I am trying to find out corporate information about Siberian Airlines
(2nd largest airline in Russia).. in terms of financials, results, and
also about the airline industry in Russia in general. How big are
Siberian, how financially stable, how do they advertise and market
themselves in Russia ?. Can you compare them to an equally-sized
western airline ? Their website is
http://english.s7.ru/company/about.shtml  I need answers in English !

The russian aircompany "Siberian Airlines" (Novosibirsk) is one of the
largest aircompanies of the country and has 30 years experience at the
market of air transportations.
"Siberian Airlines" today is: dozens of regular flights to cities of
Russia, CIS, China and Germany;
charter flights to Turkey, UAE, India, Thailand, Syria, Greece, Korea
and to many others countries all over the world;
fleet, consisting of aircraft Tu-154, IL-86, An-24, An-26, An-32; 
high flight safety; 
international standard service; 
flexible system of tariffs and discounts for various categories of
passengers;
cargo transportations on regular and charter flights through Russia,
CIS and abroad;
the largest beyond the Ural hanger and technical base, laboratories on
aircraft repair and handling;
reservation and ticketing for flight of "Siberia Airlines" in many
cities and tourist agencies;
representative offices in Moscow, St-Petersburg, Vladivostok,
Petropavlovsk- Kamchatsky, Dubai (UAE), Larnaca (Cyprus),
Frankfurt-am-Main (Germany), Tashkent;
own tourist agency. 
Reliability, safety and high quality of passenger handling - provided
by experienced and skillful personnel of our company shown "Siberian
Airlines" to be a reliable partner and carrier.
23.10.02  Siberian Airlines Offered Membership in American Chamber of
Commerce
   
   NOVOSIBIRSK, October 23 /FIS/. Andrew B. Sommers, President of the
American Chamber of Commerce, has offered the Novosibirsk Siberian
Airlines a membership in the organization. Currently two companies
represent Russia in ACC, Aeroflot and Volga-Dnepr. In a meeting with
airline management, Mr. Sommers noted that Siberia is now the second
largest Russian airline, with an annual turnover approximately USD 250
million. Siberian Airlines sells up to 85% of its traffic and has its
own maintenance facilities. [RIA Novosti]

FROM: Brissie LionsDATE: 01/29/2001 05:59:08SUBJECT:  Sibir Airlines
Posts Preliminary Results In 2000, Siberia Airlines carried 832 728
revenue passengers, which was =
by=20
11.8 % more than in 1999, Gleb Osokin, spokesman for Siberia Airlines
=
told AVIA.RU today.  The passenger turnover was up by 10.8 %, reaching
2 =
635.5 mln passenger-kilometers.  Passenger-kilometers increased by 1.5
% =
at domestic routes and by 70 % at international routes.  Last year,
the =
airline carried 8 993 tons of cargo and mail, an increase of 0.7 %
over =
1999 results.  Siberia made a total of 8 191 flights, which was by 7.1
% =
more than in 1999.  The seat occupancy was 69 %, with payload reaching
=
74 %.  The airline`s on-time performance achieved 86.4 %.

The total flying time of Siberia`s fleet rose by 5.8 %.  Remarkably, a
=
14.2 % increase in IL-86 operations was attributed to its active use
in =
the summer charter program and on Novosibirsk-Moscow route.  A slight
=
increase in operation of Tu-154B /2.5 %/ and Tu-154M planes /+1.5 %
was =
explained by the growth of domestic traffic.  A 24 % drop in Tu134A =
operations arose from cancellation of lost-making flights to the CIS =
destinations and unavailability of this aircraft type in December.

Last year Siberia started implementing its multi-phase fleet =
modernization program.  In April, the airline purchased the Tu-204-100
=
jetliner, which was previously operated by Siberia on the leasing
terms. =
 The deal was financed through a credit facility arranged by Siberia`s
=
strategic partner Sberbank.

As of Jan 2001, Siberia`s fleet comprises 28 jetliners, including
eleven =
Tu-154B, nine Tu-154M, seven IL-86 and one Tu-204-100.

Last summer, the airline opened up scheduled services to Munich and =
Hannover from Moscow`s Vnukovo airport, which allowed carrying
thousands =
of passengers from Western Siberia to Germany via Moscow.  This year,
=
Siberia plans to launch dozens of combined flights for tourists from =
Western Siberian cities to popular European resorts via Moscow.  In =
addition, the airline inked an interline agreement with Lufthansa,
which =
enabled Siberia`s passengers to reach practically any destination in
the =
world, using scheduled flights of the both carriers via suitable =
connections at Frankfurt.

