• My annual Report (0)
  • Add to My Report
  • Print version
  • Download center
  • Interactive analysis
  • Feedback
  • Share This page

Route Network

Route Network Development Strategy

Aeroflot Group implements a strategy of balanced route network development based on a multibrand model ensuring maximum coverage of the air transportation market and the Group’s presence in various price segments across different regions. The route network management strategy relies on increasing frequency of flights to most popular destinations and improving flight connections by adopting a wave system structure in flight schedules at its main hub, Moscow Sheremetyevo airport, which enhances customer experience. Flights to new destinations are launched based on the analysis of demand, competition, and potential efficiency of new routes, both in terms of direct passenger traffic and contribution to the route network synergy. Aeroflot Group pays particular attention to making socially important destinations accessible for its customers.

Aeroflot Group Route Network Development1

In 2016, Aeroflot Group’s network comprised 326 scheduled routes to 51 countries, including 47 unique routes operated by the low-cost carrier Pobeda. Excluding the low-cost segment, the Group’s airlines operated scheduled flights on 279 routes.

Regional developments imply a growth in the number of both scheduled (up 13.8% to 140) and charter (up 7.1% to 60) domestic routes. The number of international scheduled routes declined during the year by 13.1% to 139, with charter routes down by 10.8% to 116. The decline was due to the optimisation of route networks carried out by the subsidiaries in 2015, and the launch of Rossiya airline, a new integrated carrier.

In 2016, the total number of routes decreased by 6.5% to 377, primarily at the expense of charter segment driven by lower demand for tourist flights.

1 Due to the separate status of the low-cost segment, the data on Aeroflot Group’s route network presented in this section of the Annual Report includes the routes of Aeroflot airline and subsidiaries excluding Pobeda, unless otherwise stated.

Number of Aeroflot Group’s routes

  2015 2016Change, %
Sch. Chart. Total Sch. Chart. Total Sch. Chart.Total
International 160 130 260 139 116 214 (13.1) (10.8) (17.7)
Domestic 123 56 143 140 60 163 13.8 7.1 14.0
Medium-haul 249 170 356 253 161 341 1.6 (5.3) (4.2)
Long-haul 34 16 47 26 15 36 (23.5) (6.3) (23.4)
TOTAL 283 186 403 279 176 377 (1.4) (5.4) (6.5)
1 Due to the separate status of the low-cost segment, the data on Aeroflot Group’s route network presented in this section of the Annual Report includes the routes of Aeroflot airline and subsidiaries excluding Pobeda, unless otherwise stated.

During 2016, Aeroflot Group’s airlines launched scheduled flights to 28 new destinations, including 19 domestic and 9 international

AirlineDestination Destination
AeroflotMoscow Alicante
 Moscow Lyon
 Moscow Syktyvkar
 Moscow Valencia
 Kazan Frankfurt
RossiyaAnapa Krasnoyarsk
 Sochi Nizhny Novgorod
 Sochi Krasnoyarsk
 Sochi Orenburg
 Sochi Tyumen
 Nizhny Novgorod Simferopol
 St Petersburg Heraklion
 St Petersburg Rimini
 Moscow Goa
 Moscow Paphos
 Moscow Rimini
 Omsk Simferopol
 Yekaterinburg Anapa
AuroraAmgu Kavalerovo
 Blagoveshchensk Neryungri
 Dalnegorsk Kavalerovo
 Khabarovsk Shakhtersk
 Khabarovsk Neryungri
 Khabarovsk Nogliki
 Yuzhno-Sakhalinsk Blagoveshchensk
 Yuzhno-Sakhalinsk Petropavlovsk-Kamchatsky
 Vladivostok Blagoveshchensk
 Vladivostok Preobrazheniye
 Own flights of subsidiary airlines

At the same time, in 2016, nine scheduled routes were discontinued as part of the network restructuring effort prompted by the launch of Rossiya airline.

Destination Destination
Krasnodar Sochi
Krasnodar Yerevan
Mineralnye Vody Yerevan
Mineralnye Vody Tashkent
Rostov-on-Don Yerevan
Rostov-on-Don Istanbul
Rostov-on-Don Tashkent
St Petersburg Urgench
Krasnodar Yekaterinburg

In 2016, the number of Aeroflot Group’s scheduled flights grew 1.8% y-o-y. Asia and North America reported the highest growth (+20.9% and +8.5%, respectively), driven by higher demand on these routes and weaker competition. The number of scheduled flights to Europe grew by 5.7% in response to additional market opportunities in the region. The number of flights to the Middle East in 2016 was almost flat year-on-year, due to the falling demand for certain leisure destinations. The decline in number of flights to CIS countries was mainly due to the network optimisation efforts by subsidiaries, and discontinued services to Kiev and Odessa in Ukraine since late 2015.

