP Global Sales, John Wojick. He said scheduled deliveries for 2015 will be fulfilled, as it’s too late for (TBC) to adjust the schedules.

Transaero (TRX) has 2 747-8 deliveries planned for this year. Last year, (TRX) canceled its order for 4 787-8s and moved the 747-8 delivery from 2016 to 2015.

According to Wojick, Russia accounts for <10% of Boeing (TBC)’s total commercial airplane sales.

At the beginning of December, Aeroflot (ARO) (CEO), Vitaly Saveliev told the "TASS" news agency that Russia’s biggest carriers must develop a joint fleet reduction plan, because the “planes fly half-empty.” However, Saveliev did not disclose (ARO)’s plans to postpone deliveries.

Transaero (TRX) and UTair (TYU) responded by saying they will optimize their fleets independently, without coordination with other carriers.

Also in December, UTair (TYU) announced a -40% fleet cut. It plans to ground 6 737-800s, leaving 9 of the type in its fleet. It will stop using 2 767s and the entire fleet of 15 Bombardier CRJs. (TYU) also does not intend to use 6 leased Sukhoi Superjet SSJ100s. (TYU) plans to ground all 12 Airbus A321s. (TYU) will also stop operating 11 757s, as part of these airplane types are transferring to UTair (TYU)’s charter subdivision. (TYU) will continue to operate 34 Boeing airplanes (most of which are 737-500s) and 15 ATRs.

March 2015: News Item A-1: 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 four 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%.

February 2015: New Item A-1: The UTair Group carried 11.2 million passengers in 2014, up +7% year-over-year.

According to a company statement, passenger turnover reached 22.5 billion (RPK)s, up +20.95% year-over-year. Passenger load-factor reached 80.2% LF. The results include UTair (TYU) subsidiaries, UTair Express and UTair’s helicopter operations, which also perform commercial flights to places in Russia where the airplane flights are impossible.

Russia’s Federal Air Transport Agency, Rosaviatsia, previously published full-year results, which reported UTair Airline (TYU) carried 8.6 million passengers, slowing its growth to +4.7%.

UTair (TYU) (CEO), Andrey Martirosov said it is continuing cost-cutting programs to improve efficiency, despite difficulties in the second half of 2014. “We are now negotiating with our partners and we are sure we will restructure our debts in the near future,” Martirosov added.

In November, UTair Airline (TYU) subsidiary, UTair Finance entered into technical default on bonds. (TYU) chose Raiffeisen Bank as a consultant for debt portfolio restructuring.

In December, the government considered supporting the carrier. This year, UTair (TYU) has decreased its fleet significantly, and is discussing the re-marketing of 12 A321s.

UTair Airline (TYU) plans to ask for state guarantees of RUB18 - RUB38.4 billion/$280 - $600 million and is preparing documents to apply for state support, according to (TYU) (CEO), Andrey Martirosov.

The Russian government has approved a bill to reduce the value-added tax (VAT) from 18% to 10% for airlines operating domestic flights. The bill, which will change the country’s tax code, will be sent to the State Duma in the near future. The measure will be effective through January 1, 2017.

Prime Minister, Dmitry Medvedev said the initiative is necessary to improve the financial situations of Russian carriers. Last year, several Russian airlines faced significant difficulties due to economic and currency exchange rates changes.

At the end of 2014, the Russian government pledged to support the struggling Transaero Airlines (TRX), UTair Airlines (TYU), and Ural Airlines (URL) are also seeking government guarantees.

Russia’s international traffic was down -14.5% in January - February, while domestic passenger numbers grew +12.4%. UTair (TYU) carried 691,834 passengers for the two-month period, down -33.6%. Transaero (TRX) carried 1.42 million, down -5% year-over-year.

News Item A-2: UTair (TYU) began weekly, Moscow (VKO) - Pevek Boeing 767-200 service.

News Item A-3: Russia’s international traffic was down -15.3% in January, while the number of domestic passengers grew +18.2%.

According to Russia’s Federal Air Transport Agency, Rosaviatsia, all airlines carried 5.8 million passengers in January, up +0.2% year-over-year. The decrease in international traffic is due to the change of currency exchange rates, which are expected to continue falling during the year.

Russia’s charter carrier, Nordwind (NWD) carried 132,211 passengers, down -48% year-over-year.

UTair (TYU), Russia's 4th biggest airline, carried 395,818 passengers, down -29.3%. (TYU) faced difficulties at the end of the year; its subsidiary UTair Finance entered into technical default on bonds last November.

Transaero (TRX) carried 786,568, down -3.8% year-over-year. S7 Airlines (SBR) is down -2.6% to 538,216 passengers, but Globus Airline (GLP), a 2nd member of the S7 (SBR) Group, carried 178,998 passengers, up +39.7% year-over-year.

Aeroflot (ARO), Russia's biggest airline, carried 1.8 million passengers, up +14.1% over a year ago. A member of the Aeroflot (ARO) Group, Saint Petersburg-based Rossiya (SDM), grew +27.2% to 379,310 passengers.

News Item A-4: UTair Aviation is considering re-marketing its 12 A321s by trying to find new customers for the airplanes that was delivered in 2013 - 2014. The airline is negotiating with Airbus (EDS) to postpone delivery of 8 of 20 airplanes from its original 2012 order.

UTair (TYU) announced the grounding of 12 A321s at the presentation, which was prepared by the carrier with the Raiffeisen Bank. The fleet grounding will allow (TYU) to save up to RUB6.5 billion/$111.404 million in 2015, RUB39 billion in the 2015 - 2020 period; and up to RUB69 billion from 2015 to 2025. The possible A321 customers have not yet been disclosed.

The single-class 220-seat, A321s were ordered mostly for UTair’s (TYU)'s project to develop a low-cost airport at Yermolino in the Kaluga region, which had to be postponed due to financial difficulties.

