S7 Airlines Siberia Airlines

S7 Airlines (legal name - Sibir Airlines OJSC) is the third largest Russian airline. It is based at the Novosibirsk Tolmachevo airport, forming regional hubs in Irkutsk and Domodedovo. Included in the S7 Group of Companies ("S7 Group"); member of the oneworld global aviation alliance.

Performance indicators

2020: Combined revenue of S7 - 1,039,863 thousand rubles

At the end of 2020, S7 reduced revenue by 12% - to 1,039,863 thousand rubles. The data includes the combined revenue of two S7 insourcing companies with the following turnover for 2020: S7 Information Technologies LLC (811,023 thousand rubles), S7 Techlab LLC (228,840 thousand rubles). In the ranking of TAdviser "The largest IT-insourcing companies in Russia" S7 took 24th place. In 2019, the same figure was 1,186,170 thousand rubles.

History

2024

S7 merged IT "daughter" with two other companies of the group

In July 2024, S7 Group announced the reorganization of its three subsidiaries through a merger. As a result of this process, CJSC S7 Group of Companies will merge with S7 Information Technologies LLC and Invest Finance LLC. Read more here

Reduction of 15% of office employees in Moscow

On January 15, 2024, S7 announced a reduction in the number of employees in Moscow. This decision of the airline is associated with a decrease in the raid.

In connection with the change in the route network and the reduction of the flight program in a number of directions from Moscow, S7 Airlines decided to redistribute flight crews and partially reduce the number of employees in the Moscow region. The entire optimization process takes place in full accordance with the current legislation, the carrier said in a statement quoted by TASS.

S7 announced a reduction in the number of employees in Moscow

According to Kommersant, the cuts will affect the sales department, as well as the commercial, financial and economic departments. One of the interlocutors of the newspaper clarified that the company plans to reduce about 13% of the staff of the Moscow office, which is approximately 7% of the number of all employees of the airline. According to other estimates, the reduction will reach 15%, according to the publication of the publication.

According to one of Kommersant's sources, by mid-January 2024, companies from the S7 group are in the process of reorganization and merger, which leads to optimization of staffing. In parallel, the group of companies intends to develop engineering and technical divisions, increasing the number of their employees.

The flight decline in 2023 was due to problems with Airbus A320/A321neo engines, the company had to reduce the winter schedule, as 13 out of 39 engines were not functioning. Such models are widely used by all world carriers, so it is not possible to buy used engines. It will also not be possible to repair the existing ones, since the service is not available in Russia and friendly countries.

Several sources of the newspaper in the aviation industry suggested that the cuts at S7 would begin layoffs at other major airlines.^[1]

2022: Cancellation of all international flights amid Russia's special operation in Ukraine

S7 Airlines on March 4, 2022 announced the cancellation of all international flights from March 5 against the backdrop of Russia's special operation in Ukraine. Tourists will be helped to return home on flights of partner airlines.

2017: Roscosmos and S7 to build orbital cosmodrome

The S7 group of companies, which owns the Sea Launch floating cosmodrome and aviation assets, and the Roscosmos state corporation agreed in November 2017 to build an orbital cosmodrome in Earth orbit together. This multifunctional orbital complex is supposed to be used for assembling and refueling spacecraft, sending them to other near-Earth orbits, as well as for flights to the Moon and Mars. According to experts, this public-private partnership can change the rocket and space industry in our country. For more information, see S7 Space Transport Systems.

In 2017, the group's airlines carried more than 14.2 million passengers.

2012

As of February 8, 2012, the company's air fleet consisted of 43 long-haul and medium-haul aircraft.

2006-2011

• S7 Airlines operated 10 Boeing 737-500 in 2005-2008
• The turning point for Siberia was 2006: on its basis and structural divisions, the S7 Group group of companies was created. In connection with this event in March, the airline surprised not only passengers, but also colleagues and competitors by rebranding and bold colors of aircraft. The modest white fuselages and blue-blue tails of the company's aircraft became bright green with the red and white logo of an almost new carrier - S7 Airlines.
• The state stake in Siberia (25.5%) was repeatedly put up for sale in 2006 and 2007. The negotiations on the sale themselves have been ongoing since 2001, but there were no buyers. At the end of 2009, representatives of the country's main air carrier Aeroflot mentioned the possibility of acquiring a state stake in Siberia, but this did not translate into concrete actions.
• On November 15, 2010, S7 Airlines became a full member of the international alliance
• In 2011, the state again, three times put up its package for auctions, but all of them did not take place due to the lack of applicants for the purchase. Experts explained the failures in the privatization of the package by the fact that it is not interesting for portfolio investors due to the high starting price (1.8-2.9 billion rubles), and for strategic investors due to the size of the package, which does not give the right to actually influence the management of the airline.

Oneworld air carriers.

