Thursday, September 29, 2016

Capitalisation “Aeroflot” higher than Air France/KLM – Economy News

Print Capitalization of “Aeroflot” has reached the record level of 116 billion rubles, which translated into the U.S. dollar exceeds the rate of the group Air France – KLM, said the head of “Aeroflot” Vitaly Saveliev. “We for the first time, despite the difficult market, has reached a historic high. Today the capitalization of “Aeroflot” – 116 billion. I Want to say that this capitalization in dollar terms more than the capitalisation of the group Air France – KLM,” said Savelyev at a meeting with President Vladimir Putin, reports TASS.

Aviakerosin may soon face jail and huge fines. To toughen the penalties for bullies on Board suggested Thursday at a meeting with the President the head of “Aeroflot” Vitaly Saveliev.

“We bring a net profit of more than RUB 20 billion, We believe that if the government decides on the payment of dividends and we go all corporate procedures, we may pay dividends of 50% of net profit. If we believe that we will bring at least 20 billion rubles (by the end of 2016 – ed.) and more then 50% – is 10 billion rubles”, – explained the Saveliev and added that 51% of this amount falls to the share of the state.

meanwhile, the airline “Victory” is a very successful project of “Aeroflot”. “With regard to “Victory”: in fact, a very successful low-budget project. “Victory” last year has transported 3,1 million passengers.

this year we will transport over 4 million passengers. Seat occupancy at 86%. And “Victory”, an early release of the profit: this year’s “Victory” will bring more than 2 billion rubles of net profit, which for us is essential. And this shows the effectiveness”, – said Saveliev.

On all fronts, according to analysts, where stands “Victory”, prices fall about 20% from competitors. In the last year from 3 million passengers, which carried a “Victory”, 10% of passengers paid for the ticket just 999 RUB This trend continues, i.e. “Victory” is not simply declares, it still sells at very low prices.

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“If we “Win” comparable with American and European low-cost airlines, it also does not get income, but has a significant reduction in expenditure. Thus “Victory” is working effectively, hence the opportunity to bring more than 2 billion rubles of net profit ahead of schedule.

We want our “Victory” became the third airline in Russia. We will pursue this aim in the nearest future”, – said Saveliev.

“the goal for the formation of the aviation group of “Aeroflot”, which appeared first in Russia, was completed. The group was formed from four airlines: “Aeroflot” remained in the premium segment.

the Company “Russia” where has been integrated two aviation companies, is a niche for the middle class. A very successful project which we have begun with your consent and your support is “Victory”. And “Aurora”, a regional carrier in the far East, which provides regional transportation. The group created a very good feeling, functioning,” – said Saveliev.

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In 2016, “Aeroflot” will increase domestic flights by 10%. “As for the Russian air transportation market, the company “Aeroflot” will carry about 28.9 million passengers. This 10% growth. As a group we move 43.4 million passengers. And the trend, despite the market, constantly stable high. We consistently are in the growth stage,” – said the head of “Aeroflot”.

the Share of Aeroflot in the Russian market is 43.3%. And it is based on foreign carriers, which transport the Russians on domestic routes. Excluding foreign companies, the share of “Aeroflot” more than 50%.

index of dollar-mile” Aeroflot” in the first half ranked first in the world in the cheapness of the tickets M-class, said Savelyev. “You about the cheapness tell the passengers, they are hardly going to agree,” said the President, pointing out the difference in the incomes of Russians and citizens of other States.

“We are now in the stage of development of the contract for an additional 20 cars Sukhoi Superjet and are working on a contract for machine MC-21, also 50 cars,” said Savelyev.

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“Aeroflot” intends to increase the share of domestic cars in its fleet to 40%.

“We want our “Victory” became the third airline in Russia, we’re striving to do this in the nearest future”, – noted the Saveliev. Aeroflot would like to have the status of not only the best airline in Eastern Europe, but also throughout Europe. “I think we have every reason to fight for this indicator,” – said the head of “Aeroflot”.

“Aeroflot” proposes to continue the programme flat rates for air travel. “We propose to continue this program because it was designed for two years with your support. But we see that there is demand, and we believe that can do it. Aeroflot carried on a flat tariff over the past year, 1.7 million passengers versus 1.1 million a year earlier. In the far East we have also moved about 700 thousand passengers, an increase of 43%. We fly to Kaliningrad to Simferopol”, – said Saveliev.

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