Information Technology and Innovation

Innovation-Driven Development

As the industry’s leader in Russia and a major European airline, Aeroflot seeks to set standards in technological advancement and innovation. The Company is focused on continuously driving innovations across its operations.

Innovative Development Programme 2020 (the “Programme”), approved by Aeroflot’s Board of Directors on 24 June 2011 (Minutes No. 16) and by the working group on Private-Public Partnership in Innovation under the Government Commission on High Technologies and Innovation on 28 June 2011, defines the key focus areas of the Company’s innovative development. In 2016, the Programme was updated and extended to 2025.

The Programme’s goals and KPIs reflect long-term development vision for the Russian and international air transport industries, as well as the innovative profile of Aeroflot and its subsidiaries, and the goals and KPIs of the Long-Term Development Programme, Strategy and Investment Programme of the Company.

Summary of Aeroflot Group’s Innovative Development Programme

Programme’s purpose	support the implementation of Aeroflot Group’s strategy and gain technology leadership in the global aviation industry.
Key focal areas	improve flight safety build an integrated security and anti-terrorist system improve operational efficiency and promote resource saving automate operating processes.
Key Performance Indicators (KPIs)	reduced costs of product with improved marketability energy savings reduce environmental footprint increased labour productivity.
Key initiatives	introduce new types of aircraft deliver reliable, punctual, accessible, high-quality air services increase labour productivity improve operational performance drive energy efficiency and reduce the environmental footprint increase the share of Russian-made innovative products used in our operations harmonise the route network of Aeroflot Group expand the application of innovative solutions.

R&D costs by segment

R&D costs by researcher

Key innovative projects in operations in 2016

New data centre

Aeroflot and IT company Technoserv completed a new data centre based on equipment supplied by Hewlett Packard Enterprise. The new backup DC boosted the capacity of the Company’s primary data centre by two and a half times to c. 110 racks. The Company’s data centres accommodate hardware and software platforms (computing resources, data storage systems) to support the operation of all corporate IT systems, including data storage, processing and transfer. Expansion of data centre capacity will enable the Company to introduce and roll-out new IT solutions and services to support our rapidly growing business, larger fleet and higher traffic.

Development and deployment of a pilot version of an integrated information security system at Aeroflot

Aeroflot is focused on the development and trial deployment of a pilot version of an integrated information security system to structure, streamline, and automate its processes and procedures. This solution provides anti-virus protection and protection against data leaks, prevents DDOS attacks and supports risk management.

Construction of a new advanced hangar facility

The new hangar facility for repair and maintenance of Boeing 777 type aircraft is completely unique for Russia. Once completed, it will streamline maintenance processes and improve efficiency by reducing open-air maintenance of Boeing 777 type aircraft.

Development and launch of domestic multi-purpose deicing fluid

The Company is involved in an R&D project to develop a de-icing fluid, implemented by Kazan National Research Technological University. The research project aims to reduce reliance on imported de-icing fluids. Among other priorities, the researchers focus on making the product environmentally safe.

Development of a pilot hardware and software package for measurement and integral analysis of a sniffer dog’s physiological responses to objectivise dog inspection results

The solution will be used by the canine service to improve security and prevent emergencies. It will serve to maximise efficient interaction between the security system’s biological and technical components in detecting various substances.

Introduction of remote work management

The Company has designed a methodology to remotely organise and administer activities of Aeroflot’s staff. Remote management of certain tasks will decrease our operating expenses and increase staff mobility.

Information Technology

In 2016, Aeroflot continued implementing a broad range of programmes to roll out advanced IT solutions across all areas of its activities. Digitalisation drives wider application of advanced digital technologies and, as such, has become a key avenue of development for the entire Group. IT projects are pursued as part of Aeroflot’s Innovative Development Programme, which provides for building a shared information space across the Group through a number of initiatives, including:

unification and integration of IT systems across the Group’s airlines;
roll-out of uniform operations-related IT solutions;
automation of route network and fleet management;
development of a single ticket sales system for all flights operated by the Group airlines;
development of a single system for aviation fuel procurement;
roll-out of effective IT solutions to support in-flight and airport passenger service.

