Page 113 - RUSRptApr17

people) and 15% (18mn people), respectively. The two companies beat such carriers as Lufthansa, Air France, Turkish Airlines, British Airways, and KLM in 2016. Overall the average passenger turnover of European carriers increased 5.6% year-on-year. In February Aeroflot was pronounced the world's most powerful airline brand , with an 'AAA' brand rating, valuation and strategy consultancy Brand Finance.
Aeroflot, Russia’s flag carrier and largest airline, has been named the No.1 major airline in Europe by users of TripAdvisor , the travel planning and booking site. Aeroflot has also been recognised by TripAdvisor users as Best Business Class [of any airline globally]. The recognitions come as part of the Travellers’ Choice awards for airlines. Award winners were determined using an algorithm that took into account the quantity and quality of airline reviews and ratings submitted by travellers worldwide, over a 12-month period.
Airline passenger traffic in Russia increased by 17.7% year-on-year in March to total 6.9mn passengers , according to a report by the Air Transport Agency. Last year, Aeroflot, which unites the flagship company Aeroflot, and lowcosters Pobeda, Rossiya, and the Far-Eastern Avrora airline, enjoyed a 14.8% year-on-year bump in passenger turnover to 112bn pkm, and passenger traffic adding 10.3% to 43.4mn. In 2017, the company plans to sustain the passenger trafic at 12-14% growth. The bank also sees news about a higher volume of passenger traffic supporting the share price performance of Russian national air carrier Aeroflot. Gazprombank has an Overweight rating on Aeroflot shares, seeing 12% upside to the current share price of RUB163.6 per share.
Russia’s second largest bank VTB Bank sold a 25% stake in St Petersburg’s Pulkovo airport for about $250mn to a consortium of investors headed by the Russian Direct Investment Fund, a $10bn sovereign investment fund. The deal also includes Russia’s largest private equity group Baring Vostok and unnamed investors from Middle East and Asia. The sale of 25% in Pulkovo follows a record-high wave of equity deals seen in Russia since the beginning of 2017. The bank still controls 25.01% in the holding company of the airport, with other investors including Qatar’s sovereign welfare fund, which also teamed up with RDIF to buy a 24.99% stake in the airport for €238m last year from Germany’s Fraport AG that still retains 25%.
RDIF adn a consortium of Middle Eastern investors has requested the approval of the Federal Antimonopoly Service for the purchase of 25% stake in VTB Pulkovo Airport . As a result, VTB’s share will be reduced to 25%. Through a series of transactions consortium led by Russian Direct Investment Fund, will own a 25% stake, Qatar Investment Authority (QIA) - 24,99%, Fraport - 25,01% and VTB - 25%. Earlier the head of RFPI Kirill Dmitriev said that the total amount of funds the consortium of more than $ 200mn, of which about $ 100mn are the funds of Arab investors.
9.2.4 Construction & Real estate corporate news
Russian developer PIK expects a material increase in business after acquiring smaller rival Morton last year : new contract sales at 1.7-1.9mn sqm in 2017 (vs 950k sqm in 2016), cash collections at RUB190-200bn (2016: RUB101bn). 1Q17 operating figures seem to confirm that these forecasts are achievable: contract sales at 380k sqm (+86%), cash collections of RUB45bn
113 RUSSIA Country Report April 2017 www.intellinews.com