Published on : Monday, March 20, 2017
Aeroflot is among airlines to earn their cost of capital over a 10-year period, with Russia’s flag carrier ranking first among global players for return on invested capital (ROIC).A study by McKinsey & Company found that Aeroflot’s average ROIC, a benchmark metric for financial performance in the industry, from 2005 to 2015 was 11.9%, higher than other major global carriers.
Success factors that help explain sustainable high returns on capital include a unique
offering, cost advantages versus peers, a strong brand and organisational health,according to McKinsey. Aeroflot’s offering has won numerous awards for excellence and plaudits from industry and passengers alike. An important competitive differentiator is seamless connectivity on East-West transit routes, with Moscow recently recognised as the No.1 transport hub connecting Europe and China.
This year Aeroflot was named the strongest airline brand globally by Brand Finance, the
world’s leading independent branded business valuation and strategy consultancy.
Aeroflot also ranks among the world’s top airlines by level of digitalisation, which drives
the high level of efficiency of the company’s operations and business processes.