With changeover to the winter schedule, Siberia combined its flights =
between Yakutsk, Novosibirsk and Moscow, attracting scores of transit
=
passengers by introducing end-to-end fares.  In mid November similar =
fares were introduced on Blagoveshchensk-Novosibirsk-Moscow route.  =
Effective from December 5, 2000 the airline added an evening flight =
between Irkutsk and Moscow, allowing an additional connection with =
Vladivostok - Irkutsk flight.

The airline`s press-service notes that traffic on Novosibirsk-Moscow =
route rose by 5 %, while the overall traffic on this route carried by
=
all carriers dropped by 25 %.  This situation is explained by the fact
=
that Siberia`s main competitors Transaero and Vnukovo Airlines either
=
dropped or suspended operations on this route.  This allowed
increasing =
Siberia`s share in Moscow`s traffic.

During 2000, the airline opened up sevaral ticket offices at
Frankfurt, =
Moscow, Sochi and Novokuznetsk.  In Jan 2001, one more office was
opened =
in Irkutsk.  Siberia also anticipates opening additional ticket
counters =
at Omsk, Yakutsk, St.  Peterburg, Krasnodar and Vladivostok.  In =
addition to developing its own ticketing network, Siberia
substantially =
increased the number of contracted agents both inside and outside the
=
country.

The airline ended up last year with better financial results than in =
1999. The cash flow from January through November 2000 was up by 1.5 =
times comparing to the previous year results.  The backbone of the
cash =
flow came from flights to Moscow, Germany and China.

During the summary period, direct operating costs increased by almost
by =
1.5 times over the 1999 results.  The increase in operating costs was
=
primarily associated with monthly hikes of fuel and airport charges
both =
in Russia and abroad.  For instance, operating costs for =
Novosibirsk-Moscow, Kemerovo-Moscow and Novosibirsk-Hannover routes
rose =
by nearly 55 %.

During 2000, the profit margin, (which is normally calculated as net =
cash flow disregarding interest rate and exemptions, but taking
account =
of taxes, was up by 1.6 times, comparing to the previous year.  The =
substantial increase in profit margin is associated with the following
=
factors:
- control over seating capacity in reservation systems;=20
- cancellation of lost-making flights;=20
- use of quotas for cabin classes;=20
- introduction of new booking rules;=20
- introduction of Tu-204 in scheduled service.

/AVIA.RU/=20

Siberian Airlines is based in airport "Tolmachovo" (Novosibirsk),
which is the largest center in the way from Europe to Asia. There are
large centers of the Airline in Moscow and Irkutsk. The main activity
of the Airline are regular and charter flights; carriage of passengers
and cargo transportation.

Today Siberian Airline offers to its clients the largest network of
domestic routs. There are branches of the Airline in Moscow, Irkutsk,
Kemerovo, Barnaul and Tomsk, Siberian own representatives are opened
in Saint Petersburg, Peking, Frankfurt/M, and in other cities where
its routes are paved. New technologies are actively used; organized
and successfully used transfer joints of flights in domestic routes as
well as in international ones.

The airline has large aircraft fleet, containing several tens of
main-line liners IL-86, Tu-154B/M and Tu-204. Most of the airplanes,
used by the airline are equiped with business-class interior. At the
same time a lot of work is keeping for widening and renewing the
fleet.

Policy of continual quality improvement of offered services let
Siberian Airlines successfully to meet competition with others
carriers. As a result the company keeps the major place in its
traditional routes as well as has the opportunity to meet competition
in other markets.

The company is an actual member of IATA (International Air Transport
Association and balancing enlarges the geography of international
flights. During last years the Intensive work is keeping for signing
the bilateral agreement of "interline" and foreign companies. For
today such agreements with the largest carriers as Germany
(Lufthansa), Korea (Korean Air, Asiana Airlines), China (Air China),
Japan (Japan Air System), Uzbekistan (Uzbekiston Havo Yullari) are
signed.

Efficiency of aircraft fleet helps to provide Siberian Airlines
aerotechnical complex, (one of the largest in Russia). Siberian
Airlines' technical subdivisions certified for keeping all kinds of
maintenance works of company' planes.