According to a company spokesperson, most of the A321s were used for leisure charters as well as on domestic and international high-demand routes, such as Moscow to Anapa, Omsk, Chelyabinsk, Dushanbe, Tashkent, and Thessaloniki. However, the leisure charter market has dropped dramatically, due to exchange rate changes. Capacity on flights between Russia and the (CIS) has also decreased as fewer migrants from neighboring countries are searching for jobs in Russia.

In 2014, UTair (TYU)’s growth slowed to +4.7%; it carried 8.6 million passengers.

April 2015: News Item A-1: UTair (TYU) has decreased its fleet from 115 to 71 airplanes in line with its cost-cutting program, "Impulse." (TYU) has grounded 6 Boeing 737-800s, 12 Airbus A321s and 15 Bombardier CRJ 200s. (TYU) has transferred 9 Boeing 757-200s and 2 Boeing 767-300s to its charter division that was created from Katekavia Airline. “The fleet optimization allows (TYU) to reach $100 million annual savings only because [of the reduction] of lease payments,” UTair (TYU) (CEO) Andrey Martirosov said.

Despite the fleet reduction, (TYU) plans to perform >200 flights per day to 165 destinations during the peak of the 2015 summer season, using all 71 airplanes. From Moscow Vnukovo International Airport, (TYU) plans to perform around 160x-flights daily to 50 destinations.

(TYU) made a decision to ground or remarket airplanes because of declining passenger numbers and growth of lease payments due to currency exchange rate increases. (TYU) was supposed to request state aid, but the decision has not been announced yet. (TYU)’s traffic decreased -33.6% in January - February compared to a year-ago, due to (TYU)’s fleet and route cuts.

News Item A-2: Moscow’s Vnukovo International Airport has reported handling 3.2 million passengers in the first quarter, up +23% year-over-year, despite the traffic decrease of its main carriers. The airport cited the growth of Aeroflot Group carriers and Transaero Airline (TRX) for the results.

UTair Airline (TYU), Vnukovo’s main partner, has reported a significant decrease in passenger numbers.

Aeroflot (ARO) subsidiary Pobeda (PBD), which launched flights from Vnukovo in December 2014, reported carrying 189,028 passengers in the first two months of 2015, according to Russia’s Federal Air Transport Agency, Rosaviatsia. Aeroflot (ARO) subsidiaries, Rossiya Airlines (SDM), Donavia (DAU) and OrenAir (ORB) also operate flights to Vnukovo. (SDM) showed a +20% passenger growth at the beginning of the year.

Transaero (TRX) now operates from two Moscow airports (Vnukovo and Domodedovo). (TRX) has transferred or launched several international flights to Vnukovo, such as London, Paris, and Prague.

Moscow Domodedovo handled 5.7 million passengers in the first quarter, down -10% from 6.33 million year-over-year.

News Item A-3: UTair (TYU) has decreased its fleet from 115 to 71 airplanes in line with its cost-cutting program, "Impulse." (TYU) has grounded six Boeing 737-800s, 12 Airbus A321s and 15 Bombardier CRJ 200s. (TYU) has transferred nine Boeing 757-200s and two Boeing 767-300s to its charter division that was created from Katekavia Airline. “The fleet optimization allows (TYU) to reach $100 million annual savings only because [of the reduction] of lease payments,” UTair (TYU) (CEO), Andrey Martirosov said.

Despite the fleet reduction, (TYU) plans to perform more than >200 flights per day to 165 destinations during the peak of the 2015 summer season, using all 71 airplanes. From Moscow Vnukovo International Airport, (TYU) plans to perform around 160 scheduled flights per day to 50 destinations.

(TYU) made a decision to ground or remarket airplanes because of declining passenger numbers and growth of lease payments due to currency exchange rate increases. (TYU) was supposed to request state aid, but the decision has not been announced yet. (TYU)’s traffic decreased -33.6% in January - February compared to a year-ago, due to (TYU)’s fleet and route cuts.

May 2015: UTair (TYU) has cut its staff -19% since the end of 2014 to 4,171 as of March 31, 2015, according to its 1st-quarter report published according to Russian Accounting Standards (RAS). Since the middle of 2014, (TYU) staff has decreased -36.3% from 6,546. (TYU) announced staff reductions in July 2014, when it launched a new cost-cutting program, "Impulse," which aimed to reduce costs by -RUB5 billion/-$140 million per year. Its first measure was to reduce management staff by -30%.

“Since the 4th quarter (4Q) 2014, a significant number of Russian carriers are pursuing a staff reduction policy, which also includes flight crews (FC). That has led to a skilled labor surplus in the market, in particular, due to the previously trained flight crews (FC) for Western-built airplanes. In the medium term, the risk [of the lack of flight crews (FC)] is not significant,” (TYU) said in a report.

The lack of the flight crews (FC) has significantly influenced Russian carriers in the previous years. It had been boosting pilots (FC)’s salaries and airlines’ costs while the airline market in Russia grew, as carriers changed out their Soviet-built airplanes for Western-built equipment.

At the end of 2014, UTair Finance announced technical default at UTair Airline (TYU) for delayed payments as several partners filed for bankruptcy. Recently, it was announced (TYU) agreed with the Russian Alfa Bank on debt restructuring.

In April, UTair (TYU) said it had decreased its fleet from 115 to 71 airplanes. (TYU) grounded six Boeing 737-800s, 12 Airbus A321s and 15 Bombardier CRJ200s. According to (TYU), it has transferred nine Boeing 757-200s and two Boeing 767-300s to its charter division that was created from Katekavia Airline.

According to Russia’s Federal Air Transport Agency, Rosaviatsia, in the 1st quarter (1Q) 2015, UTair (TYU) carried 1.03 million passengers, down -36.1% year-over-year.

