Annual Report 2015

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Sales

Aeroflot Group sells tickets through a variety of domestic and international channels, including the official Aeroflot website where passenger may buy tickets both for the airline's flights and the flights of its subsidiaries. To ensure a single online offering subsidiary websites have been deeplinked with Aeroflot airline's platform for online sales. Pobeda airline sells tickets independently through their website or online booking systems.

In 2015, the Group continued to streamline the structure and efficiency of its ticket sales. Agents accounted for the largest share in sales (67.1%) while Internet sales were 24.0%, and sales offices and the call centre accounted for 7.5% and 1.4%, respectively.
Breakdown of Aeroflot Group revenue
Aeroflot Group sales by channel

Domestic Sales

63.3 %
Moscow's share of total sales in Russia

The highest sales in Russia are generated in Moscow (63.3% of total sales in 2015), St Petersburg, and the cities of the Russian Far East.

Sales are effected through authorised agents (under direct agency agreements), neutral booking systems (Transport Clearing House (TCH) and BSP Russia), sales offices, Aeroflot airline's website, and the call centre.

In the reporting year, the share of neutral booking systems (TCH / BSP Russia) increased from 57.1 to 64.4% and sales offices from 11.0 to 11,5%, while sales through agents decreased from 31.9 to 24.1% respectively.

The Company continued to work on improving efficiency and sales structure, including the resolution to introduce a minimum sales threshold for authorised agents enabling them to retain direct agency agreements with the airline. This initiative will help shift sales through agents to neutral booking systems and streamline internal operations at PJSC Aeroflot.

Additionally, in 2015, Aeroflot airline changed its incentive programme for agents in Russia, supporting the growth of sales through agents in a changing market environment. To stimulate sales and improve agent loyalty, Aeroflot airline also supported promotion campaigns, organised familiarisation and invitation tours for sales agents, and carried out joint marketing campaigns.

64.4 %
share of sales through neutral booking systems
Breakdown of Aeroflot Group revenue
from domestic sales by channel
Breakdown of Aeroflot Group revenue from domestic sales

Breakdown of Aeroflot Group revenue from domestic sales (excluding Moscow)

International Sales

36.0 %
Western Europe's share of international sales

In the reporting year, the highest international sales were generated in Western Europe — 36.0%. The Group continued its expansion into Southeast Asian markets, driven, among other things, by shifts of tourism flows towards resorts of Thailand, Vietnam, and India, as well as by the growth in connecting flights between Asia and Europe. This region's sales went up to 27.4%.

International sales are effected through the network of independent IATA agents within BSP and ARC settlement systems, authorised agents (under direct agency agreements), corporate customers (under direct agreements with the Company), sales offices, Aeroflot airline's website, and the call centre.

In the reporting year, most sales were effected through BSP/ARC channels — their share accounted for 83.6%. Sales through authorised agents totalled 8.5%, and sales through own offices accounted for 7.9%.

Throughout the year, Aeroflot airline concentrated its effort on strengthening relations with the international agency network by optimising agency terms, offering special rates to sales agents, and leading joint marketing campaigns.

Breakdown of Aeroflot Group revenue from international sales in 2015
International sales
of Aeroflot Group by channel

Note: In this section of the Annual Report the Group's sales include revenue of Aeroflot airline and subsidiaries under 100% commercial management.