Travel agency found in 1994 is also a part of Siberian Airlines.
Branches of which are cooperating in a number of countries. Strategic
goal of Siberian airlines is declaration of it in Airline community as
a competitive airline according to common standards. Priority-driven
directions for achievement this goal are:

Service improvement , development and practice new kinds of service; 
Optimization the route network, schedule and joints; 
Perfection and renewing the aircraft fleet; 
Cooperation with foreign airlines in passenger transportation between
Russia and other cities.
Company's energies meet with public acceptance. In 2001 - 02 Siberian
Airline was the winner in nomination "The best Russian airline" in
contest Russian Travel Awards twice. In August 2001, in international
Air Space Contest MAKS-2001 the Director General Vladislav Filyov was
awarded with diploma "The manager of the year in air transport of
Russia". In December, 2001 Siberian Airlines became a laureate of
national contest ''Russian organization of high social effectiveness"
and it was under the aegis of the government of the Russian
Federation.




Last update:
29.07.2002

Perspective business-pojects of Siberian Airlines


Multimodal transport center 
Inter-regional Information-Communication Center 
"SCB of laser engineering" 
"Tupolev" Center in Novosibirsk 
Here we would like to stop on the range of projects, which are not the
main business for the airline. Almost all of them were begun as
solving of "inner" questions, as for example, large expenses for
telecommunication and other technical supplying of sales, and at the
same time a little economical return. But during the business these
projects began to go out to the regional branch level as the whole or
to the word one, and accordingly, now need some kind of participation
state structure and of "neighbouring sides".

At the begining we want to say some words about two projects, which
are illustrating Airline's aspiration for solving the problems of
regional and industrywide kind.

Multimodal transport center

First of all, the project of Multimodal transport center development.
Project consists of some directions and the main one is development of
"Tolmachovo" airport (Novosibirsk). Specialists of the airline have
already worked out the conception of the project of International
terminal building, which may serve several flights at the same time,
has transit zone, permissive completely automatize the service process
of servicing passengers and others. Availability of such a terminal
will let to wide the extent and geography of Airline's
transportations. 10 flights from Europe to Asia which are predicted
according to the project ,and the same number back, mean about 4 mln.
passengers a year. Taking into account the extent of Airline's
transportations the total extent of traffic flow is at least 6 mln.
And this leads out the Airline to the first place among Russian
carriers. At that there will be served much more passengers in
"Tolmachovo" than in any Moscow or Saint Petersburg airport.
Novosibirsk with the according development of other kids of transport
and infrastructure may be the largest transport center in Russia. Now
the project is at the stage of planning the financial justice. The
cost of building of the international terminal is about $150-225 mln.
The total cost of the project of building of the Multimodal transport
center is $600.

Inter-regional Information-Communication Center


We would like to mention separately about the importance of one of the
parts of multimodal center- informational provider of transport flows.
Only modern informational center and reliable communication channals
may provide fast delivery by electronic way of any transport
documents, distribution into the multimodal transport centers like in
Novosibirsk any information about time-table of airliners, sea crafts
and river boats, consists and autos in every sides of the country,
will be able to prevent fails while transporting and so on. In this
direction we have done a very important thing. Up today The
Inter-regional Informational - Communication Center for providing
Siberian Airlines' activity was created. This center unites about 300
offices and 1000 places of work in more than 100 cities of Russia,
Germany and also England, Israelе, China, South Korea and in Cyprus.
During its work the most up-to-date technologies and equipment is used
(it will be particularly mentioned below).

"SCB of laser engineering"

Siberian Airlines actively supports scientific working out and their
practice. One of the examples is creating of industrial production of
strong automated laser technological complexes on the base of the
Institute of theoretical practical mechanics of SIBERIAN DEPARTMENT OF
RUSSIAN ACADAMY OF SCIENCE working out. These lasers has several
unique technical characteristics. According to technology used (gas,
СО - 2), making power, safety of work and minimum operating costs they
have no analogues in Russia and are in the world top-model. Why do we
develop this project. Because with the help of such lasers you may cut
and weld the aluminum, and it is - "revolution" in technology of
production of plane hulls. This year already we era planning to
produce 10 lasers with power of each not least 5 kW. And they will be
produced by industrial way in Novosibirsk on the base of tailor-made
for this co-ownership ( Siberian Airlines and the Institute of
theoretical and practical mechanics of SIBERIAN DEPARTMENT OF RUSSIAN
ACADAMY OF SCIENCE) plant "SCB of laser techniques" (www.laserlab.ru).

We would like to draw your attention to the point that this project
has also others prospects, connecting with laser sales in the World
market, which up to 2000 year reached $70 billion. Rates of growth of
this market very high - about 80 - 90 % a year. And this against a
background of the total falling of activity in the field of high
technology. Russian potential estimates about 10% of the World market,
that is $5 - 10 billion. Share of our "lasers" may make up 10 - 20%,
that ias $0,5 - 2 billion.

