Q Who manages Aeroflot?
As it became known to Kommersant, the government has begun substantive discussions of plans for the resuscitation of the production of long-range Il-96-400M aircraft. In the near future, the ministries should prepare a schedule for the decommissioning of foreign aircraft and develop a plan for their replacement with Russian ones. But the state has been offered to actually take on the burden of buying the first six aircraft from the manufacturer, which will require over 40 billion rubles. For this money, apparently, a struggle will unfold between the leasing IFC and STLC. But officials are clearly not sure that they will be able to solve the main problem of the Il-96 - fuel inefficiency, and the ministries are already proposing to attract jet fuel stocks from the Rosrezerv for this.
A Kommersant source close to Aeroflot said that by 2025, all 22 Airbus 330s and four out of 15 Boeing 777s will leave the company's fleet, but the company " does not plan to replace retired vessels"Il-96-400M. Kommersant's source explains this by the insufficient number of aircraft, since "a limited series is planned for production, taking into account the priority of deliveries to government agencies." Aeroflot has contracts for new aircraft, due to them, the replacement of retired aircraft from 2019 will be ensured.
Firstly, for some reason no one discusses the question - why didn't Aeroflot order new IL-96s for itself earlier? They decommissioned the old ones, so why didn't they buy new ones? They didn’t like something in operation there - so why didn’t they put questions to the manufacturer? Aren't both Aeroflot and UAC Russian state corporations?
Secondly, all these stories about “low fuel efficiency” are obvious nonsense, since profitability is a relative concept:
ROI=CF/I, where CF is the cash flow, I is the amount of investment, i.e. aircraft price.
Well, due to the “low fuel efficiency”, the cash flow from the IL-96 aircraft will be lower than that of the foreign counterpart (I don’t know how much lower, but for some reason I think that the fuel component is not so critical, otherwise why is Cuba still operating them? ). But the price of our aircraft, including after the devaluation, is several times lower! This means that profitability goes up, especially in comparison with new Western counterparts.
These simple calculations can be carried out by the government, why doesn't it? We are shaking the air, talking some nonsense about “reserves of aviation fuel from the Federal Reserve”, instead of just netting and counting.
And this also applies to TU-204, TU-214 - the same approach.
Third, tell me, can Putin remove the president of Aeroflot? And also all the top managers? Replacing them with substitutes. Of course it can.
So why doesn't he do it? They should be withdrawn, for example, for fraud with dividends last year. And better - for the destruction of the Russian aviation industry, so that others would be discouraged.
Why doesn't he do it?
I have only one answer - he does not deal with the economy at all, leaving everything to the government. Well, then it's time to get busy, we need to look at the management of state corporations through the prism of all state policy, for example, in Russia, the production of large-diameter pipes was created - and this is very good. So why did we kill the aviation industry at the same time?
And if with Aeroflot simple administrative measures are enough, then for the rest of the airlines one thing is enough - to ban the operation of old aircraft and that's all, the market itself will deploy them in the direction of domestic production.
May 30, 21:49 Aeroflot transported half of the Russian passengers and went into a heavy loss Aeroflot announced its results for the first three months of the year under IFRS. Due to low demand and an increase in jet fuel costs by 28%, the loss of the air carrier amounted to almost ₽16 billion
May 27, 12:43
Dividend cut-off period: what is it and how can it affect stocks
To what extent is the Moscow Exchange index able to decline after the closing of dividend registers? What companies may be of interest to an investor at this time? These and other questions were discussed by experts on the air of RBC-TV
May 27, 06:51
US GDP and Aeroflot report. What should investors prepare for this week?
Next week, the US will report on the growth of its gross domestic product, and Russia - on foreign trade. Financial statements will be published by LUKOIL, Aeroflot and other companies. This may affect stocks and prices
May 07, 14:50
How plane crashes affect airline stocks
How do carrier shares behave in the event of an accident? How often does the value fall and how quickly can it rise again? What to expect from the papers of Aeroflot after the tragedy at Sheremetyevo? The editors of RBC Quote learned from analysts
May 06, 11:14
Aeroflot shares fell after the plane crash at Sheremetyevo
At the exchange trading on Monday, May 6, Aeroflot shares went down. Quotes of the Russian airline lost 3% after a fire in the Sukhoi Superjet 100 aircraft at Sheremetyevo airport
AFLT ₽125 (+25.68%) Forecast 11 Mar 2020 Go to date Aton Analyst 55% Reliability of forecasts Aeroflot will introduce a no-baggage fare on several routes from April 2. According to experts, in this way the company's management is looking for new ideas for growth. The company's shares will rise in price by 25%, predicted in Aton
Mar 04, 21:06
Results of the day: the Moscow exchange index went down despite the growth of Aeroflot and LUKOIL
On a day when Dow Jones, NASDAQ and Asian markets are actively growing, the Moscow Exchange index went into negative territory. The Russian market was not helped either by large trading volumes or by LUKOIL's reporting with Aeroflot
20 Dec 2018, 18:36 Oil is getting cheaper. You can earn money on this if you invest in Aeroflot AFLT ₽112 (+9.78%) Forecast 19 Mar 2019 Go to date BCS Analyst 43% Reliability of forecasts BCS Broker expert Sergei Gaivoronsky believes that buying Aeroflot shares is the best way to win back the current drop in oil. He offers to buy securities for a short period of three months and earn more than 8%
Nov 30, 2018, 08:27
Aeroflot's profit fell by 17%. Stocks started to go down
The net profit of the Russian airline decreased by 17%. Even the growth in passenger traffic and revenue, which almost reached half a trillion rubles, did not help Aeroflot. Stocks went down
13 Nov 2018, 17:10₽55 billion will lose Aeroflot due to rising fuel prices and devaluation of the ruble Rising fuel prices and devaluation of the ruble could lead to Aeroflot's losses of 55 billion rubles. at the end of the year, said the head of the company Vitaly Savelyev. Despite the apparent negative of this statement, stocks do not react
AFLT ₽111 (+8.4%) Forecast 02 Nov 2019 Go to date Renaissance Capital Analyst 42%
The Aeroflot carrier appeared already in 1923. During its existence, a large-scale work has been done aimed at improving the quality of services provided. Today it is one of the world's most successful airlines, with many subsidiaries that operate both domestic and international flights.
