S7 Airlines flights have transported five million passengers
Such growth is quite understandable: S7 Airlines develop route network, launch new flights and also actively implements new aircraft. And this will allow S7 Airlines even in the near-term to compensate the inadequacy of line carrying capacity, which currently is the main hindrance to further dynamic growth of the company.
”Every one flying on 14 November 2007, may consider himself or herself a passenger number 5,000,000 of S7. To do a more exact calculation is a very complicated task: on that day planes of S7 Airlines made 125 flights within Russia and to CIS countries as well as further abroad. We congratulate the passenger number 5,000,000 and wish him or her to enjoy new flights with S7 Airlines!” — said Vladislav Filev, general director of OJSC “Sibir Airlines” /S7 Airlines/.
Over 10 months of current year, the air traffic has increased by 13% as compared to the same period of last year and totaled 4,791 thousand passengers. And the passenger traffic has increased by 8% up to 11.69 billion pkm. and S7 aircraft mileage reached 117.4 thousand of hours which is 12 % more than in the same period of 2006. Considerably increased the seating occupancy ratio in the S7 Airlines aircraft - by 3.9 p.p. up to 82.1%.
With regard to the rising trend towards growing traffic volumes in the second half of 2007, the production plan for the current year has been adjusted towards augmentation. According to the forecast of S7 Airlines, the increase in numbers of flown passengers in 2007 will total составит 18% and reach as many as 5,789 thousand passengers while the traffic volume will grow by 13% up to 14.13 billion. pkm.
Financial results of the airline also have demonstrated a steady trend for growth. Revenue of S7 Airlines over 9 months of 2007 has risen year-to-year by 27% and totaled $845 million (without VAT). According to the updated forecast, main financial indicators of the company in 2007 will be as follows: revenue (without VAT) — $1,170 million, EBITDA — $57 million, profitability EBITDA — 4.9%, total debt— $289 million, debt / EBITDA — 5.0 (on Russian Accounting Standards /RAS).
In September 2007, S7 Airlines received official notification IATA on the inclusion of the airline into the list of operators IOSA (IATA Operational Safety Audit) thus becoming the second-largest carrier in Russia to have successfully completed the international audit for compliance to flight operation safety standards. Its inclusion into the list of operators that have passed IOSA, means recognition of S7 Airlines within global aviation community as a safe carrier, which matches the strictest international requirements.
In 2007, году S7 Airlines continued to implement the program for upgrading its aircraft fleet scheduled to run for the next 7 years. Under this program, a number of large-scale contracts were signed with the world’s leading civil aircraft manufacturers such as Boeing and Airbus in order to purchase new planes:
|»||25 Airbus А320, shipment will start in 2009;|
|»||10 Boeing 737-800, shipment will start in 2010;|
|»||15 Boeing 787 Dreamliner, shipment will start in 2014 (the airline will become Russia’s first operators of these state-of-the-art aircraft).|
Also the company signed operational leasing agreements with ILFC to buy 4 new aircraft Airbus А320 (shipment stars in the beginning of 2008) and leasing company Cramington for 9 planes Airbus А319. The first four А319s from this shipment have already arrived at the company and started commercial flights.