UTair (UT, Khanty-Mansiysk) management has approved the implementation of a two-year programme - Impulse - aimed at saving RUB5billion (USD141.1million). In a statement, the carrier said Impulse will run from now until 2015 and will streamline its operations and efficiency in a bid to ensure UTair remains a viable operation.
With Russia having been slapped with hard-hitting economic sanctions by the European Union, the United States and Japan, over its alleged involvement in the downing of Malaysia Airlines (MH, Kuala Lumpur International) flight MH17 last month, airline managing director, Andrei Martirosov, said Russia's economic indicators predicted a decline in passenger demand in the medium term.
"Even today, experts have noted a significant decline in the calibre of Russian airlines' business passenger traffic. Compared to the growth indicators of the first half of 2014, average tariffs fell seriously as shown by a drop in Revenue Per Available Seat-Kilometers (RASK) performed," he said.
Among the first cuts to be undertaken are a 30% reduction in managerial staff. Thereafter, other measures will include network rationalization, the reduction in aircraft turnaround times, as well as the automation of aircraft MRO requirements.
In terms of its current sales strategy, Martirosov said the airline will shift focus towards the budget market while improving the effectiveness of its existing sales channels.