Major subsidiaries
Aeroflot has a significant number of subsidiaries operating at the same high level as the founder. Among the largest and most famous of them, there are several pieces. The list of Aeroflot subsidiaries is as follows:
Despite the fact that Aeroflot's subsidiaries work in different directions, the founder controls the quality of the services provided.
Other subsidiaries
In conclusion, it should be noted that among the subsidiaries of Aeroflot there are several other organizations that do not carry out air transportation activities. These include:
- A-Technics LLC- carries out repairs and maintenance of the company's liners, and is located at the Moscow airport "Vnukovo".
- LLC Aeroflot-Finance engages in commercial activities related to the operation of the parent airline.
- Private educational professional institution "Aeroflot Aviation School"- has been training aviation specialists in various fields for more than 40 years. The company's office is located in Moscow.
The activities of each of these organizations are controlled by Aeroflot and carried out on behalf of the parent company.
The largest airline in the Russian Federation, the most famous air carrier for Russians is Aeroflot. The company carries at least 10 million passengers every year. The impressive and modern air fleet of the company has more than 167 aircraft. This is not only a domestic carrier, but also an international one. Aircraft of this airline fly to 122 airports around the world.
Aeroflot in facts
The company is one of the largest air carriers in Europe and has the youngest air fleet in Europe. The technical equipment is impressive. Modern centers for the training of flight personnel, centers for training new civil aviation pilots, own situational centers and passenger support services.
The speed of technological re-equipment of the company with the latest models is 20% ahead of the pace of creating air infrastructure in Russia. The company creates its own infrastructure for training and training of personnel, including abroad. In 2011, its own aviation school was opened, which graduates and employs more than 160 a year. Aeroflot has at its disposal the largest and unparalleled in Europe
Aeroflot shares are a profitable and promising investment today. They give the right to receive dividends and shares in the capital of the airline. In addition, you can take advantage of the volatility of the securities market and sell shares at a higher price.
Aeroflot has no direct competitors in Russia and is the most successful domestic airline.
History of a great company
The history of Aeroflot is impressive and raises many interesting questions, which are very difficult to find answers to. Aeroflot looks like a private airline, but it's not really. This is one of the oldest airlines in the world. Aeroflot was founded back in 1923, but the name was different. "Dobrolet" - this was the name of this giant in the air transportation market. Only in 1932 the company received its famous name. Who owns Aeroflot? To the people! That is how any citizen of the USSR would answer.
Until 1991, Aeroflot was a monopoly in the USSR and was the only airline. The company covered not only domestic and international passenger traffic. She also performed military functions. In addition, it was the Air Fleet of the company did not depend on foreign manufacturers, because it was entirely supported by the state. Aeroflot shares have always been relevant, even after the collapse of the USSR.
The collapse of the state did not bode well for the company. In order to remain competitive in the new world, the company did some serious image work in the 2000s. Changed corporate colors, aircraft painting, staff uniforms and even the approach to business. However, if it were not for the support of the Russian government, it is not known whether the company could have survived difficult times.
Air Fleet
Aeroflot has the largest civil air fleet. The company's policy is that the aircraft do not stay in the fleet for a long time. Old aircraft are sold to other airlines and replaced by younger ones. There are so many aircraft in the company's fleet that all popular models of foreign manufacturers are present there.
Very pleasant is the fact that the company supports the domestic manufacturer. The fleet of domestic aircraft is equipped with new "Super Jets" of domestic production. Very soon the company's fleet will be replenished with the most modern civil liners in the world - MS21.
Who owns Aeroflot?
In the modern world, information noise is a common thing. The information is not always true. Serious damage to the company's image was brought by rumors that it was no longer a domestic air carrier. These rumors still had some basis. The fact is that civil aviation pilot training is a long and resource-intensive process. Graduate pilots, although they have enough experience to work in the company, are not qualified enough to be commanders. In order to correct the shortage of ship commanders, Aeroflot began to hire foreign civil aviation pilots for this position.
Who owns Aeroflot? An exact answer cannot be given. Aeroflot is a public joint stock company. Everyone can invest their own financial resources in the shares of the company. Shares give their holder the right to a share in the company. Accordingly, the larger the share, the more rights to the company.
The controlling block of shares belongs directly to the founder of Aeroflot, namely the government of the Russian Federation. The controlling stake is 51%, which allows the company to be virtually state-owned. All rumors about ownership of a controlling stake by a foreign legal entity are nothing more than just rumors.
Despite the objective figures, not everyone is ready to believe in the only truth. The last 49% of the shares can be owned by anyone, especially foreign legal entities or individuals. This has long been a stumbling block and a tool in the political struggle of various factions. Disputes about who owns Aeroflot are ongoing even today. However, according to statistics, Russian citizens and companies own more than 35% of the remaining shares.
CEO
Since 2009, the post of General Director of Aeroflot has been occupied by Vitaly Gennadievich Savelyev. The first 5 years in this position and the new company policy proved to be very fruitful. Vitaly Gennadievich was appointed to the post again.