August 2015: News Item A-1: Russian airlines carried >125,000 passengers on Kaliningrad to Moscow and Kaliningrad to Saint Petersburg routes within the framework of Kaliningrad subsidy program for the 1st 4 months. According to Russia’s Federal Air Transport Agency, Rosaviatsia, since April 15, 2015, RUB269 million/$4.09 million was spent for subsidies, 64% of its budget of RUB420 million.

The program started will continue through October 15, 2015. Six airlines take part in the subsidy program: Aeroflot (ARO), Transaero (TRX), Ural Airlines (URL), UTair (TYU), S7 Airlines (SBR), and Red Wings Airlines (RWZ).

It is expected that 190,000 passengers will be carried within its framework, down 14% from the year-ago period; 150,000 will be carried on Kaliningrad to Moscow, and 40,000 on Kaliningrad to Saint Petersburg.

Russian authorities launched the Kaliningrad subsidy program in 2011. Kaliningrad is a Russian exclave situated west of the country and does not border the main territory. It is surrounded by Poland and Lithuania.

News Item A-2: Russian airlines have carried 306,000 passengers since spring on routes between the Russian Far East and other parts of the country under a government subsidy program, according to Russian figures just released.

The current subsidy program runs from April 1 through October 31 and applies to destinations in the extreme eastern parts of Russia, between Eastern Siberia and the Pacific Ocean. Eleven Russian airlines (Aeroflot (ARO), Transaero (TRX), Yakutia (SYL), Alrosa, UTair (TYA), VIM Avia (MOV), Ural Airlines (URL), OrenAir (ORB), S7 Airlines (SBR), Ikar, and NordStar (JSC)) are part of the program, and are flying a total of 44 routes between 29 cities in eight federal regions of the country.

According to figures released August 24 by Russia’s Federal Air Transport Agency, Rosaviatsia, Russia has so far this year spent RUB2.072 billion/$30.4 million on subsidizing these operations (61% of the program’s RUB 3.372 billion budget).

Russian authorities first began a Far East subsidy program in 2009.

October 2015: News Item A-1: Russian civil servants must choose Russian carriers when traveling on business, according to a decree signed by President Vladimir Putin on September 30. The mandate is one of several recent moves by the government to support the Russian airline industry as passenger numbers stagnate.

The decree amends business travel rules for civil servants that states government officials must choose Russian airlines or carriers of the Eurasian Economic Union for duty journeys, except when only foreign carriers serve a necessary route or if fares are sold out for a particular date. The document was prepared by Ministry of Labor in May.

From January - July 2015, Russian airlines carried 52.5 million passengers, the same number compared to the year-ago period. In July, passenger numbers grew +2.8%, continuing a trend of May and June.

November 2015: News Item A-1: Russia’s Tyumen parliament has agreed to budget amendments of RUB4.289 billion/$64.8 million for a capital contribution to UTair Airline (TYU) as part of a plan to bail out the struggling carrier.

The Tyumen region’s decision follows last week’s announcement by Russia’s Khanty-Mansi autonomous area that it approved a RUB11.5 billion capital injection to “support the regional airline routes development steadiness.”

According to a Tyumen region statement, the capital contribution is necessary “to provide seamless development of transport service for the oil and gas industry, as well as the transport service for region remote areas in severe climate conditions of Russia’s Far North.”

Last year, UTair (TYU) launched a cost-cutting program, "Impulse," and grounded part of its fleet due to economic turbulence, currency exchange rate increases, and declining passenger numbers.

The Khanty-Mansi area and the Tyumen region are parts of Western Siberia, where airline connections are crucial due to the lack of roads and railroads connections.

News Item A-2: UTair (TYU) began 3x-weekly, Moscow to Vladivostok Boeing 767-200 service and 2x-weekly, Moscow to Petropavlovsk to Kamchatsky service.

December 2015: News Item A-1: UTair Airline (TYU) reported a 2014 net loss of -RUB61.66 billion/-$1.09 billion, deepening its annual net loss by -RUB57.15 billion.

Consolidated financial statements of (TYU) and its subsidiaries for the year ended December 31, 2014, made in accordance with International Financial Reporting Standards (IFRS), were approved and signed by management on October 30, 2015.

Revenue fell -7.6% year-over-year (YOY) to RUB76.6 billion. Operating expenses increased +7.9% (YOY) to RUB87.4 billion.

Last year, UTair (TYU) launched a cost-cutting program, "Impulse," and grounded part of its fleet due to economic turbulence, currency exchange rate increases and declining passenger numbers.

At the end of November, Russia’s Tyumen parliament agreed to budget amendments of RUB4.289 billion/$64.8 million for a capital contribution to UTair (TYU) as part of a plan to bail out the struggling carrier. The Tyumen region’s decision followed announcement by Russia’s Khanty-Mansi autonomous area that it approved a RUB11.5 billion capital injection to “support the regional airline routes development steadiness.”

More than >60% of (TYU)`s shares are owned by non-State pension fund Surgutneftegaz.

News Item A-2: The Russian government is stepping in to support UTair Airline (TYU) with Russian prime minister Dmitry Medvedev signing a resolution guaranteeing RUB9.5 billion/$138.6 million to help secure loans.

(TYU) faced financial difficulties in 2014 due to economic changes and a decrease in passenger demand. It reported a 2014 net loss of -RUB61.66 billion/-$1.09 billion. In February 2015, it was announced (TYU) could apply for state guarantees. (TYU) has since launched a cost-cutting program, reduced its fleet and capacity, and sold some of its subsidiaries.

At the end of November, Russia’s Tyumen parliament agreed to a capital contribution of RUB4.289 billion/$64.8 million to (TYU) as part of a plan to bail out the carrier. The Tyumen region’s decision followed an announcement by Russia’s Khanty-Mansi autonomous area that it approved a RUB11.5 billion capital injection to “support the regional airline routes development steadiness.”

