- •How political connections of russian transportation firms influence their international activities
- •Introduction
- •Improvement of fiscal policy in transport is carried out in the following areas:
- •Companies’ analysis rzd Russian Railways
- •Internationalization3:
- •Transneft
- •Aeroflot
- •Internationalization:
- •Freight 1
- •Internationalization:
- •Transaero
- •Internationalization:
- •N Trans Group
- •Internationalization:
- •Moscow Metro
- •Internationalization:
- •TransOil
- •Internationalization:
- •Internationalization:
- •Internationalization of cargo and passenger transportation:
- •Volga-Dnepr Group
- •Internationalization:
- •S7 Airlines
- •Internationalization:
- •Federal State Unitary Enterprise State atm Corporation
- •Internationalization:
- •Sovkomflot
- •Internationalization:
- •Mosgortrans
- •Internationalization:
- •Internationalization:
- •Caspian Pipeline Consortium
- •Internationalization:
- •Central Suburban Passenger Company
- •Internationalization:
- •Sovfracht-sovmortrans
- •Internationalization:
- •Independent Transportation Company
- •Internationalization:
- •Isr Trans
- •Internationalization:
- •Mostransavto
- •Internationalization:
- •Ural Airlines
- •Internationalization:
- •St Petersburg Metro
- •Internationalization:
- •Eurosib
- •Internationalization:
- •Conclusion
S7 Airlines
State influence:
The airline has the widest domestic route network in Russia, created on the basis of two air transport hubs at Moscow (Domodedovo) and Novosibirsk (Tolmachevo). It also has regular flights to the countries of the CIS, Europe, the Near East, South-East Asia and to countries in the Asia-Pacific region22.
The S7 Group of Companies incorporates S7 Airlines, Globus Airlines, international tour operator S7 Tour, and the retail chain for the sale of tickets and tour packages S7 Ticket, among others.
The state airline "Siberia" (or as it now is called S7 airlines) was created in early 1992 on the basis of United Air Tolmachevo (Novosibirsk), but it was privatized in 1994. So now it is a private company, and state doesn’t interfere more than in the activities of other private air companies.
Internationalization:
Country |
Offices and representatives in Armenia, Azerbaijan, Belarus, Bulgaria, China, Georgia, Germany, Italy, Kazakhstan, Kyrgyzstan, Moldova, Spain, Tajikistan, Thailand, Turkmenistan, UAE, Ukraine, Uzbekistan |
Year of entry |
NA |
Industry/ business area |
Passenger air flights |
Entry mode |
Partnerships, agreements (code sharing ones, others) |
Motives |
Other general motives were the “pull” ones, i.e. growth opportunities: · To increase sales · To increase market share of the firm |
Firm specific advantages used on the foreign market |
S7 Airlines has one of the youngest and most modern fleets in the Russian air carriage market. It also constantly innovates and adopts best world practices. For example, it was among the very first Russian airlines to offer online check-in, on-line boarding passes, etc. |
First mover or follower |
Follower |
Type of state involvement in the process of internationalization |
Regulation only, like with other private airlines |
Evaluation of the success of the internationalization |
Successful. S7 Airlines is a member of the oneworld global alliance, world leader in providing quality service to air passengers. Since 2001 S7 Airlines has been a full-fledged member of the International Air Transport Association (IATA). In 2003 S7 Airlines became the first ever Russian civil aviation winner of a Flight International Aerospace Award. In 2007, after a successful operational safety audit, the airline was included in the IOSA (IATA Operational Safety Audit) register of operators. |
Federal State Unitary Enterprise State atm Corporation
State influence:
Federal State Unitary Enterprise "State ATM Corporation" was established by the Government Decree to ensure safety and regularity of civil aviation flights and create the uniform economic management of ATM systems23.
The Federal State Unitary Enterprise “State ATM Corporation” (State ATM Corporation) is the air navigation service provider (ANSP) of the Russian Federation responsible for airspace of more than 26 million km2 over the sovereign territory and the high seas and 250 civil controlled aerodromes24.