DATA SPOTLIGHT: S7 Airlines

27 April, 2020

This year The Blue Swan Daily will feature some of the leading airlines, airports and country markets for air travel. Here, using the extensive profile insights available to CAPA – Centre for Aviation members to deliver a data snapshot, we look at S7 Airlines, a Russian carrier that is the main competition to flag carrier Aeroflot Russian Airlines in local skies.

Right now Russia is the largest aviation market in Europe, thanks mainly to its immense domestic market and the vital role air transport plays in keeping the country connected. The distance from east to west is over 7,300km, approximately a 12 hour flight or, to compare, around six days by road.

S7 Airlines had offered an international network of around 80,000 seats a week, but that has now reduced to almost zero, but its domestic operation is its focus. That has halved in scale since Covid-19 hit Russia, but is still a sizeable operation when compared to many other airlines currently.

While it may still be flying, Vladislav Filev, chairman of parent S7 Group, has warned that the airline is currently not making any money on its flights. He told local Russian media that existing fares are only enough to pay for fuel, airport charges and air navigation, a situation he said cannot continue for long.

He predicts that Russia's aviation market will half to around 60 million passengers per annum by the end of the coronavirus crisis and that USD5 billion in government support would be required to maintain air services at the level seen last year. But, he warns that the nationalisation of carriers in response to the coronavirus crisis would be a step backwards.

"We've been there already. The Soviet Union was the biggest dream about a better life for all, but it did not work. And no one knows how to make it work," he said.

To support its reduced operation, right now, S7 Airlines is utilising 41 of its almost 100 strong fleet, but Mr Filev said that they are “on average, flying daily, instead of five times daily". He expects the airline’s fleet will be significantly smaller in 2021, but not by as much as a half.

ABOUT
Headquartered in Novosibirsk Oblast, JSC S7 Airlines, also known as OAO Siberia Airlines, is one of the largest airlines operating in Russia. The airline is a member of the S7 Group of companies. The carrier handles domestic and international services from its two main hubs - Moscow Domodedovo Airport and Novosibirsk Tolmachevo Airport. In Mar-2008, the carrier established Globus, a subsidiary airline which operates regular flights within Russia, the CIS and Europe under the S7 Airlines brand. S7 joined IATA in 2001, and is part of the Oneworld Alliance.

GLOBAL RANKING (as at 27-Apr-2020)

NETWORK MAP (as at 27-Apr-2020)

DESTINATIONS (as at 27-Apr-2020)

ANNUAL PASSENGER TRAFFIC (2010 – 2020YTD)

CAPACITY SNAPSHOT (versus same week last year)

ANNUAL CAPACITY (2012-2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)

WEEKLY DOMESTIC CAPACITY (2017 – 2020*)

WEEKLY INTERNATIONAL CAPACITY (2017 – 2020*)

CAPACITY SPLIT BETWEEN DOMESTIC AND INTERNATIONAL OPERATIONS (w/c 27-Apr-2020)

LARGEST NETWORK POINT (w/c 27-Apr-2020)

BUSIEST DOMESTIC ROUTES BY CAPACITY (w/c 27-Apr-2020)

LARGEST INTERNATIONAL MARKETS BY COUNTRY (w/c 27-Apr-2020)

BUSIEST INTERNATIONAL ROUTES BY CAPACITY (w/c 27-Apr-2020)

AVERAGE FLIGHT LENGTH (w/c 27-Apr-2020)

FLEET SUMMARY (as at 27-Apr-2020)

AVERAGE FLEET AGE (as at 27-Apr-2020)

AIRCRAFT OWNERSHIP SPLIT (as at 27-Apr-2020)

MORE INSIGHT...

Russia now Europe's #1 airline market, thanks to domestic size

COVID-19 and European airlines: zero capacity becomes a reality

Ryanair to Georgia after Russia bans flights; confronts Wizz Air

Russian airline consolidation has reached a plateau