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Aerof lot
90
Years And
Counting
Photos: Aeroflot
By Stephani Hawkins I Ascend Editor
ASCEND I PROFILE
A
A
eroflot, the world’s third-oldest
airline (operating since February
1923), recently celebrated 90 years
as one of the world’s most prominent commercial aviation brands. As Russia’s
national carrier and largest airline, it only
gets better with time. In the last few years
alone, the airline has reached significant
milestones.
In 2009, Aeroflot opened Terminal D,
Moscow’s newest airport terminal, which
some of its SkyTeam alliance partners have
also chosen. In 2011, it opened the Aeroflot
Aviation School, which offers training in 120
aviation-related professions. With an aggressive plan in place, the school will graduate
160 pilots a year.
It also, that year, expanded its membership
in the SkyTeam alliance by joining SkyTeam
Cargo. In addition, it acquired a number
of Russian regional airline companies from
Rostekhnologii (Russian Technologies State
Corporation).
Clearly, the airline intends to continue on
its successful path, but it is not solely about
flying business and leisure passengers to
their desired destinations. As a Group, it
provides jobs to close to 29,000 employees,
and it generously supports its community.
Aeroflot, which provides flights to 185
destinations in 53 countries, plays an active
role in its community through on-going
support of charitable organizations and community events. In 2010, the company made
it to the top 10 in Russia’s Corporate Social
Responsibility Index, taking the fourth position on the list. Aeroflot is actively involved
with a variety of social initiatives, such as:
Revisiting Battlefields Program — Provides
air travel for War Veterans during the annual Victory Day celebrations in May.
Miles of Charity Program — A joint project
between Aeroflot and Podari Zhizn (Grant
a Life) Foundation, which allows frequent
flyers to donate their bonus miles to seriously ill children.
Medical Transportation — Provides regular
assistance in transportation of gravely ill
children to overseas medical institutions
for treatment that is not locally available.
Train of Hope — A national charity for
orphans that provides free air transportation for prospective adoptive parents.
Russia’s Ministry for Extraordinary
Situations (EMERCOM) — Aeroflot works
closely with the Russian government
to provide aid and evacuation services
to people affected by conflict or natural
disasters.
In a recent interview with Ascend, Vitaly
Saveliev, who assumed the position of
Aeroflot’s chief executive officer in 2009,
discusses his role as the airline’s leader and
some of the strategies behind its success.
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ASCEND I PROFILE
Question: What major changes have you
made on behalf of the airline, its employees
and its passengers since being named CEO
in 2009?
Answer: Since I became CEO in 2009,
Aeroflot has accelerated its fleet-renewal
program, thus making its fleet the youngest
in Europe. In 2011, we announced orders for
16 Boeing 777s, with deliveries beginning in
February 2013. Since June 2011, Aeroflot has
been phasing in the Sukhoi SuperJet-100, a
new-generation, Russian-built aircraft. The
company has placed strong emphasis on
improving the quality of the customer experience, at every point of contact, the results of
which have on many occasions been observed
by both Russian and European experts. The
company’s website (www.aeroflot.ru) has
been updated, which has increased the traffic
four-fold and led to a dramatic growth in the
number of tickets sold via the site. The active
introduction of new technologies has helped
increase sales and decrease expenditures and
generally optimize efficiency.
Q: You have held a number of executive roles in various industries. What
brought you to the airline industry?
A: The airline business has high visibility among
customers and investors. I was attracted by
the opportunity to turn Aeroflot into a globally
competitive carrier. Aeroflot is not just a big
company per se. It is an enterprise vital for
Russia and its economic, social and industrial
development. The well-being of the industry
and the entire economy depends on how
well Aeroflot operates. Air transport is socially
important for Russia, and we understand the
importance of accessibility of transportation
services for the citizens of Russia irrespective
of the regions in which they reside.
Q: Aeroflot is a well-known, powerful brand
in Russia and around the world. What are
some of the airline’s attributes that have supported a strong, long-lasting brand?
A: In Soviet times, Aeroflot was a global
brand, a testimony of national power. Then
the turmoil of change resulted in Aeroflot
breaking up into hundreds of small airlines,
losing its influence and shrinking its footprint.