Aeroflot Group’s scheduled routes (2016 vs 2015)

Aeroflot Group’s scheduled routes
(2016 vs 2015)<br />

Aeroflot Group’s scheduled flights by region (2016 vs 2015)

Aeroflot Group’s scheduled flights by region
(2016 vs 2015)

Average weekly frequency of Aeroflot Group’s flights

Average weekly frequency of Aeroflot Group’s flights

In 2016, the number of Aeroflot Group’s scheduled flights grew 1.8% y-o-y. Asia and North America reported the highest growth (+20.9% and +8.5%, respectively), driven by higher demand on these routes and weaker competition. The number of scheduled flights to Europe grew by 5.7% in response to additional market opportunities in the region. The number of flights to the Middle East in 2016 was almost flat year-on-year, due to the falling demand for certain leisure destinations. The decline in number of flights to CIS countries was mainly due to the network optimisation efforts by subsidiaries, and discontinued services to Kiev and Odessa in Ukraine since late 2015.

In 2016, Aeroflot Group continued increasing the frequency of service to the most popular and lucrative destinations. The average weekly frequency of scheduled flights grew by 4.8% y-o-y (from 11.8 to 12.4). This figure has grown 10.1% (from 9.1 to 10.0) for international scheduled destinations and 11.0% (from 13.5 to 15.0) for domestic flights.

In planning its flight schedule, Aeroflot Group focuses on:

  • improving the accessibility of Russia’s regions;
  • improving customer experience of direct (non-stop) flights;
  • optimising targeted connections on intercontinental (Asia – Europe, North America – Middle East), and interregional routes (Far East / Urals – Centre / South);
  • maintaining and further developing the hub structure at Sheremetyevo airport;
  • growing the market share on existing routes (large markets) and launching new destinations in prospective markets with high transfer traffic potential.

Aeroflot Airline’s Route Network Development

In 2016, Aeroflot airline’s route network covered 133 scheduled routes to 50 countries. The number of both domestic and international scheduled routes stayed flat year-on-year. The total number of routes serviced by Aeroflot airline (including charter) grew 5.0% y-o-y to 147.

Aeroflot continued expanding its network by launching five new scheduled routes, including four international (from Moscow to Alicante, Valencia, and Lyon, and from Kazan to Frankfurt) and one domestic (from Moscow to Syktyvkar).

In 2016, the total number of Aeroflot airline’s scheduled flights grew by 6.0% y-o-y due to the increase in capacity on the most popular routes and the changes in the route network mentioned above. This growth was mainly driven by an increase in flights on domestic and European routes by 6.6% and 6.9%, respectively. It was also supported by a 16.3% increase in flights to Asian countries. The result saw the connectivity ratio for Aeroflot airline’s own flights improve from 16.0 in 2015 to 19.1 in 2016.

The average weekly frequency of scheduled flights grew by 0.4%, from 16.1 to 16.2 flights per route per week.

Number of Aeroflot airline’s routes

  2015 2016Change, %
Sch. Chart. Total Sch. Chart. Total Sch. Chart.Total
International 87 12 92 87 20 99 - 66.7 7.6
Domestic 46 9 48 46 13 48 - 44.4 -
Medium-haul 107 21 114 108 30 119 0.9 42.9 4.4
Long-haul 26 - 26 25 3 28 (3.8) - 7.7
Total 133 21 140 133 33 147 - 57.1 5.0

Aeroflot airline’s scheduled flights by region (2016 vs 2015)

Aeroflot airline’s scheduled flights by
region (2016 vs 2015)

Average weekly frequency of Aeroflot airline’s flights

Average weekly frequency of Aeroflot airline’s flights

Subsidiary Airlines’ Route Network Development

Rossiya airline

In response to recent market shifts and pursuant to the relevant resolution by its Board of Directors, PJSC Aeroflot has established Rossiya airline, an integrated regional carrier, to consolidate the operations of JSC Rossiya Airline, JSC Orenair, and JSC Donavia. The new carrier started its operations on 28 March 2016.

The route network of the integrated carrier has been overhauled to improve operational and financial efficiency and to account for the addition of the long-haul aircraft previously operated by Transaero.