"Tupolev" Center in Novosibirsk

They summed up the work of commission of Public service of civil
aviation of Russia in Novosibirsk. One of the main task was to study
the possibility of creating the Center of Maintenance and Repairing
(TS and R) of airplanes of "Tupolev's"model.

In the concluding decision it is considered, that The Aviation
Technical System of Siberian Airlines has necessary industrial areas
and qualified staff for creating the Center of Maintenance and
Repairing (TS and R), it allows to wide the sphere of the Airlines'
activities. The potential clients of the center in Novosibirsk may be
aircraft operators on the territory from the Ural to the Far East. The
total number of TU-154 aircrafts in this region is more than 100. At
the same time some companies, including foreign companies, have seen
carrying out the maintenance of their airplanes just in Novosibirsk.

Inter-Departmental Commission worked in Novosibirsk at the end of
February 2001. Lev Lanovsky, the chief designer of TU-204 airplane,
specialists of company named by Tubolev, and of The State Science
Novosibirsk Institute of Civil Aviation and of The State Science
Novosibirsk Institute of aeronavigation and of East Siberian District
of inter-regional territory administration of air transport of
Ministry of transport of The Russian Federation. The head of the
commission was the deputy director of East Siberian District
inter-regional territory administration of air transport of Ministry
of Transport, Victor Volchek.

Consisting of the commission the deputy of the head of The Department
of flight inspection of aircrafts of the State Service of Civil
Aviation, Alexander Emtsov, visited Novosibirk, and he expressed his
view on Aviation Technical System of Siberian Airlines: "production
basis of Siberian Airlines is one of the largest in the country.
During our visit we made sure of this once more. The airline possesses
the necessary buildings, modern equipment and experienced specialists.
First class aircrafts are successfully exploited and serviced here for
a long time. Besides, the wish of the management of the airline to
develop its production potentialities is very important. That's why we
consider the base of Siberian Airlines in Tolmachovo as a powerful and
prospective Center of Maintenance and Repairing".

The creation of Centers of Maintenance and Repairing in Russia on the
basis of aircraft repairing plants and of airlines is the modern
conception of State Service of Civil Aviation in the sphere of
maintenance of flight suitability of aircrafts. The presence of Center
of Maintenance and Repairing in the airline will allow especially to
realize in corpore the implantation of exploitation of aircrafts
"according to the suitability". Such method means the regular control
of technical maintenance of different parts of the airplane and of
aircraft equipment to extend the term of the exploitation in case of
absence of serious defects and damages.

According to the words of the director of Aviation Technical System,
Sergey Tchernov, the main sense of creation of a Center of Maintenance
and Repairing on the basis of Siberian Airlines is reducing the
expenses (on 15-30 %) on maintenance and repairing of proper aircraft
fleet as well as on aircrafts of other companies. The concentration of
equipment, fund of spare parts, increase of volume of work will allow
to considerably reduce the prime cost of maintenance and repairing and
to increase the efficiency of use of the available means. Besides,
because of competition from the part of the Aircraft Repair Plant, the
general price level on big repair and reclamation works must reduce.

As the positive example we may name the activity of the technical
subdivision of "Lufthansa" airline (Germany) - "Lufthgansa technik".
The funds, which are earned by this subdivision for maintenance of
airplanes of the other airlines are enough with interest to maintain
the proper fleet of "Lufthansa".

In the near future to discuss the further questions, connected with
creation of Center of Maintenance and Repairing it is decided to make
some work, such as: to work out an improved program of Center of
Maintenance and Repairing of aircrafts of Tupolev's model, which
provides more effective exploitation of aircrafts, to establish
organizational, technical and informational cooperation with creators
and manufacturers of aircrafts and spare parts as well as with
scientific centers of civil aviation.

The decision to create the certification requirements on The Center of
Maintenance and Repairing of aircrafts of Tupolev's model on the basis
of Siberian Airlines was signed by the chief designers Alexander
Shengard (TU -154) and Lev Lanovsky (TU - 204).

West-Siberian District Administration of Air Transport takes an active
part in certification and in drawing up necessary deeds for creation
of The Center of Maintenance and Repairing on the basis of Siberian
Airlines.

Our information

The production basis of Siberian Airlines includes the largest in
civil aviation behind the Urals hangar system of the airline, which
square is about 10 thousand square meters. Aviation Technical System
is certified for all kinds of urgent and regular maintenance of
aircrafts (TU-154B, TU-154 M and IL-86) as well as for most all kinds
if maintenance of the TU-204 aircraft. The line service station of
maintenance of the airline is situated in the airport "Vnukovo" and in
the city of Meshhed, Iran. The number of the stuff of the Aviation
Technical System is more than 800 people.






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