News Item A-3: "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 two 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 fifth place in the ratings, while Rossiya Airline (SDM) stayed at the sixth place with 4.5 million passengers carried, down -6.7% (YOY).

News Item A-4: UTair Airline (TYU) has completed the sale of its Katekavia subsidiary. The carrier was rebranded to Azur Air as a result of the deal, but continues using an air operator’s certificate (AOC) with the Katekavia name.

According to Russia’s Federal Tax Service registry, 100% of Azur Air is owned by One2fly. The register states 80% of One2fly belongs to businessman, Ibragim Nurmanov, while a 20% share is owned by Rustem Kockar.

The carrier operates charter flights for travel company Anex Tour, which is a member of Turkish Anex Tourism Group (ATG). Russian media outlets have reported Azur Air joined (ATG) through the carrier, but representatives do not confirm that. According to Russian legislation, foreign investors cannot own more than >49% of a Russian airline.

UTair (TYU)’s Ukrainian subsidiary (UTN) was also sold and has been rebranded as Azur Air Ukraine (UTN).

Russia’s Azur Air fleet comprises nine Boeing 757-200s and five 767-300s, which may increase next year.

Azur Air continues to operate leisure routes despite the closure of Egypt and Turkey markets. Azur Air has launched flights to Israel and Dubai in the (IATA) 2015/2016 winter season. In addition, it started flights to Cambodia and the Dominican Republic.

According to Russia’s Federal Air Transport Agency, Rosaviatsia, in January - October 2015, Azur Air carried 2.06 million passengers, up +11.7% year-over-year. Azur Air’s load factor reached 94% LF, up from 70.6% LF in the year-ago period.

January 2016: "UTair (TYU) Completes Debt Portfolio Refinancing" by (ATW) Polina Montag-Girmes, January 6, 2016.

UTair Airline (TYU) announced it completed the refinancing of its debt portfolio on December 30, 2015. “The transaction is structured as two syndicated loans with an aggregate value of RUB42.6 billion/$628 million and two bond issues with a total nominal value of about RUB13.3 billion/$181 million maturing in seven and 12 years, respectively, UTair (TYU)’s advisor law firm, Akin Gump said. "The seven-year syndicated loan is guaranteed by the government of the Russian Federation for 50% of the loan amount, alongside a syndicate of 11 banks, with Sberbank the lead arranger and agent and collateral manager.”

UTair (TYU) (CEO), Andrey Martirosov said the refinancing will “ensure (TYU)’s stable operation and sustainable development in the future.”

Natalia Baratiants, Managing Partner of Akin Gump’s Moscow office, called the transaction an “outstanding and unprecedented deal in many respects. The restructuring has been extremely complex and taken more than >2 years to complete. We very much hope that the work that all sides have done will result in the steady, ongoing and successful operation of (TYU) for years to come.”

(TYU) is the Russia’s fourth biggest airline, which carried 5.2 million passengers in the January - November 2015 period, down -35.7% year-over-year.

In 2014, (TYU) launched a cost-cutting program, "Impulse," and grounded part of its fleet due to economic turbulence, currency exchange rate increases, and declining passenger numbers.

March 2016: News Item A-1: "Russia to Spend $44.4 million for Far East Subsidy Program in 2016" by (ATW) Polina Montag-Girmes, March 8, 2016.

Russian authorities have set a budget of RUB3.25 billion/$44.4 million for nine carriers to take part in a government-subsidized program on flights between Russia’s Far East and other parts of the country.

The nine Russian carriers taking part in the program are Aeroflot (ARO), Alrosa, Yakutia (SYL), Ikar, NordStar (JSC), S7 Airlines (SBR), Ural Airlines (URL), (VIM) Avia (MOV), and UTair (TYU).

According to a government statement, the 2016 subsidy program comprises 71 destinations, which include 13 cities in the Far East region. This year’s program will again run from April 1 through October 31. The participating airlines are expected to carry around 480,000 passengers during that timeframe.

In 2015, the program spent RUB3.37 billion for 11 airlines to carry 479,000 passengers. Aeroflot Group member OrenAir (ORB) did not apply for participation this year, while Transaero (TRX) ceased operations in 2015.

Russian authorities launched the Far East subsidy program in 2009.

April 2016: News Item A-1: UTair Airline (TYU) carried 1.2 million passengers in (1Q) 2016, up +17.8% year-over-year. Flight hours increased +27.5% to 37,229 hours, and cargo carried was up +11.6% to 3,563 tonnes year-over-year.

In March, (TYU) carried 459,408 passengers, up +33.7%. Last year, UTair (TYU) had to cut its fleet and personnel to reduce costs after passengers carried fell -25.3% in 2015.

UTair (TYU) President Passenger Airlines, Alexey Budnik said the figures highlight growth as (TYU)’s business model adapted to the current airline market situation. “We have increased flight hours, increased network,” Budnik added.

In 2014, (TYU) launched a cost-cutting program, "Impulse." It attracted regional governments to become airline shareholders and received government guarantees for RUB9.5 billion/$138.6 million to help secure loans. In January 2016, it announced a debt portfolio for refinancing.

News Item A-2: UTair Aviation (TYU) has signed up for Amadeus Airline Fare Families, which enables airlines to brand, differentiate and upsell their travel offers through the indirect channel.

UTair Aviation (TYU) will now be able to clearly showcase the full value of each bundled fare and enjoy greater control over how these are displayed to Amadeus connected travel agents, at every point of sale.

October 2016: UTair Aviation (TYU) will launch a 3x-weekly Saint Petersburg to Munich Boeing 737 service on October 30, its 1st scheduled international flight from St Petersburg in the (IATA) 2016 - 2017 winter season.

Earlier in the (IATA) 2016 summer season, (TYU) announced network development from Pulkovo International Airports, but most new routes were domestic.

