Russian carrier UTAir has unveiled an ambitious expansion programme that includes a $1.7 billion investment in new aircraft over the next seven years.
UTAir chief financial officer Igor Petrov expects the fast-growing carrier's traffic will more than triple over the next four years to 10 million in 2012, which would give it a 10% share of the Russian domestic market. UTAir carried almost 3 million passengers in 2007 and is on track to carry 3.8 million passengers this year, driven by the launch of 20 mainly domestic routes. Last year the carrier turned a $17 million net profit on $919 million in revenues, but 29% of these revenues and most of the profits were generated by its helicopter operation.
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Igor Petrov, CEO UTAir |
UTAir now operates 200 daily flights to 61 destinations in Russia and to seven neighbouring countries. But with the exception of three Boeing 737-500s and 14 ATR 42s its fleet is made up primarily of ageing Russian aircraft. It plans to aggressively add Western types including 21 ex-Continental Airlines 737-500s by the end of 2009. It is also looking for 15 70- to 90-seat regional jets, 15 aircraft in the 737-800 class and three 200- to 300-seaters.
UTAir is seeking Western financing to fund its expansion and Petrov says its diversified growth potential should be attractive to foreign investors. "We are here to establish relationships with financial institutions and insurance companies," Petrov said during a visit to London in June. "We have had good support from Russian companies, but we are now aiming to become more global."
Source: Airline Business
