Aeroflot Group updates development strategy to 2030
30 January 2023, Moscow. — Aeroflot Group presented an updated strategy up to 2030. In December 2022, the document was approved by Aeroflot’s Board of Directors. Taking into account the goals of development of Aeroflot Group as the largest Russian carrier the updated strategy is based on the Comprehensive programme for the development of Russia’s air transport industry through 2030, which was approved by the Government of the Russian Federation earlier in 2022.
Sergey Aleksandrovsky, CEO of PJSC Aeroflot, said: «Aeroflot Group strategy has been updated to reflect the new realities for the Russian civil aviation. In the short term, our efforts will be focused on ensuring technological independence from foreign products across all of the Group’s business processes. The first and significant step has been taken in terms of digital transformation. We have successfully switched to Leonardo, the Russian-made automated booking system. Besides, we aim to provide connectivity of the country and increase the air travel mobility of the population through expanding the regional route network. Maximizing the opportunities for travellers to fly direct within the country is a task of national importance, which we will continue to implement in accordance with the parameters of the new Strategy."
According to the key provisions of the document, Aeroflot Group will keep its focus on the goals that will ensure the company's leadership in the Russian airline market and technological sovereignty.
Aeroflot Group’s passenger traffic is set to grow up to 65 million passengers, which will ensure a market share (including foreign airlines) of at least 50%. The Group will continue to operate in a multibrand format to maximize presence across all major market niches: a high-level product (Aeroflot), a balanced-level product (Rossiya Airlines) and a basic-level product (Pobeda). The cooperation of the three carriers will allow Aeroflot Group to meet the demand of various consumer segments within a single route network.
To further enhance the transport accessibility of the country's regions, the creation of a unified route network underpinned by a system of regional bases is stipulated as one of the Group’s key goals. In addition to Krasnoyarsk, Aeroflot's largest hub outside Moscow, the company intends to open three new regional bases in three clusters of the country: the south of the Russian Federation, the Far East, the Volga Region and the Urals. Thus, all the four regional bases will ensure Aeroflot Group’s strong presence across the country.
The Strategy puts a special emphasis on import independence. By 2030, the share of domestic aircraft in the fleet will increase to 70% following 339 new domestic aircraft put in operation , including the MS-21, SSJ-NEW and Tu-214. According to the Strategy, more than 500 aircraft will be used to ensure air transportation programme operation by 2030. A considerable fleet expansion will require up to 3,500 more pilots and 8 new flight simulators.
The development of intra-Group competencies in continuing airworthiness is aimed to ensure import independence in the operation of foreign and domestic equipment. Repair and maintenance on the Group's aircraft will be performed by a single provider, Aeroflot Technics, part of Aeroflot Group. By 2030, thanks to the development of a number of competencies, including in the development of technical documentation and components the provider is set to become the largest aircraft technical support and maintenance center in the Russian Federation, CIS and Eastern Europe.
Aeroflot Group’s technological sovereignty will be achieved by 2030 due to the full transition to domestically-made software only.
The Strategy provides for a further increase of a share of ancillary revenues following the creation of a new e-commerce based product line, which will allow passengers to plan travel in a comprehensive and more convenient way.