According to a Pulkovo statement, in addition to Munich, several new destinations will be added. Belgrade-based Air Serbia (JAT) will continue Belgrade to Saint Petersburg service that was launched in the (IATA) 2016 summer season. Russia’s RusLine Airline will extend its Saint Petersburg to Oslo service for the winter schedule.

UTair Aviation (TYU) is based at Tyumen and Surgut airports in Western Siberia, as well as in Moscow’s Vnukovo Airport, from which it operates up to 160 daily flights.

(TYU) is the 4th biggest airline in Russia and carried 4.3 million passengers from January - August 2016, up +13.7% (YOY). In 2014 - 2015 (TYU)r reported serious financial problems, but was able to restructure debts. (TYU) is developing its network by launching new flights in different regions.

Company management stated in its (1H) 2016 report that it expects to return to sustained profitability over the next years.

November 2016: News Item A-1: Russian aviation authorities have offered the 6 airlines participating in the "Kaliningrad subsidy" program a chance to further develop the Kaliningrad network and sell more subsidized tickets via their websites, using fewer agencies.

In 2016, 6 carriers: Aeroflot (ARO), Sibir (which operates under the (S7) Airlines (SBR) brand), UTair (TYU), Ural Airlines (URL), Red Wings (RWZ) and Nordavia (AEN)) operated routes from Kaliningrad to Moscow and Saint Petersburg within the program framework. Russia launched the Kaliningrad subsidy program in 2011, which runs from May 15 through October 15 each year.

According to Russia’s Federal Air Transport Agency, Rosaviatsia, in 2015, airlines carried 170,000 passengers, down -17% from 205,000 in 2014.

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

News Item A-2: Sharjah-based Volga-Dnepr Gulf will perform base maintenance services on 5 of Russia’s UTair Aviation (TYU)’s Boeing 737s in 2016. The 1st airplane has already been delivered to Sharjah for a "C4" check.

The companies announced the partnership in August 2015, when Volga-Dnepr Gulf performed an "A" check on 1 of UTair (TYU)’s 737-400s.

Volga-Dnepr Gulf, a member of Russia´s Volga-Dnepr Group, was established in 1996. It started as a service provider for Soviet-built aircraft, but in 2014 it gained certification for Airbus A320 and Boeing 737/747 airplanes.

UTair Aviation (TYU) is the 4th biggest carrier in Russia and is based at Moscow Vnukovo airport and in Western Siberia. From January - September, (TYU) carried 5 million passengers, up +15.9% year-over-year. Its fleet comprises Boeing 737-400s, 737-500s, 737-800s, 767s, ATR 72s, and Antonov An-74s and An2s.

January 2017: UTair Aviation (TYU) forecasts it will carry 7 million passengers in 2017, +up 6.7% year-over-year (YOY), with a +3.9% increase in cargo volume to 20,146 tonnes. Load factor is projected to grow +2% points to 72% LF.

(TYU) predicts the Russian airline market will deteriorate in 2017, citing traffic stagnation and fleet increases as main challenges.

(TYU)’s fleet includes 32 Boeing 737-500s, 9 737-800s, 6 737-400s, 3 767-200s and 15 ATR 72s.

According to (TYU), it does not plan to add capacity this year, but expects to increase airplane flight-hour utilization by +8% owing to more effective airplane handling between the flights, more intensive operations of regional airplanes, and new maintenance and repair services.

(TYU), the Moscow Vnukovo-based carrier will increase its network from 150 to 168 domestic and international routes; (TYU) will operate up to 250 daily flights to >70 destinations. 90% of flights will be scheduled, while its charter flights segment will be developed as the result of a partnership with oil and gas companies.

In 2015, UTair (TYU) carried 5.5 million passengers; from January - November 2016, (TYU) carried 6.15 million passengers, up +19% (YOY).

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.

UTair Aviation (TYU) carried 953,668 passengers, up +25.3% (YOY).

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

May 2017: Russia’s airlines have sold >310,000 out of 447,000 subsidized tickets in the Far East subsidy program, with a value of RUB2.15 billion/$37.6 million).

From April 1 to May 1, 10 airlines carried 44,200 passengers within the program. The most in-demand destinations were routes connecting Moscow with Vladivostok, Petropavlovsk-Kamchatsky, Yuzhno-Sakhalinsk, Khabarovsk, Yakutsk and Magadan, according to a May 15 statement by Russia’s Federal Air Transport Agency, Rosaviatsia.

The government has set a budget of RUB2.9 billion for 10 carriers, comprising Aeroflot Airline (ARO), Alrosa, Ikar, (S7) Airlines (SBR), (VIM) Airlines (MOV), NordStar (JSC), Nordwind (NWD), Ural Airlines (URL), UTair Aviation (TYU) and Yakutia (SYL).

The 2017 subsidy program comprises 50 destinations that connect the Far East and other parts of the country, plus 9 destinations in Far East inland. It runs from April 1 - October 31, 2017.

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%.

October 2017: News Item A-1: "More Russian Carriers Take Over (VIM) Airlines’ Far East Routes" by (ATW) Polina Montag-Girmes October 20, 2017.

Russia’s Ikar Airline, which operates under "Pegas Fly" brand, will take over (VIM) Airlines (MOV)’s service to Anadyr in Russia’s Far East as (VIM) ceases scheduled services following financial turbulence, the Chukotka region government said in a statement on October 20. Deputy Governor Leonid Nikolaev said Krasnoyarsk-based Ikar confirmed it will launch Moscow Sheremetyevo to Anadyr Boeing 767 services from March 2018; ticket sales will start in November.

Currently, UTair Aviation (TYU) is the only carrier to provide service on the route. (TYU) will carry passengers with tickets for (VIM) Airlines flights through October 28 if free seats are available.

