How will Aeroflot save on IT of new "subsidiary" - low-cost airline? Interview with Kirill Bogdanov

TAdviser: Kirill Igorevich, what IT systems will be used in Dobrolet at the time of the beginning of activity?

Kirill Bogdanov: It is possible to carry a booking system and an enterprise management system to main systems. As the first Dobrolet will use Navitaire - it is the American system which is used by 90% of budget airlines in the world. Its advantages consist in simplicity and low cost in comparison with other similar systems.

As the business class at budget carriers is not provided, a system provides support of only 2-3 rates, in difference, for example, from Sabre providing the choice from 20 rates for passengers of Aeroflot. At the same time Navitaire has a good Internet engine allowing to sell tickets on the website. Readiness of the website is expected in March.

Here it would be desirable to note that, unlike all other our subsidiary companies which have the same code as Aeroflot - SU and in which booking is performed through the general booking system of Aeroflot, Dobrolet itself will sell tickets, under the own code which as we expect, will be assigned for it by May.

Enterprise management, in turn, will be exercised based on 1C - the most inexpensive system. With its help in Dobrolet it is going to automate office-work, accounting and tax accounting, accounting of income and personnel, payroll, financial accounting, purchase management, accounting of the equipment and materials. At the same time and it, and the booking system for Dobrolet is going to be used according to the SaaS model for the purpose of minimization of expenses on IT.

TAdviser: And still some systems will be used?

Kirill Bogdanov: Yes, the system of production planning, first of all, for crew planning, management of sendings which to Dobrolet will be delivered by Aviabit company will be used.

For maintenance and repair, in turn,the Amos system will be used. It is used by Aeroflot which bought in addition additional licenses for giving in lease to Dobrolet. I think that afterwards Amos at Dobrolet and will remain.

TAdviser: Where will the data of passengers processed in a booking system be stored?

Kirill Bogdanov: The booking system on service model to Dobrolet will be provided directly by Navitaire, thus, all data will be processed in its data center in America.

In the test mode the homepage of the website of Dobrolet earned in November, 2013.

TAdviser: With what companies "Dobrolet" will cooperate in a part of payments for tickets?

Kirill Bogdanov: In Internet acquiring we agree with Alfa-Bank with which Aeroflot cooperates now, including – on the subsidiary companies. Alfa-Bank - our old partner, and with it we via the website sell tickets more than for one billion dollars a year. The bank from these sales has the commission. Dobrolet will have no such turnovers, but this is "subsidiary" of Aeroflot therefore we try to settle the same terms for it as for Aeroflot. On cash payments Dobrolet will cooperate with Qiwi.

TAdviser: How many users will be in Dobrolet at the time of the beginning of work? Whether there will be in the state IT specialists?

Kirill Bogdanov: We are going to begin flights in April - May, and originally without flight personnel the number of employees of the company will be about 80 people. "Dobrolet" is going to begin work with two airplanes, in the long term them will be until the end of the year eight, and in 2015 is going to enter 16 courts. I think that even with increase in number of aircrafts of Dobrolet essentially specified number of employees will not change: and everything will provide this "frame" as the most part of work - on outsourcing.

In the IT direction one employee will work at the initial stage in the company. The number of like those can increase at most to five people as on service of the ADP equipment, the jobs Dobrolet is going to sign the contract with the external company.

TAdviser: At Dobrolet support and the maintenance of IT infrastructure in comparison with Aeroflot will be how cheaper?

Kirill Bogdanov: I think, the difference in costs will make at least 20%, and somewhere and all 60%. It is reached, certainly, not due to quality, just in Dobrolet the small state and some transactions become manually, there are simplest systems.

If to compare, for example, conditions of Sabre and Navitaire, the difference on expenses makes about 40%, just because in the last there is no revenue management, management of rates, the prices, actually there on one direction one, at most two prices: or purchasing the ticket in a month at the cheapest price, or less than a month already at the second price.

TAdviser: Whether some calculations how economy on IT were carried out will affect the final cost of the ticket of Dobrolet for the passenger?

Kirill Bogdanov: In my opinion, IT making in the cost of tickets small, the basic, of course is a fuel, kerosene and leasing of airplanes. For Dobrolet reduction of price of tickets for 40% in comparison with Aeroflot is planned. For this purpose we expect adoption of the amendments in the code of civil aviation permitting non-refundable tickets and lack of a power supply onboard for passengers. These questions were brought up in the State Duma even last summer, but they slowly are solved. Now our lawyers work with deputies, and I hope that after all amendments will be adopted because without eases in the code it will be very heavy to us to constrain low prices.

If to remove restrictions on return of tickets and a power supply, we calculate that in 5-6 years Dobrolet will come approximately for transportation of 10 million passengers a year as the service of budget transportations in Russia is very demanded: our population is much less mobile, than Europe or America, because of expensive ticket prices.