In 2016, Rossiya airline operated scheduled services on 112 routes (68 domestic and 44 international), including 85 routes under commercial management of PJSC Aeroflot.

Plans for the carrier’s network expansion provide for further development of the regional Northwestern transport hub at Pulkovo airport (Saint Petersburg), and for services from Moscow’s Vnukovo airport. Flights from Vnukovo cover destinations in Russia’s Far East and targeted domestic connection airports, as well as Nice and Paris (Orly) in France.

Aurora airline

Aurora is focused on securing transport accessibility and accommodating the demand for flights in the Russian Far East and to major cities in Siberia: Irkutsk, Krasnoyarsk, Novosibirsk, and Yakutsk. Aurora also operates international services from Khabarovsk, Vladivostok, and Yuzhno-Sakhalinsk to the Republic of Korea, China, and Japan.

In 2016, Aurora airline operated scheduled services on 51 routes in 4 countries (38 domestic and 13 international routes).

In the reporting year, the airline strengthened its position in the region’s international air transportation market. Aurora remains the only carrier operating flights from Vladivostok and Yuzhno-Sakhalinsk to Harbin, China, from Vladivostok to Busan in the Republic of Korea and Dalian in China, and from Khabarovsk to Krasnoyarsk.

To attract transit passengers and offer them a smooth travel experience, the airline increased flight frequency on the routes connecting the major hubs in Khabarovsk and Vladivostok, and also adjusted certain flight schedules. The frequencies of services from Khabarovsk and Vladivostok to Seoul, the Republic of Korea, and Petropavlovsk-Kamchatsky, and from Vladivostok to Beijing, China, have been increased in response to surging demand.

In 2016, Aurora also enhanced its offering across a number of destinations through a codeshare agreement with S7 Airlines, which came into force during the reporting year. The agreement covers flights from Vladivostok to Hong Kong, Beijing, Tokyo, and Yuzhno-Sakhalinsk; and from Khabarovsk to Beijing. Dash-8 Q400 aircraft were partially involved to support the turnover of Airbus A319 aircraft and to improve passenger load factors on short-haul flights.

Aeroflot Group continues to integrate Aurora’s own domestic local routes into the Group’s network to improve travel experience and accessibility for passengers flying to/from destinations in the Russian Far East from/to other domestic and international destinations.

Local routes network of Aurora airline's 2016

Local routes network of Aurora airline's 2016

Pobeda airline

In 2016, Pobeda airline operated flights on 72 routes, including seasonal routes from Russian regions to the Black Sea resorts in Sochi and Anapa. During the year, Pobeda operated 47 unique routes which have not been serviced by any other airline within the Group.

In the reporting period, Pobeda was rapidly expanding its network, launching not only direct flights between Moscow and other Russian regions, but also interregional routes that directly connect large regional centres, specifically Yekaterinburg with Krasnoyarsk and Novosibirsk, Saint Petersburg with Yekaterinburg, Makhachkala, and Krasnodar, etc. Its schedule not only aims to boost direct passenger traffic, e.g. between Novosibirsk and Yekaterinburg, Yekaterinburg and Saint Petersburg, but also intends to offer an attractive alternative to transit passengers who need to travel between Novosibirsk and Saint Petersburg.

The company continued to add new international destinations. In addition to the flights to Milan (Bergamo) and Bratislava launched in 2015, new destinations were added in 2016 including Cologne, Memmingen, Girona, Larnaca, Paphos, Tivat, Pisa, and Gyumri. A number of international flights include an option of a group transfer to city centre, including Milan, Florence, Zurich, Barcelona, Yerevan, and others).

Pobeda has also launched services on Rostov – Baku, Rostov – Tbilisi, and Samara – Almaty routes.

Pobeda airline's route network in 2016

Pobeda airline's route network in 2016

Transit Passenger Traffic

The extensive route network of Aeroflot Group not only provides passengers with the benefits of flying point-to-point, but also offers travelling options with connections at Moscow’s Sheremetyevo airport, its main hub, and in base airports of regional airlines. From the business perspective, transit passenger traffic falls into three groups: domestic transit, transit between Russia and other countries, and international transit. The bulk of the Group’s transit passenger traffic is handled by Aeroflot airline, which takes advantage of Russia’s beneficial geographical position to pick up transit passenger traffic between Europe and Asia and from other transit markets.