In addition, the Russian government issued a statement saying an agreement had been reached with Far East Yakutia Airlines (SYL) to increase frequencies on Anadyr to Magadan and Pevek to Moscow services from weekly to 2x-weekly.

Also, the Chukotka government is negotiating with Aeroflot (ARO) subsidiary Aurora Airline (AAZ) and (S7) Airlines (SBR) to develop the route network to neighboring regions, including Anadyr to Petropavlovsk to Kamchatsky and Anadyr to Yakutsk to Novosibirsk services.

Chukotka is in a remote region of Russia, wedged between the Pacific and the Arctic oceans; half of its territory is beyond the Arctic Circle. Because of the region’s location, the government considers transport development to be very important.

News Item A-2: 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.

December 2017: News Item A-1: Russian airlines carried 89.9 million passengers in January to October 2017, up +19.3% year-over-year (YOY).

International traffic grew +34.8% to 36.8 million; domestic traffic was up +10.5% to 53.1 million. Load factor increased +1.9 points (YOY) to 83.8% LF. Cargo and post traffic grew +18.3% (YOY) to 921,059 tonnes.

Individual airlines report the following (1H) traffic figures:

* Aeroflot Airlines (ARO) carried 27.7 million, up +13.9% (YOY).

* St Petersburg-based (ARO) subsidiary Rossiya Airlines (SDM) carried 9.9 million, up +44.4%..

* (S7) Airlines (SBR) carried 8.5 million, up 2.6%. Globus (GLP), which also works under (S7) Airlines brand, carried 3.7 million, up +21.7%.

* Ural Airlines (URL) carried 6.9 million, up +24% (YOY).

* Utair Aviation (TYU) carried 6.1 million, up +9%.

The total market share of Russia’s 5 biggest airlines declined to 65.7% from 67.1% in the 10-month period.

News Item A-2: Utair (TYU) launched daily Moscow Vnukovo to Milan Boeing 737-500 service.

February 2018: (AAR) Aircraft Component Repair-Amsterdam (AFD)/(ALC) has an 8-year UTair (TYU) contract to provide component repair and exchange for its 737 and ATR fleets, plus reliability engineering support.

March 2018: UTair Aviation (TYU) will launch daily Kaluga to Moscow ATR 72 service March 7 and on April 1 will add 3x-weekly ATR 72 flights to Saint Petersburg; 2x-weekly service to Sochi; and weekly flights to Krasnodar and Mineralnye Vody.

April 2018: Russian carriers Utair Aviation (TYU) and RusLine regional signed an interline agreement, which includes RusLine’s domestic routes from Moscow Vnukovo International Airport to Belgorod, Beloyarsky, Vorkuta, Voronezh, Izhevsk, Kirov, Kursk, Lipetsk, Magnitogorsk, Penza, Tambov, Ulyanovsk and Elista.

May 2018: News Item A-1: Utair Aviation reported 2017 annual net income of RUB 2.4 billion/$42.2 million, down -55.4% from a RUB5.5 billion in the year-ago period.

Revenue for the year rose +0.5% to RUB75.8 billion year-over-year (YOY), while operating profit grew +27% (YOY) to RUB7.6 billion.

The results were published in accordance with International Financial Reporting Standards.

Utair Aviation (TYU) unveiled a new corporate identity in October 2017, which features a lower-cased “t” in Utair.

Utair continued to show negative equity in 2017 —RUB8.4 billion (up +38.7% (YOY) from RUB6.03 billion in 2016, which is because of the revaluation of main assets). “The company has used independent ‘valuers’ to revalue the main assets in line with market conditions,” Utair said in its annual report. The main assets of the company decreased -14.2% (YOY) to RUB53.2 billion. The negative equity is balanced by a state guarantee of RUB9.5 billion, which is secured by the pledge of the controlling shareholding of 50%, plus one share. The audit confirmed (TYU) has observed all borrowing covenants and has also realized a one-off charge of RUB2.5 billion for restructuring costs.

(TYU) carried 7.3 million passengers in 2017, up +9.7% (YOY); it expects to increase the number of passengers to 8.2 million in 2018. The Moscow Vnukovo-based airline’s fleet consists of 65 airplanes.

News Item A-2: UTair (TYU), ordered 30 737 MAX airplanes on April 7.

July 2018: Utair Aviation launched weekly Sochi to Kursk ATR 72 service.

August 2018: ACCDT: A 737-8AS (1236-29936, /02 VQ-BJI) performing flight UT-579 on August 31st from Moscow Vnukovo to Sochi (Russia), crashed on landing with 164 passengers and 6 crew on board. The 737 landed on Sochi's runway 06 but overran the end of the runway and dropped into a river bed. The 737's left engine (CFM56) burst into flames. The airplane received substantial damage beyond repair.

The airplane was evacuated, 18 occupants were injured, 8 of whom were taken to a hospital and the others remained unhurt. There were no airplane fatalities. The airport of Sochi reported 1 of their workers died as result of a heart attack whilst rescue and recovery work was ongoing during the accident.

The airplane was initially vectored for an approach to runway 02 by approach, however, runway assignment was changed to runway 06 due to the weather developing. The airplane aborted the 1st approach to Sochi's runway 06 descending through about 2300 feet due to changing winds (now reported from 200 degrees instead of 60 degrees), positioned for another approach to runway 06, and went around from about 400 feet (MSL) again due to changing winds, positioned for the 3rd and last approach to runway 06 (winds reported at 2m/s/4 knots from 060 degrees on tower frequency), which ended in the runway overrun about 30 minutes after the 1st aborted approach and about 11 minutes after the go around.

The Interstate Aviation Committee (MAK) reported the 737-8AS (VQ-BJI) of UTAir (TYU) rolled beyond the end of the runway after landing and received substantial damage due to the roll out and subsequent fire. There were no airplane fatalities. The (MAK) have established an investigation commission.