Now we have left that stage behind. The
company has regained a leadership position
both on the Russian market and on traffic
flows to and from Russia. Today, Russia is
reclaiming its place in the rapidly changing
world and so is its national carrier, which has
become a strong brand of the new Russia, as
a result of our focus on flight safety, technical
and operational excellence, and high-quality
onboard service. An acknowledged leader in
brands evaluation, British Brand Finance, evaluated Aeroflot’s brand at more than US$1.4
billion with substantial growth potential and
placing the company within the world’s top
20 aviation brands. Taking pride in bearing the
name of one of the oldest airlines in the world,
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we consistently enrich our brand with new
essence. Today, Aeroflot is a fine example
of a modern Russian business with highest
standards.
Q: Aeroflot’s vision is to become a global
network company and a leader among the
world’s major carriers. How will you turn this
vision into a reality?
A: We understood that organic growth
would not allow us to develop the opportunities of the very dynamic Russian market.
That is why Rossiya, Orenair, SAT Airlines
and Vladivostok Avia were integrated into the
Aeroflot Group in November 2011. This represents the first large-scale attempt in Russia
to create an airline holding that can compete
with the grandees of the international aviation
market. It means that the group’s aircraft
fleet is being thoroughly modernized, service
quality and business efficiency is dramatically improving also on a regional level, and
the number of passengers carried by the
regional airlines is expected to rise more than
the market. Russia’s regions will become
much more accessible, population mobility
will increase, and flight safety will reach new
levels. Integration will allow Aeroflot Group to
develop a large-scale aviation holding, which
will be able to compete with the world’s
leading carriers.
Modernized Aircraft Fleet Two years ago, Rossiya, Orenair, SAT Airlines and Vladivostok Avia, were
integrated into the Aeroflot Group. As part of the objective to create an airline holding that could
effectively compete with high-ranking carriers in the international aviation market, Aeroflot’s aircraft fleet
is being completely updated.
ASCEND I PROFILE
Q: According to Aeroflot, quality determines its future. What strategy have you put
in place to enhance the quality of service for
your customers? In what ways has Aeroflot
improved customer service during the last
five years?
A: Aeroflot carefully tracks customer
satisfaction through a number of different
methodologies. One of these is the so-called
Net Promoter Score, a proprietary methodology developed by the renowned consulting
company Bain & Co, which measures the
customer propensity to promote the experience. Aeroflot is the best carrier in Europe,
with a performance that has increased from
44 percent in 2010 to 56 percent in 2012: by
comparison, Lufthansa scored 44 percent and
Air France scored 10 percent.
We regularly submit our standard of services to reviews and comparison run by
IATA (best business-class service in Europe
in 2011/2012), by SkyTeam (best carrier in
check-in and on-board services) and by Romir
Research Holdings, which runs a “secret
passenger program” on 170 service standard
parameters; Aeroflot scores 4.5 out 5.
We have improved the quality of our
in-flight service to passengers. As a result,
Aeroflot’s Pilot Training Facility In 2011, the Aeroflot Aviation School was opened at the Aeroflot
headquarters in Melkisarovo. The non-government educational institution will train and graduate 160
pilots (80 crews) a year. In the future, the training facility will be offered to other airlines (outside of the
Aeroflot Group) for aviation training.
Aeroflot took the second place in the annual
study of the quality of on-board culinary offerings in the long-haul dining category made by
Skyscanner.ru, a popular travel search site.
More than 550 European travellers and
bloggers performed as food critics, analyzing on-board menus of leading European air
carriers. As a result of the 2012 Skyscanner
European Airline Food Awards, Aeroflot was
ranked second in the long-haul dining category
and fifth in the short-haul one, being the only
Russian company in European Top-5 for both
flight categories.
Q: Your employees feed directly into your
customers’ experience. What type of corporate environment have you created to ensure
your employees are aligned with your mission
to help passengers materialize their plans
and dreams — work efficiently, relax with
pleasure, meet with relatives and friends, and
explore new countries and cities?
A: As a major international airline, the
Aeroflot Group is a leading employer providing more than 29,000 jobs in Russia and at
its operations abroad. It remains committed
to investing in its staff and supports a progressive work environment with competitive
salaries and benefit packages.
Q: In what ways have customers participated in helping make improvements to your
airline?
A: I am an active user of Twitter and personally communicate with Aeroflot customers
via this channel. I have more than 27,000 followers and often receive feedback on Twitter.
Recently, several customers requested via
Twitter the opportunity to upgrade at check-in
using their Aeroflot Bonus miles. Aeroflot has
reacted to this request and now offers this
service.
Q: What sets your airline apart from the
competition?
