S7 Airlines - History

History

Siberia Airlines was established in May 1992, in Novosibirsk, Russia. The Aeroflot Tolmachevo United Avia Squadron (Russian: Толмачевский объединенный авиаотряд) dates back to 12 July 1957 when it accomplished the first flight from Moscow to Novosibirsk. Sibir Airlines was formed around this air squadron. Since 2005 Sibir flies under the S7 Airlines brand. The first international flight was in 1991 to Harbin, PR China.

In 1994, the airline joined IATA. Also in 1994, the company became an open joint stock company and started its first international route (as Sibir Airlines) from Novosibirsk to Frankfurt, Germany.

In the first half of the 1990s, Siberia Airlines was a medium-sized regional airline, like many others created from former Aeroflot divisions. Operations were mainly focused on domestic flights from Novosibirsk.

Siberia Airlines has grown mainly through a series of mergers with smaller regional airlines. In 1999, it opened its Moscow branch at Vnukovo Airport. The charter flights program from Moscow Sheremetyevo International Airport followed in 2000.

In 2001, the airline acquired one of the major Moscow-market players, Vnukovo Airlines based at Vnukovo Airport.

Since 2002, all Moscow flights have been operated from Domodedovo International Airport, the biggest hub of the company. The company initiated a close partnership with Armavia, acquiring 70% of that company's shares by 2005. Sibir Airlines' crews operated Armavia Airbus A320s on flights from Yerevan, Armenia to Moscow and Novosibirsk.

In 2004, the airline absorbed Chelyabinsk Airlines.

In March 2005, Siberia Airlines rolled out its new livery featuring a marketing strategy focusing on the brand name "S7", its two-letter IATA code designator. Both the branding and livery were created by London-based brand consultancy firm Landor Associates. The airline also embarked on an advertising campaign, also with Landor Associates, using the slogan "Свобода выбирать" (Freedom to Choose).

In the aftermath of the S7 Airlines Flight 778 air crash at Irkutsk in July 2006, it was reported that the Russian Government's 25.5% stake in the airline may be passed to Aeroflot Russian Airlines, as part of a consolidation programme within the Russian aviation industry. It is claimed that the above crash may speed up this process.

In December 2006, the airline became the second Russian air carrier to complete, and pass, the IATA International Safety Audit (IOSA), which is the first global air safety standard. On 27 September 2007, OAO Sibir Airlines /S7 Airlines/ received an official notice of IATA when the carrier was entered in the register of operators IOSA.

It was announced in April 2007 that a new division had been set up within the airline, called Globus. This division was to focus on charter flights for tourists to foreign holiday destinations. Initially, the aircraft for this division would be used from within the mainstream fleet, but during 2010-2014, 10 Boeing 737-800 aircraft were to be leased with an all-economy layout, followed by an option for a further 10 more after this period.

On 29 May 2007, the airline announced a proposed order for 15 Boeing 787 Dreamliner scheduled for delivery in 2014, with an option for 10 additional aircraft. However, the order was officially canceled on 29 January 2009, with S7 stating that it is considering the possibility of taking the aircraft under a leasing scheme.

S7 Airlines ranked second in the Russian international market and first in the domestic market. The airline carried 5.6 million passengers in 2009, including 3.5 million passengers on flights within Russia.