See video:


Click below for photos:
TYU-737-500 - 2014-12.jpg
TYU-737-524 - 2009-05
TYU-737-524 - 2016-11.jpg
TYU-737-800 - 2015-04.jpg
TYU-737-800 1ST NEW - 2013-10
TYU-757-200 - 2012-06
TYU-767-200 - 2015-10.jpg
TYU-767-300 - 2015-12.jpg
TYU-A321 - 2012-11
TYU-A321 - 2013-07
TYU-A321-211 - 2013-07
TYU-CRJ-200 2011-09
TYU-SSJ100LR - 2014-05

September 2018:

5 737-45S (CFM56-3C1) (3014-28473, /98 BQ-BIG; 3028-28474, /98 VQ-BIF; 3103-28746, /99 VQ-BIE; 3131-28477, /99 VQ-BID; 3132-28478, /99 VQ-BIC), EX-(OK-EGP) ALL 2010-09. 28477; SEEN AT LAGOS WITH "UN" TITLES 2014-02. 56CY, 60Y.

1 737-46M (CFM56-3C1) (2844-28549, /96 VQ-BHZ), EX-(OK-CGT) 2010-07. 56CY, 60Y.

4 737-524 (CFM56-3C1) (2566-27314, /93 VP-BXO, 2009-08; 2571-27315, /93 VP-BXQ, 2009-08; 2573-27316, /94 VP-BXR, 2009-08; 2582-27318, /94 VQ-BXU, 2009-09), BAHZAN LEASING LEASED. WITH WINGLETS. 8C, 106Y.

3 737-524 (CFM56-3C1) (2596-27320, /94 VP-BAE; 2652-27331, /94 VQ-BAD; 2934-28905, /97 VQ-BJP), (BLF) LIMITED LEASED 2008-12. WITH WINGLETS. 8C, 106Y.

7 737-524 (CFM56-3C1) (2597-27321, /94 VQ-BAC, 2008-05 - - SEE PHOTO - - "TYU-737-524-2009-05;" 2607-27322, /94 VP-BXV, 2009-07; 2640-27328, /94 VP-BXY, 2009-10; 2986-28914, /97 VQ-BJV, 2011-08; 28922, VP-BYO 2010-08; 28927, VP-BYP, 2009-07), WITH WINGLETS. LEASED. 8C, 106Y.

1 737-524 (CFM56-3C1) (2913-28900, /97 VQ-BJT), EX-(N14639), (BLF) LEASED 2011-09, 8C, 106Y.

5 737-524 (CFM56-3C1) (2776-27540, /96 VP-BVN; 3019-28917, /98 VP-BYM; 3026-28918, /98 VP-BYK; 3048-28920, /98 VP-BYL; 3066-28925, /98 VP-BPZ, 2008-05), VERULAMIUM LEASED, 8C, 106Y.

1 737-524 (CFM56-3C1) (3069-28926, /98 VP-BVL), EX-(CAL), (TRX) WET-LEASED 2007-12. 8C, 106Y.

6 +27 ORDERS 737-800 (CFM56-7B), 2013-10. WITH WINGLETS. 6 737-800'S GROUNDED 2015-04. 162 PAX.

3 737-8AS (CFM56-7B24) (1140-32778, /02 VQ-BJF; 1167-32779, /02 VQ-BJG; 1178-32780, /02 VQ-BJI), (BLF) LTD LEASED 2011-08. WITH WINGLETS. 12C, 36PY, 111Y.

2 737-8AS (CFM56-7B27) (1236-29936, /02 VQ-BJI - CRASHED 2018-09 - SEE ACCDT REPORT; 1238-29937, /02 VQ-BJI), EX-(VQ-BDU; & VQ-BDV), (SHQ) EUROPEAN AVIATION LTD LEASED 2011-10. WITH WINGLETS. 12C, 36PY, 111Y.

2 737-8GU (CFM56-7B26/3) (3620-37552, /11 VQ-BQQ; 3646-37553, /11 VQ-BQP), (BLF) LEASED 2011-05. WITH WINGLETS. 12C, 36PY, 111Y.

2 737-8GU (CFM56-7B26E) (3710-36386, /11 VQ-BQR; 3729-36387, /11 VQ-BQS), EX-(N1787B), (BLF) LEASED 2011-08. WITH WINGLETS. 12C, 36PY, 111Y.

7 ORDERS (2014-02) 737-900ER (CFM56-7B-26E), 220Y:

30 ORDERS 737 MAX:


2 757-2Q8 (PW2040) (590-26268, /93 VQ-BKF; 592-26271, /93 VQ-VKB), (ILF) LEASED 2011-05. WITH WINGLETS. 214Y.

2 757-2Q8 (PW2040) (857-29377, /99 VQ-BEZ; 1010-29382, /02 VQ-BEY), EX-(OH-LBU; OH-LBX - - SEE PHOTO - - "TYU-757-200 - 2012-06"), (ILF) LEASED 2010-06. WITH WINGLETS. 228Y.

8 +1 ORDER 767-224ER (CF6-80C2B4) (811-30430, /00 VP-BAB; 30431, VP-BAQ, 2013-12; 827-30435, /01 VP-BAG; 839-30437, /01 VP-BAI), EX-(UAL) 2012-06. 25C, 145Y CONVERTING TO 10C, 245Y (4 BY 2014-08 & OTHER 4 BY 2014-12).


12 +9 ORDERS A321-231 (CFM56-5B) (5681 - - SEE ATTACHED - - "TYU-2013-07 - NEW A321" 5919, VP-BPC, 2013-12; 5966, VQ-BRT), EX-(D-AZAG; D-AZAM), (VEB) LEASING LSD 2013-07. WITH SHARKLETS. 12 AIRPLANES GROUNDED 2015-04. 220Y.