A: The Aeroflot Group entered the global
top 10 and the European top three for its
financial results: we know how difficult it is
to deliver impressive growth and positive
financial results, so I believe we are on the
right track to fulfil our ambitious goals. We
are a modern and dynamically developing
company, which leads in IT innovations and
offers passengers the most modern fleet
in Europe and the best service across the
SkyTeam alliance. Wi-Fi connection is now
available on a larger number of wide-body
aircraft; more flights with mobile connection
are at our customers’ disposal; and an evergrowing number of airports with alternative
check-in options — Internet (including the
mobile version of Aeroflot’s site), cell phone
and through self-service kiosks — are available to our customers.
Q: Aeroflot has achieved several industry firsts, including being the first Russian
air carrier to have successfully passed the
International Operational Safety Audit and
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ASCEND I PROFILE
Sheremetyevo’s State-Of-The-Art Terminal D In 2009, Aeroflot and its partners began flying in
and out of Sheremetyevo’s new Terminal D. To meet passengers’ needs, Aeroflot increased its fleet
and built its own new hub in Moscow. With annual capacity of 12 million passengers, Terminal D is
designed to serve Aeroflot’s flights as well as those of its SkyTeam partners.
become registered as an IOSA operator. Why
was this accomplishment important for your
airline? How has your airline benefited by
becoming an IOSA operator?
A: All of Aeroflot’s aircraft meet the best
international safety standards. Every year
we undergo a routine audit of operating
safety compliance with IATA standards in
the reporting year, and no deficiencies have
been identified with respect to the audit
requirements. That is a unique result for both
Russian and international carriers, confirming
Aeroflot’s position as the safest carrier in
Russia and one of the safest in the world.
We have the biggest flight control center in
Eastern Europe, and 2011 saw the opening of
our own aviation school and situation center.
The IOSA certificate confirms that Aeroflot
employs cutting-edge standards in operational
security management, gives an incentive to
expand international cooperation with leading
air carriers, facilitates entering new markets
Aeroflot Joins SkyTeam Cargo Expanding its SkyTeam membership, Aeroflot joined SkyTeam Cargo
in 2011. The airline’s prime position in the Russian market as well as central hub connecting Europe
to the Middle East and Asia, will enable SkyTeam Cargo to benefit from growing world air cargo traffic
demands.
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and enhances the spectrum of the company’s
services.
Q: You have a long-term strategy in place
through 2025. What are the main components
of this strategy? In what ways will Aeroflot be
different in 2025 compared to today?
A: We want to see Aeroflot Group among
the five top European leaders and the 20 top
world leaders by passenger and revenue in
2025, and we want Aeroflot to be a global
network company. We want to be one of the
most successful air carriers in the world, an
agent of aviation sector development and of
Russia’s economic development. The excellent results we achieved in 2012 show that
we have the potential to achieve our objective.
We are committed to unlocking that potential.
Q: As mentioned, Aeroflot plays an active
role in community charities and events. Several
programs focus on orphans and children with
medical issues. Why does your airline place
such a strong emphasis on children? Why is
this level of community involvement important
to the communities you serve?
A: Corporate social responsibility is an
established tradition and an important principle of operation of Aeroflot. Our company
pays special attention to working with underprivileged groups of people. We carry out
our own social programs and participate in
various charity projects. Aeroflot was the first
Russian airline to introduce free tickets for the
veterans of the Great Patriotic War during the
celebrations of Victory Day. Aeroflot helps sick
children by providing free seats for them to
transport them to hospitals abroad, and it helps
artists and talented youth. These measures
are taken on a regular basis and are part of our
comprehensive programs.
Q: What is your biggest priority for the next
12 to18 months?
A: Aeroflot has a long-standing tradition of
supporting sports and the Olympic movement. Throughout our history, Aeroflot has
transported our athletes to all major world
competitions and Olympic Games attended
by Soviet and Russian national teams. Aeroflot
is the main partner of the 2014 Sochi Winter
Olympic Games. Many participants and
guests to the 2014 Olympics will get their
first impression of Russia when they board
Aeroflot. To make a good presentation for the
country, Aeroflot has launched a comprehensive preparatory program: we are getting new
airplanes, plan to increase the number of
regular flights to Sochi and operate direct
flights from Sochi to Europe. With the national
specifics of the Olympic participants and
guests in mind, we are launching special
training programs, improving the language
skills of our flight attendants. The Sochi
Olympics offer us a unique chance to attract
new foreign customers, and Aeroflot is sure
to benefit from it. a