The Russian air transportation market grew faster than the world average in 2013 and substantially faster than the European market. According to the Russian Air Transport Agency (Rosaviatsia), volumes carried by Russian airlines increased by 14.2% y-o-y in 2013, and including foreign airlines the Russian market grew by 13.1%. These figures compare with global passenger traffic growth of 5% in 2013, according to IATA. A total of 103.6 million passengers were carried on the Russian market in 2013 by both Russian and foreign airlines.
Passenger carrying on the Russian market
(including foreign airlines), million passengers
Passenger carrying by Russian airlines,
million passengers
Passenger turnover of Russian airlines,
billion RPK
All segments of the Russian market experienced high growth rates during 2013. Domestic routes experienced 10.8% growth of passenger numbers and 9% growth of RPK. A total of 39.2 million passengers were transported on domestic routes. Growth rates were helped by initial steps toward industry consolidation, which is generally beneficial for the Russian industry. The load factor on domestic flights increased by 2p.p. in 2013 compared with 2012 to 75%.
International passenger traffic continued to grow rapidly in 2013, when Russian airlines carried 45 million passengers on international routes, representing an increase of 17.4% y-o-y. The average load factor was 82.1%. Passenger carrying by Russian airlines on flights between Russia and other CIS countries amounted to 7.8 million passengers. The growth of carriage volumes from regional airports to foreign tourist destinations continued in 2013, improving the outlook for Russian regional airport infrastructure.
Development of the Russian market currently depends mainly on three factors:
- Consolidation of regular services, led by Aeroflot Group, S7, UTair and Transaero.
- Rapid growth of airlines specialising in tourist flights, often in association with a particular tour operator.
- The long-awaited revival of regional air transport inside Russia.
Structure of the Russian Air Transport Market by Passenger traffic
(not including foreign airlines),%
Structure of the Russian Air Transport Market by Passenger traffic
(including foreign airlines),%
Structure of the Russian Air Transport Market by Passenger Turnover
(not including foreign airlines),%
Aeroflot Group is taking advantage of all three of these factors and building a multi-brand platform, with each of the Group’s airlines specialising in a particular market segment. In 2013, the Group launched Aurora Airlines in the Far East — a project that is without parallel in Russia and was one of the key events in the Russian market in 2013. Aurora is positioned as a service provider for Russia’s Far Eastern regions, with a mission to develop intra-regional air transport. As a part of Aeroflot Group, the new airline will be able to draw on Group resources to develop its services.
In 2013, Aeroflot Group held 37% of the Russian market for regular and non-regular air transport by Russian carriers and 30.2% of the market including carrying by foreign airlines. The Group’s share exceeds the aggregate market share of its three closest competitors. Aeroflot Group intends to further strengthen its positions in 2014 thanks to the launch of the new low-cost airline, Dobrolet.