In 2016, total transit traffic on Aeroflot airline’s flights rose 5.5% y-o-y to c. 12.0 million passengers. Passengers in transit accounted for 42.1% of Aeroflot airline’s total passenger traffic in 2016 (44.2% in 2015). The share of transit passenger traffic declined as a result of higher demand for point-to-point flights. In 2016, with an increase in the overall passenger traffic and a higher passenger load factor, there was a shift in passenger traffic towards direct flights, indicating improved network efficiency across Aeroflot Group.

The increase in the transit passenger traffic was mainly driven by the growth in transit passenger traffic between Russia and other countries, reaching 16.9% of Aeroflot airline’s total passenger traffic. The share of international transit traffic was 13.1%. Although the share of this segment declined year-on-year, its passenger traffic grew 3.5% in absolute terms. International transit has the highest impact, since it provides the company with an opportunity to capture more value from international markets and global passenger flows.

Aeroflot continued its focus on boosting Moscow’s profile as an attractive transit hub by increasing the frequencies of services, maintaining a wave system structure in flight schedule and improving connectivity. Tactical moves made by Aeroflot in 2016 to enhance its value proposition for transit passengers include changes in the flight schedule from Moscow to Cuba (morning departure from Sheremetyevo and morning arrival, which has fundamentally changed the connection pattern by providing convenient connections to all flights of the European morning arrival wave, as well as Delhi and destinations in China). Additionally, in 2016 Aeroflot added a second daily flight from Moscow to Delhi and back to ensure two-way connections for all popular routes that might include this flight (Europe and Americas). During the year, Aeroflot introduced 14 additional weekly flights to London (two additional daily flights) to improve the route’s connectivity with the Asian market. The company continues expanding its network in Kazakhstan, a market with a strong potential for transfer traffic. Aeroflot is also consistent in its efforts to increase the frequencies and capacity on high-margin routes with a high share of transfer traffic (Spain, Israel, France, Italy, Vietnam, India, and Thailand).

Aeroflot airline’s key international transit routes in 2016 included New York – Tel Aviv, Yerevan – Los Angeles, Bangkok – Tel Aviv, Hanoi – Prague, Shanghai – Tel Aviv, Berlin – Hanoi, Delhi – Tel Aviv, Barcelona – Seoul, Barcelona – Tokyo, and Madrid – Seoul.

Aeroflot airline’s key international transit routes in 2016у

Aeroflot airline’s key international transit routes in 2016у

Share of transit passengers in Aeroflot airline’s total passenger traffic
%

Obtaining approvals and operating permits to increase the frequencies of services and launch new flights

In 2016, the Federal Air Transport Agency issued the following operating permits to companies of Aeroflot Group that are under commercial management of PJSC Aeroflot.

Aeroflot airline
  • Four new permits to operate international scheduled passenger services from Moscow to Lisbon, Kyzylorda, and Kostanay, and from Kazan to Frankfurt am Main;
  • Ten additional permits to increase the frequencies of international scheduled passenger services from Moscow to Aktobe, Bologna, Vienna, Yerevan, Chisinau, Lyon, Malaga, Paris, and Beijing;
  • Three new permits to operate international non-scheduled (charter) passenger services from Moscow to Grenoble, Chambery and Varadero.
Rossiya airline
  • One new permit to operate international scheduled passenger service from Moscow to Yerevan;
  • Three additional permits to increase the frequencies of international scheduled passenger services from Moscow to Tenerife and from Saint Petersburg to Baku and Urgench;
  • One new permit to operate international non-scheduled (charter) passenger service from Moscow to Punta Cana.
Aurora airline
  • Four new permits to operate international scheduled passenger services from Vladivostok to Jiamusi and Yanji; and from Khabarovsk to Sanya and Jiamusi;
  • One additional permit to increase the frequency of international scheduled passenger service from Yuzhno-Sakhalinsk to Sapporo.

There have also been certain changes within the Group. With the Group’s regional airlines now integrated into Rossiya airline, all operating permits held by Donavia (for 16 routes) and Orenair (for 41 routes) were transferred to the consolidated carrier, with effect from 27 March 2016. Aeroflot airline’s permit to operate a scheduled service between Moscow and Karlovy Vary was transferred to Pobeda airline. Rossiya airline’s permit to operate scheduled flights between Moscow and Rimini (one weekly frequency) was transferred to Pobeda airline as part of the effort to reallocate the flight frequencies between the services operated between Moscow and Rimini and between Moscow and Bergamo.

