Fleet Development Strategy

Aeroflot Group operates a balanced in terms of aircraft types and modifications fleet and keeps on enhancing it in line with its multi-brand strategy. Over the last years, the Group has invested much effort in optimisation and upgrade of the fleet to improve the efficiency of the Group’s operations and cost control. In 2012–2016, the types of aircraft in operation reduced from 14 to 8.

As a result of active fleet upgrades from 2012 to 2016, the average age of aircraft in operation dropped from 8.8 to 6.5 years for Aeroflot Group and from 5.2 to 4.2 years for Aeroflot airline (as at the year-end). Aeroflot airline’s fleet is one of the youngest in the world.

Aeroflot Group’s aircraft fleet was built and is grown in line with specific business models and route networks of each airline.

^{Note. Data exclude aircraft that were out of operation by the Group’s airlines and/or subleased to third parties (Mi-8, Yak-40, Tu-154 in 2012; An-148 and An-24 in 2016).}

Aeroflot airline’s fleet comprises several types of aircraft produced by major manufacturers and focuses on addressing the needs of both the premium and mass-market segments. Aircraft offer two to three travel classes to serve passengers in flight.

Rossiya airline operates Airbus and Boeing narrowbody aircraft primarily on scheduled routes, while its Boeing wide-body aircraft are operated primarily on leisure markets (to destinations served by the charter programme and resorts of the Black Sea) and flights to the cities in the Far East.

Aurora airline operates Airbus A319 narrow-body aircraft on scheduled routes and turboprops for local flights.

The aircraft fleet of the low-cost carrier Pobeda comprises one aircraft type, Boeing 737-800, with a single-class cabin configuration.

Aeroflot Group’s Aircraft Fleet

As at 31 December 2016, Aeroflot Group had 292 aircraft: 50 regional aircraft (including Bombardier DHC-8 and Viking DHC-6 turboprops, SSJ100 jets, as well as An-148 and An-24 aircraft that were out of operation and subleased), 192 narrow-body aircraft for mediumhaul flights (Airbus А320 Family and Boeing 737 Family), and 50 wide-body long-haul aircraft (Airbus А330s, Boeing 767s and Boeing 777s).

In 2016, following the active route network expansion and the launch of new routes and flights, the Group focused on expanding its aircraft fleet. During the year, 53 aircraft were added to the Group’s fleet. The Group together with lessors conducted pre-delivery checks in order to phase-in 12 aircraft previously operated by Transaero (seven Boeing 747 and five Boeing 777 aircraft), and also phased in five Airbus A321s ordered by Transaero. Following expiry of the lease period in 2016 and in line with the Group’s fleet optimisation, 23 airliners were phased out. Thus, in 2016, the net increase in Aeroflot Group’s fleet amounted to 30 aircraft.

^{1 Including subleased aircraft. Note. As at 31 December 2016, six An-148s, one An-24, two DHC 8-Q402 and one Boeing 737 were out of operation. More information please find at page 202.}

Aeroflot Airline’s Aircraft Fleet

As at 31 December 2016, Aeroflot airline had 189 aircraft including 30 regional narrow-body aircraft, 122 narrow-body medium-haul aircraft, and 37 widebody aircraft.

In 2016, the Company’s fleet was expanded to include new SSJ100, Airbus A320, Airbus A321, Boeing 737-800, and Boeing 777-300ER aircraft. Airbus A319 aircraft were phased out. The net fleet increase amounted to 19 aircraft.

^{Note. DHC 8-400 regional aircraft were purchased in 2015 and recorded as an asset of PJSC Aeroflot prior to being transferred to Aurora airline in 2016.}

Subsidiaries’ Aircraft Fleet

Subsidiaries’ aircraft fleet composition was transformed as a result of the set-up of the united regional carrier Rossiya Airlines and the arrival of ex-Transaero aircraft from leasing companies. Aurora airline continued to enhance its fleet to operate local flights. Pobeda airline’s fleet remained unchanged.

^{Note. For data comparability purposes, Rossiya airline’s fleet in 2015 also includes the aircraft of Donavia and Orenair airlines. Six aircraft owned by Rossiya were out of operation and were (are being) leased out.}

Flight Hours

Despite the dramatic fleet expansion (+30 aircraft), Aeroflot Group throughout the year maintained high fleet utilisation rates. In 2016, Aeroflot Group’s flight hours increased by 6.1% y-o-y to 911.8 thousand hours. Aeroflot airline posted a 7.5% increase in flight hours to 639.5 thousand following the expansion of its operations.

In 2016, Aeroflot Group’s flight hours per aircraft in operation per day averaged 9.4, down 1.1% y-o-y. Immaterial decline was driven by substantial fleet enhancement in 2H 2016, which requires certain time to ramp-up utilisation. Aeroflot airline’s average flight hours per aircraft in operation per day was 9.9 hours and was affected by increased share of narrow-body aircraft.

Fuel Efficiency

High fuel efficiency is an important benefit of the young aircraft fleet. Fuel costs account for a major part of an airline’s expenses. Their share in Aeroflot Group’s 2016 operating costs amounted to 23.5%. New airliners feature various technical solutions, which enable a reduction in fuel and other operating costs, including optimisation of maintenance costs.

Specifically, since 2014 Aeroflot has been operating the most advanced Airbus A320 family aircraft equipped with sharklets that reduce lift-induced drag and improve aero-dynamics at the wingtips. As a result aircraft deliver a 3%–4% reduction in fuel consumption (according to Airbus), increased flight range, and improved takeoff performance. As at the end of 2016, 38 aircraft in the Group’s fleet were equipped with sharklets.

Operating a young aircraft fleet also helps reduce the environmental footprint and slash harmful CO2 and NOx emissions to the atmosphere. For more details on the fleet fuel efficiency see the Environmental Impact and Performance section.

In 2016, specific fuel consumption across Aeroflot Group decreased by 18.1 grammes (or 5.9%) y-o-y to 286.4 grammes per tonne-kilometre (TKM). Specific fuel consumption at Aeroflot airline decreased by 12.9 grammes (or 4.3%) to 286.3 g/TKM. Moderate improvement is also posted on a gramme per available seat-kilometre (ASK) basis.