Key IT projects in 2016

Website and mobile applications
Further enhancement of the mobile application for passengers	In 2016, Aeroflot continued to further enhance its proprietary mobile application for passengers, seeking to provide an even better user experience. E.g. the Company added a feature that scans and saves travelling passport data in the app. It also added functionality to save personal data of travel companions for easier booking, purchases via Apple Pay, and push notifications updating passengers on their flights. The application also generates tailored offers for passengers using iBeacons to boost sales.
Website enhancement to assist air travellers with disabilities	Aeroflot’s website has been enhanced to make it accessible to disabled travellers in line with the requirements of the United States Department of Transportation.
Region-specific website customisation	The website customisation function offers users a localised version depending on the country of login to make it more user-friendly.
Modification of the Content Management System (CMS)	CMS modification aims to expand content customisation capabilities and speed up the updating of websites in different languages.
New booking system	As part of our project to shift to a new pricing policy, we have introduced a new booking system to automate sales in online channels. The new online booking system is designed to enable passengers to book air tickets via the airline’s primary and mobile websites. The system is a 100% proprietary solution, interfaced with Sabre via web services. With this system in place, the Company can now quickly and more flexibly adapt and respond to user requirements.
Fraud monitoring module	A new system designed to create and manage rules and filters of the fraud monitoring module within the payment gateway enables more effective checks of suspicious activity related to online sales of air tickets.
Information security
Development of a personal data protection system for the Company’s website and Sabre IX platform	In order to protect personal data in accordance with applicable laws, Aeroflot has put in place a project to simulate information security threats to users of Aeroflot.ru website and Sabre IX. Measures to address existing IT threats to these systems were developed, and Aeroflot intends to subsequently extend them to other systems of the Group. The project is scheduled for completion by late 2017.
Safe Key	The Safe Key protocol will enable Aeroflot to accept payments made with American Express cards via its official website more securely. As a result, the Group will reduce its financial losses caused by fraudulent online purchases of air tickets.
Improved sales process
Building an integrated airline retailing environment under the NDC programme	Aeroflot has started building an integrated air retailing environment in accordance with IATA’s NDC (New Distribution Capability) standards. The concept of unified distribution environment is driven by an innovative approach to adopting common standards of access to the airline’s systems via all potential retailing channels. The airline will be able to identify the end buyer that has requested the product and generate a tailored personalised offer, which will dramatically improve loyalty among agencies and passengers. The project is scheduled for completion by late 2017.
Big data enabled dynamic segmentation	In 2016, we designed and launched a big data enabled dynamic segmentation IT system. The new system uses data processing, machine learning and simulation to boost the inflow of customers.
In-flight innovation
Internet On-Board project	In 2016, we launched in-flight Wi-Fi service on two new Boeing 777s. Software was upgraded on twenty-two A330s. New time-based tariffs and no-voice GSM services are now offered on all of Aeroflot’s widebody aircraft.
SITA CrewTablet mobile app for flight attendants	In 2016, Aeroflot continued to implement a project to equip flight attendants with CrewTablet tablet-based applications. This mobile application designed by SITA enables crew members to use their tablets to quickly and easily access all passenger and operational data to enhance in-flight services to customers. Another 700 tablets were distributed under the programme in 2016.
Company management
Manager Dashboard	Manager Dashboard is a unique patented IT system developed by Aeroflot for desktop PCs and tablets to track consolidated data from all operational and commercial systems operated by the airline. The solution provides the management with online access to up-to-date information on any out of the 427 indicators used to give a snapshot view of the airline’s business activity.

Website and mobile applications
Further enhancement of the mobile application for passengers	In 2016, Aeroflot continued to further enhance its proprietary mobile application for passengers, seeking to provide an even better user experience. E.g. the Company added a feature that scans and saves travelling passport data in the app. It also added functionality to save personal data of travel companions for easier booking, purchases via Apple Pay, and push notifications updating passengers on their flights. The application also generates tailored offers for passengers using iBeacons to boost sales.
Website enhancement to assist air travellers with disabilities	Aeroflot’s website has been enhanced to make it accessible to disabled travellers in line with the requirements of the United States Department of Transportation.
Region-specific website customisation	The website customisation function offers users a localised version depending on the country of login to make it more user-friendly.
Modification of the Content Management System (CMS)	CMS modification aims to expand content customisation capabilities and speed up the updating of websites in different languages.
New booking system	As part of our project to shift to a new pricing policy, we have introduced a new booking system to automate sales in online channels. The new online booking system is designed to enable passengers to book air tickets via the airline’s primary and mobile websites. The system is a 100% proprietary solution, interfaced with Sabre via web services. With this system in place, the Company can now quickly and more flexibly adapt and respond to user requirements.
Fraud monitoring module	A new system designed to create and manage rules and filters of the fraud monitoring module within the payment gateway enables more effective checks of suspicious activity related to online sales of air tickets.
Information security
Development of a personal data protection system for the Company’s website and Sabre IX platform	In order to protect personal data in accordance with applicable laws, Aeroflot has put in place a project to simulate information security threats to users of Aeroflot.ru website and Sabre IX. Measures to address existing IT threats to these systems were developed, and Aeroflot intends to subsequently extend them to other systems of the Group. The project is scheduled for completion by late 2017.
Safe Key	The Safe Key protocol will enable Aeroflot to accept payments made with American Express cards via its official website more securely. As a result, the Group will reduce its financial losses caused by fraudulent online purchases of air tickets.
Improved sales process
Building an integrated airline retailing environment under the NDC programme	Aeroflot has started building an integrated air retailing environment in accordance with IATA’s NDC (New Distribution Capability) standards. The concept of unified distribution environment is driven by an innovative approach to adopting common standards of access to the airline’s systems via all potential retailing channels. The airline will be able to identify the end buyer that has requested the product and generate a tailored personalised offer, which will dramatically improve loyalty among agencies and passengers. The project is scheduled for completion by late 2017.
Big data enabled dynamic segmentation	In 2016, we designed and launched a big data enabled dynamic segmentation IT system. The new system uses data processing, machine learning and simulation to boost the inflow of customers.
In-flight innovation
Internet On-Board project	In 2016, we launched in-flight Wi-Fi service on two new Boeing 777s. Software was upgraded on twenty-two A330s. New time-based tariffs and no-voice GSM services are now offered on all of Aeroflot’s widebody aircraft.
SITA CrewTablet mobile app for flight attendants	In 2016, Aeroflot continued to implement a project to equip flight attendants with CrewTablet tablet-based applications. This mobile application designed by SITA enables crew members to use their tablets to quickly and easily access all passenger and operational data to enhance in-flight services to customers. Another 700 tablets were distributed under the programme in 2016.
Company management
Manager Dashboard	Manager Dashboard is a unique patented IT system developed by Aeroflot for desktop PCs and tablets to track consolidated data from all operational and commercial systems operated by the airline. The solution provides the management with online access to up-to-date information on any out of the 427 indicators used to give a snapshot view of the airline’s business activity.

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