UTAIR AVIATION The Board of Directors of UTair has approved the Impulse programme, a detailed plan to achieve efficiency improvements and structural optimization in 2014 and 2015 in order to secure the airline's continued success in a negative economic environment.
During his speech at the Board of Directors meeting UTair CEO Andrey Martirosov commented: "The negative trend in key economic indicators leads us to forecast a negative outlook for demand in the medium term. Analysts have already observed a significant decline in index numbers among Russian passenger airlines. Amid a static situation in absolute terms in the first half of 2014, the average tariff declined, and one of key industry ratios - Revenue per Available Seat-Kilometer - also diminished. The YoY percentage change reached double digits in Q2 2014".
Reacting to market changes in due time, UTair Group has begun the implementation of Impulse, an efficiency improvement and corporate structure optimization programme.
The programme includes a series of measures for optimization of the route network and MRO, reduction of passenger service times and automatization of planning processes and MRO activities. Significant resources will be dedicated to improving efficiency of existing distribution channels and introduction of new distribution capabilities (NDC). The company will focus on the budget travel segment.
Andrey Martirosov described Impulse as a result of an analysis of best aviation industry practices, such as the SCORE programme successfully implemented by Lufthansa with the objective to increase profits by €1.5 billion by 2015, the TRANSFORM programme implemented by KLM/AIR FRANCE and similar programmes developed by Delta Airlines and other US companies. Impulse will affect every major UTair department. The reforms will start from the top. Immediate measures include reductions of 30% in the numbers of Deputy CEOs and management overall and termination of personal company cars. A number of group affiliates and subsidiaries, particularly MRO companies and representative offices and companies not involved in primary business will be either liquidated or restructured.
Estimated operational savings from implementation of the Impulse programme amount to 5 billion rubles per year.
UTair Aviation is the core enterprise of UTair Group consisting of companies performing aircraft operations with fixed wing and rotary wing aircraft as well as enterprises offering MRO, personnel training, flight services and air transportation sales services. The Group includes UTair-Express, UTair-Ukraine, UTair CJSC, UTair-Helicopter services , Turuhan Airlines, Vostok Airlines, Helisur, UTair Europe, UTair South Africa, and UTair India as well as UTair-Technik, UTair-Engineering, Ural aviation services, UTG, UTair-Armenia and other enterprises. UTair Group headquarters are located in Surgut, Tyumen, Khanty-Mansisk, Moscow and other places in Russia and abroad.
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