Permits were renewed for Aeroflot airline (for 20 routes) and Rossiya airline (for 17 routes) to operate services on Transaero’s routes until the end of the IATA Winter 16/17 Season, with an extension option (a total of 36 routes). In order to streamline the use of operating permits held by Aeroflot airline and Rossiya airline, a number of permits inherited from Transaero have been waived.

With support from the Russian Ministry of Transport, a number of scheduled designations were secured from the Russian Ministry of Foreign Affairs on the following routes:

  • Aeroflot: Kazan – Frankfurt am Main;
  • Rossiya: Krasnodar – Yerevan, Mineralnye Vody – Yerevan, Mineralnye Vody – Tashkent, Moscow – Varadero, Rostov-on-Don – Yerevan, Rostovon- Don – Istanbul, Rostov-on-Don – Tashkent, Rostov-on-Don – Tel Aviv, Saint Petersburg – Beijing, Sochi – Yerevan, and Sochi – Istanbul;
  • Aurora: Vladivostok – Sapporo, Khabarovsk – Niigata, Vladivostok – Jiamusi, and Khabarovsk – Jiamusi;
  • Pobeda: Rostov-on-Don – Baku, and Rostovon- Don – Tbilisi.

International Cooperation

Codeshare agreements

Aeroflot actively cooperates with other carriers under codeshare agreements. These arrangements enable the Group to build its presence in promising markets, gain a foothold in the markets where restrictions apply, expand the route network coverage, and more efficiently use own fleet.

In 2016, the number of marketing flights operated by Aeroflot airline grew from 299 to 320. Agreements for joint free-sale flight operation signed with S7, Finnair and Cubana de Aviacion, and with Aurora Airlines, a subsidiary of Aeroflot (codeshare flights on a freesale basis) entered into force. Joint flights with Air Malta were resumed on the Malta – Moscow – Malta route.

In 2016, Aeroflot had 29 codeshare agreements with foreign and Russian airlines, including:

  • 19 agreements under which Aeroflot airline acted both as a partner operator and a marketing operator: Air France, KLM, Alitalia, Finnair, Czech Airlines, LOT-Polish Airlines, Bulgaria Air, Korean Air, Air Serbia, MIAT, airBaltic, Air Europa, Garuda Indonesia, Icelandair, Kenya Airways, Saudi Arabian Airlines, China Eastern Airlines, China Southern Airlines, and Siberia Airlines PJSC;
  • Four agreements under which Aeroflot airline acted as a partner operator only: Cubana de Aviacion, Iran Air, Tarom, and Middle East Airlines;
  • Five agreements under which Aeroflot airline acted only as a marketing operator, selling partner flights under its code: Adria Airways, Air Malta, Bangkok Airways, Royal Air Maroc, and Aurora airline (codeshare flights on a free-sale basis);
  • Two agreements with Aeroflot Group’s airlines under commercial management arrangements for operation of joint flights: with Rossiya and Aurora.

Commercial management of the flights operated by subsidiary airlines under codeshare agreements enables Aeroflot to implement its model of integrated centralised management in such strategic areas as sales, revenue management, route network and fleet planning.

Interline agreements

As at the end of 2016, Aeroflot airline had interline agreements with 145 carriers, including two subsidiary airlines, five other Russian carriers, and six airlines based in the CIS.

Membership in the SkyTeam Alliance

In 2016, SkyTeam Alliance had 20 members, including Aeroflot, Aerolineas Argentinas, Aeromexico, Air Europa, Air France, KLM, Alitalia, China Airlines, China Eastern, China Southern, Czech Airlines, Delta Air Lines, Kenya Airways, Korean Air, Middle East Airlines, Saudi Arabian Airlines, TAROM, Vietnam Airlines, Xiamen Airlines, and Garuda Indonesia.

Membership of the SkyTeam Alliance enables Aeroflot to expand its route network while offering its customers access to the global alliance’s unique product, and providing Aeroflot Bonus members with an opportunity to enjoy the privileges on the flights of other members of the SkyTeam Alliance.

In 2016, the Alliance’s aggregate route network comprised 1,062 destinations in 177 countries. SkyTeam’s members were making a total of 17,343 flights on a daily basis.

In 2016, under SkyTeam-based cooperative arrangements, Aeroflot serviced 810 thousand passengers and 331 thousand tonnes of cargoes, sold 386 flight segments as part of SkyTeam’s fare products, and issued 6,825 tickets under three corporate contracts. Over 538 million bonus miles were awarded to participants of Aeroflot Bonus programme on flights operated by SkyTeam partners.