6 +9 ORDERS ATR 42-320 (159, NTU; 165, VP-BPJ - SEE PHOTO, 2006-03; 166, N16824, 2006-03; 211; 216; 235; 382, VP-BLE), EX-(CAL), MAGELLAN AIR LEASED.



4 AN-24B (89901708, RA-47166; 79901407, RA-47774; (48Y), 79901502, RA-47778, ALL IN DERELICT CONDITION, GROUNDED).

7 AN-24RV, 44Y.

0 AN-26 (RA-26010 - - SEE INCDT REPORT IN MARCH 2010; 107310007, RA-26012, W/O 2002-11 - - SEE ACCDT REPORT IN NOVEMBER 2002).

0 AN-26B.

2 IL-18D (188011105, RA-74267; 188011201, RA-74268), RAM AIR LEASED 1999-12.

7 IL-76T (D-30KP) (083414432, RA-76510 LEASED TO AVIACION ZITOTRANS 2001-10) (3427796, 2005-01). FREIGHTER.

1 IL-76TD (D-30KP-2) (1013405176, /91 RA-76807), FREIGHTER.


6 TU-134A (D-30-III) (46175, RA-65012; 48450, RA-65025; 3352101, RA-65802; 3342225, RA-65899; ALL GROUNDED) (46155, RA-65609; 61025, RA-65148 2000-11), 76Y.

5 TU-134A (3351806, RA-65960), 2001-08. 49825, RA-65052, 2002-11. 2351507, RA-65738 RTND 2002-11. (60090, RA-65083, 2003-01) (49755, RA-65049, 2003-02) (60332, RA-65108, 2004-10). (62552, RA-65777), KOMIINTERAVIA LEASED 2004-10. 76Y.

6 TU-134A-3 (23135, RA-65847; 28265, RA-65860), 2001-08. (60090, RA-65083, 2002-08). 60343, RA-65110, RTND PRENBURG 2003-11; 48320, /02 RA-65621; 48390, /76 RA-65021, W/O & DESTROYED IN CRASH 2007-03 - - SEE ATTACHED FLIGHT INTERNATIONAL - - "TYU-2007-03 ACCDT;" 48450, /02 RA-65627. (3352102, RA-65612) KOMIINTERAVIA LSD 2003-09. 63245, RA-65977; RETURNED KOMIINTERAVIA 2004-10. 76Y.

0 TU-154B (NK-8-2U) (378, RA-85378; 450, RA-85450; 550, RA-85550; ALL GROUNDED), STOPPED OPERATING ALL 5 BY END OF 2013. 164Y.

0 TU-154B-2 (NK-8-2U) (81A-504, /81 RA-85504, 2003-12; 82A-557, /82 RA-85557, 2002-08; 84A-602, /84 RA-85602, 2003-12). STOPPED OPERATING ALL 3 BY END OF 2013. 164Y.

0 TU-154M (D-30KU-154-II) (97A-1008, RA-85819, 2001-03; 92A-922, RA-85743; (SMR) LSD 2002-01; 84A-701, RA-85606, 2004-12). STOPPED OPERATING ALL 3 BY END OF 2013.166Y.


0 YAK-40 (9521840; 9720354), PARTED OUT 2005-02.

1 YAK-40K (AI-25) (9831758, /78 RA-21504), COMBI.

0 YAK-42D (4520424711397, RA-52354), RETURNED TO (CSK) 2002-11, LEASED TOI (ASU).

6 ATR 42-300 (PW120) (051, /87 VP-BCA; 057, /87 VP-BCG), WESTSIB LEASED. 42Y.

6 ATR 42-300 (PW120) (233, /91 VP-BLI; 0287, /92 VP-BLU), WESTSIB LEASED. 46Y.

2 ATR 72-201 (PW124B) (174, /90 VP-BYW; 251, /91 VP-BYX; 332, /92 VP-BYZ - - SEE ACCDT AND PHOTOS - - "TYU-ACCDT-2012-04-A/B/C"), EX-FINNAIR (FIN) 2008-08, EX-(OH-KRL). EX-(ES-KRE & ES-KRK). WESTSIB LEASED 2008-04. 68Y.

6 ATR 72-500 (-212A) (PW124B) (942, /11 VQ-BLC; 945, /11 VQ-BLD; 950, /11 VQ-BLE; 951, /11 VQ-BLF; 952, /11 VQ-BLG; 953, /11 VQ-BLH; VQ-BLK, 2011-11). 70Y.

1 +19 ORDERS ATR 72-500 (-212A) (PW127M) (994, UR-UTH), LEASED TO (UTN) 2012-04. 70Y.

1 ATR 72-500 (-212A) (PW127M) (1036, UR-UTK), EX-(F-WWEM), LEASED TO (UTN) 2012-07. 70Y.


15 CRJ-100LR (CL-600-2B19) (CF34-3A1) (7121, /96 VQ-BGJ, 2010-06; 7122, /96 VQ-BGK, 2010-08; 7128, /96 VQ-BGL, 2010-06; 7135, /96 VQ-BGO, 2010-05; 7200, /97 VP-BGQ, 2010-08; 7220, /98 VQ-BGR, 2010-05 - - SEE PHOTO - - "TYU-CRJ-200 2011-09;" 7298, /99 VQ-BGU, 2010-03), EX-(C-GFNF; C-GFNJ; C-GEDO), BOUGHT FROM BOMBARDIER. PANORAMA LEASING LEASED 2010. 50CY.

15 CRJ200LR (CL-600-2B19) (CF34-3B1) (7378, /00 VQ-BGV; 7391, /00 VQ-BGW; 7394, /00 VQ-BGX), PANORAMA LEASING LEASED 2010-10. 15 CRJ200'S GROUNDED 2015-04. 50CY.


1 GULFSTREAM G550 (BR710A1-10) (5119, /06 RA-10202), OJSC


1 YAK-42D (4520423914323, RA-42373), 2012-05.


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