1957-2005

• In 1957, the first civilian flight on the route Novosibirsk - Moscow on a Tu-104 aircraft was made from a military airfield in the Novosibirsk Region (the future Tolmachevo airport). This event is considered the birth of the Tolmachevsky united air squad.
• 35 years later - in 1992 - the state airline Siberia was formed on the basis of the Tolmachevsky united air squad. In 1994, the company was privatized. Then "Siberia" received the international IATA code.
• In 2001, Siberia Airlines became a full member of the IATA International Air Transport Association. At the same time, the company bought Vnukovo Airlines and became the second largest airline in Russia and the first in terms of traffic on domestic lines. A year later, Siberia began to operate 60% of its flights from Domodedovo Airport, moving the central office from Novosibirsk to Moscow. In the same year, Siberia absorbed the Armenian Armavia, and in the summer of 2004 acquired a controlling stake in the Chelyabinsk airline.
• In 2005, Siberia was the first among Russian airlines to introduce the sale of air tickets for its flights via the Internet.

Information Technology at S7 Airlines

2020: Launch of automatic waste sorting in conjunction with Domodedovo

Moscow Domodedovo Airport, together with S7 Airlines, applied an environmentally friendly approach to the management of non-food waste. Thanks to the joint initiative, about 45 tons of cardboard, plastic and film will be sorted and sent for processing every month. This was announced on February 11, 2020 by the press service of the airport. Read more here.

History of the fleet

Over the years of its history, S7 Airlines operated various types of aircraft. Until the end of 2008, the airline's fleet included such liners as the Il-86, Tu-154 and Tu-204. In 2004, S7 Airlines began implementing a plan to upgrade its air fleet. On November 17, 2008, the operation of Soviet aircraft in the company was completely discontinued.

On May 29, 2007, the airline signed a contract with Boeing for the purchase of 15 airliners Boeing-787 and an option for another 10 such aircraft, thus becoming the first customer of these aircraft among Russian airlines. The delivery time of the first aircraft is 2014; the catalog value of 15 liners is $2.4 billion. However, at the end of January 2009, due to the economic crisis and the difficult financial situation of the airline, this contract was terminated.

Since April 2008, S7 Airlines began flying the new Airbus A320 aircraft. Under the operating lease agreement concluded with ILFC, in 2008 S7 Airlines received 4 aircraft of this type. All of them are equipped with CFM56 engines manufactured by CFM International. In 2009, deliveries of another 25 aircraft began.

Some of the regular domestic flights are operated on Boeing 737-800 and Boeing 737-400 aircraft by Globus, a subsidiary charter airline.

Activity

The company has an extensive network of routes with interchange hubs in Moscow (Domodedovo), Novosibirsk (Tolmachevo, base airport) and Irkutsk.

According to the results of 2006, Siberia Airlines ranked third in terms of the number of passengers transported on charter flights (950 thousand passengers), losing to Atlant-Soyuz (1.14 million passengers) and VIM-Avia (980 thousand passengers). Charter transportation accounts for 19% of the passenger traffic of AK Sibir [17]. In 2008, most charter flights were transferred to the Globe subsidiary.

In 2007, S7 Airlines aircraft completed more than 47.5 thousand flights, on which 5,698,1 thousand passengers were transported. The increase in the number of passengers transported on domestic airlines was 22%, and on international airlines - 8%. Passenger turnover in 2007 exceeded 13.9 billion passenger kilometers. In 2007, more than 33.3 thousand tons of cargo and mail were transported. Freight turnover in 2007 amounted to more than 1.3 billion ton kilometers.

The number of passengers transported in 2008 amounted to 5,892,548 people, 51,422 flights were completed.

M&A

In 2002, Siberia Airlines gained control of Vnukovo Airlines, as a result of which it expanded the network of routes from Moscow.

Also in 2002, Siberia Airlines bought a controlling stake in Armavia Airlines. In 2005, Armavia was sold.

In 2008, an offer to buy 43% of Austrian Airlines was sent to the Austrian State Property Management Agency (OeIAG). If the deal were concluded, the Russian airline would receive an additional 3 million passengers a year at Vienna airport. However, the deal for S7 fell through due to the fact that the company did not have time to hand over the documents on time. As a result, Austrian Airlines was acquired by Lufthansa.

Route network

S7 Airlines, together with its subsidiaries, forms an extensive route network, which includes 83 destinations (41 domestic) in 26 countries of the world.

Awards

S7 Airlines has repeatedly won various competitions, exhibitions and awards.

In 2001, the general director of the airline Vladislav Filev was recognized as the best manager of the year in the air. transport Russia

At the international tourist fair of the MITT-2002 in Moscow, Siberia was recognized as the best airline in Russia.

In 2003, S7 Airlines was the first Russian airline to win the Flight International Aerospace Awards of the British Flight International magazine in the Corporate Strategy nomination.

In February 2004, she received the award of the American Air Transport World magazine in the nomination "Market Leaders." In 2007, the airline won the annual national award "People's Mark/Mark No. 1 in Russia."

Subsidiary airlines

Globus Airlines [править]