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Company News

07 April 2014

CAPA Publishes Aeroflot SWOT Analysis

April 7, 2014, Moscow. — A SWOT analysis based on Aeroflot activities in 2013 was published by Centre for Aviation (CAPA). «Russia’s national champion is well positioned to confront new challenges», stated the esteemed aviation research agency.

According to the results of its comprehensive analysis, Aeroflot’s advantages are:

• The biggest share of the domestic market (including foreign airlines operating in Russia) — 30% of total passenger traffic;

• Dominating key Moscow hub — Sheremetyevo airport;

• Long-term profitability of the Russian flag carrier, while other major European airlines have all made losses more than once;

• Better cost efficiency compared to other aviation groups as, for example, Air France-KLM or IAG;

• One of the most modern fleets in Europe with an average age of 4.5 years;

• Aeroflot Group’s multi-brand strategy covering all market segments;

• Ambitious but realistic growth plans for the Group: passenger traffic is to reach 70 million passengers in 2025 (compared to 31.4 million passengers in 2013), which is higher than average market growth.

CAPA analysts underlined such favorable opportunities for Aeroflot as:

• Strong growth potential of the Russian market;

• Deeper integration Aeroflot Group companies;

• Launch of its own LLC Dobrolet that would mean a new business within the Group.

SWOT-analysis named some potential risks that might influence air transport development in some regions, including factors related to the political crisis in Ukraine. Nevertheless, Aeroflot’s strategy of dynamic development provides the potential for neutralizing these risks.

In general, according to the study, «opportunity knocks for Moscow favourite».

Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2013, its 90th anniversary year, Aeroflot carried 20.9 million passengers (31.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve more than 1,064 destinations in 178 countries worldwide. Aeroflot operates one of the most modern and youngest fleets in Europe, numbering 152 Airbus, Boeing and Sukhoi airliners with an average age of 5.6 years. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the fifth time in 2013, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008 compliant. In 2013, Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the second time. Find more at www.aeroflot.com.