Olga Pleshakova, CEO Transaero Airlines, spoke about the airline’s current operations and its plans for the summer flight season in the recent live broadcast on RBC TV, Russia’s TV business channel.

According to Transaero CEO, the government’s measures of support to Transaero Airlines were timely and efficient. Indeed, the airline had to face cash deficit resulting from the overall macroeconomic situation, foreign exchange rate fluctuations, base rate changes, as well as the fact that a number of banks revised terms of the previously granted loans amid the decreasing consumer demand. This deficit was subsequently covered by the commercial loan, which was granted to Transaero Airlines by VTB Bank under the state guarantees on commercial, general market terms. These state guarantees were provided following the thorough study carried out by the government on the real potential of Russia’s second largest airline and its business efficiency enhancement programme. “If the government had not appreciated the significance of Transaero Airlines, its role as a backbone company in the economy, and had not been certain of its economic model and business optimization model, it would have never assumed such a responsibility, as the issuance of government guarantees ,” – said Olga Pleshakova.

However, Transaero Airlines CEO believes that targeted measures towards the backbone carriers should be combined with general industry support measures. Providing Transaero with the state guarantees is an example of targeted measures, which take into account the company’s significance and its individual features. At present, the airline is in talks with VTB Bank on arranging the syndicated loan, said Olga Pleshakova.

As to the serious industry support measures, they may include the reduction of VAT rate on domestic flights. This measure is of particular importance as it will allow preventing ticket price growth, as well as will have a positive impact on sustainability of all the airlines. “We estimate that Transaero Airlines will be able to save about two billion rubles from the implementation of this measure,” – said Olga Pleshakova.

CEO of Transaero Airlines noted that the development of domestic routes and flights to the resorts in the south of Russia has become a top trend. "Last year we carried aboutљ 775,000 passengers on these routes, however, this year we expect passenger traffic on these routes to increase by 150% ", – she said. The airline will use its aircraft with the highest passenger capacity, i.e. Boeing 747 and Boeing 777 aircraft, on flights to the south of Russia.

Olga Pleshakova highlighted that the development of domestic services does not mean that international services are drying out. The positive trends are observed on a number of international routes to leisure destinations. “For example, in the first three months of 2015 passenger traffic from Moscow and other Russian regions to Egypt has nearly doubled,” – she said.

The first quarter of 2015 was marked with an increase up to 75% in the share of the airline’s own sales in the overall sale structure. The positive trend has been seen regarding the sale pattern as well. “In April we will sell tickets for July and August ," – said Olga Pleshakova.

This year international traffic will continue to dominate in the airline’s operations. The shares of the airline’s passenger traffic on the international and domestic routes will be 60 % and 40% correspondently. In 2015 Transaero Airlines has already launched new services on highly demanded routes, including the Moscow-Delhi and Moscow-Prague routes. The company is actively developing transit transportations from Asia via Moscow to Europe and North America. According to Olga Pleshakova, now this transit flow is almost thrice bigger over the same period of the previous year.

Thanks to an efficient route network, the prospects for international air service market looks quite reasonable. “We hope to reach the traffic volumes no less than in 2014,” – said CEO of Transaero Airlines.