09/05/2015

RussianJournalistandPutinBiographerTalkstoIndustryExpertsAbouttheNextGenerationofAirTravelandWhatitCanDofortheFut

RussianJournalistandPutinBiographerTalkstoIndustryExpertsAbouttheNextGenerationofAirTravelandWhatitCanDo
fortheFutureoftheRussianEconomy
ZURICH,May8,2015/PRNewswire/ProminentRussianJournalistandPutinBiographer,Mr.AlexanderKorobkotalksto
Mr.PascalNajadi,PresidentoftheSwissMerchantFinanceFirm,Najadi&PartnersAGandMr.OliverMeier,Founder&
PresidentofMetropolitanAirlines,Zurich,Switzerland.

Mr.AlexanderKorobko,CEORussianHour,Moscow,andPutinBiographer

QuestionAlexanderKorobko(AK):Mr.Najadi,youareseeninRussiaasadoer,apromoterofforeigndirect
investmentintotheRussianFederationforquitesometimenow.InJanuaryofthisyearyoupublishedareport,Is
RussiareallyinCrisis?YouwererightwithyourassessmentthatRussianeverwasinacrisisbutwasfacingamere
macroeconomicchallengetoworkharder.HowdoyouseeRussiaperformingtodayfivemonthsafteryourreport?
Whatarethemostsignificantareas,economicsectors,thatyouarefocusingonwithyourpartners?
PascalNajadi(PN):Firstletmeanswerthequestiononmylastreport.AsIpredictedtheRussianRubleregainedmuch
strengthsinceJanuaryofthisyearinfactithasbecomethebestperformingcurrencytodatenowrangingaround50to51per
USD,backfromthe60and70s,theshortdownwardspikewesawendoflastyear.ReserveshaveseenagainofUSD3
billionandtheoilpricehasbreachedtheUSD60perbarrellevel.Letusnotforget,andIrepeatmyselfhere,thattheRussian
economyisconstantlydiversifyingandimprovingitsproductivity,itsasteadyevolutionaryprocessthatistakingplaceandits
inmyview,again,ratherpositiveinthegrandmeasureofthings.
Nowtoyoursecondquestion.Therearethreesectorsthatareatthecoreofourstrategy.TransportTourism,RealEstateand
energysectorprojects.WherebythelatterisquitecommonasafirstchoiceamongglobalconglomeratesIwishtohighlight
heretheimportanceoftransportandtourisminvestmentsforRussia.ThetransportsegmentinRussiathatwillseethemost
efficientimplementationcostisandwillbetheairtransportmodules.IamspeakingofconnectingRussianswithRussiansvia
theair.PresidentPutinandhisgovernmentmadeclearstatementsaboutthisveryprocessgoingintonational
implementation,spearheadedbyAeroflot.
TheRussianFederationspansoveragiganticareaofnolessthan17.125millionsquarekilometersincludingCrimea,thatis
nolessthan417timestheterritoryofSwitzerland.Onehastoreallylookatthismapandgraspthiscolossalstaggering
territorywithhugedistancesanddimensions,ninetimezonesinonenation,thisisthemarket,quitebigindeed.Tomanage
suchcolossalsizeofterritorydemandsspecialskill,technologyanddiscipline.Airtransportisthemostefficientcosttransport
moduletoconnectRussians.EfficientairlinesrunacostfactoraroundUSD25centsperofferedseatkilometer,thatcostbeats
allothertransportimplementationandoperationscostssuchasrailwaysorhighwaysthatwouldhavetobenewlybuiltintoa
verydiverseandinlargeareaslikeSiberia,harshtopographicandmeteorologicalcircumstances.The'airfactor'asIliketo
termithereisthewinningformulaifimplementedlocally,modularandinterconnectedwiththeregionsandtheoverallmedium
tolongdistancenetworkofferedofAeroflot,averygoodqualitycarrieronemustsay.
Thisleadsustolookatanothergrowthmarket,TourismintheRussianFederation.Thissectorishighlypromising.Thereare
countlessimpeccableoutstandingnaturalwonderlandspotsalloverRussiathatareandwillbediscoveredbytheglobal
tourismmarket.ItsawonderfulinvestmentstorydevelopingwithHotelsandResortsthataresproutinguplikemushrooms
overtime,agreatvectortoinvestnowinto.Russiahasitall,allclimatesalltypesoftopographiesandaccesstoseveralseas,
shorelines,lakesandriversofimmensebeauty.IwishtohighlightthemagicallakeBaikalherejustasoneofmanyexamples
ortheRussianFarEast,PetropavlovskKamchatskiywhereyoucandoHeliSkiinginthemorningononeoftheVolcanoes,
theVolcano3456isthedominantonewhenyoulookoutofyourHotelroom,3456beingthemetersofaltitudeofthisprime
exampleofaVolcano.Thenintheafternoonyougotooneofthelakesinthewildernesstoobservethebears
catchingsalmonateyerangefromthesafedistanceonabridge,atrulyamazingspectacletowatch.IntheRussian
Federationtherearecountlesssuchtouristicexamplesthatyethavetoandwillbediscoveredbythemiddleandupperclass
tourismmarket.
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09/05/2015

RussianJournalistandPutinBiographerTalkstoIndustryExpertsAbouttheNextGenerationofAirTravelandWhatitCanDofortheFut

Mr.OliverMeier,CEOofMetropolitanAirlinessays:"MetropolitanAirlinesisconnectingpeople,citiesandlocal
economies.Mostoftheflightswillallowdaytripsbetweenourcitypairs."

QuestionAK:Mr.Meier.YouarethefounderandPresidentofthenewSwissBoutiqueAirline,MetropolitanAirlines
planningtoservespecificEuropeandestinationsoutofZurich.Canyoupleaseexplainyourvisionandhowyouhave
definedtheniche.
OliverMeier(OM):MetropolitanAirlinesisconnectingpeople,citiesandlocaleconomies.TravellingthroughEurope'sregions
isformanytopofthelistofproblemsandthisisespeciallytrueforpeoplewhohavetotravelforbusiness.Thedemandfor
regionalairconnectionsiscurrentlynotmetbytheincumbentNetworkAirlinesandLowCostCarriers.Manyregionalroutes
betweensocalledTier2citieshavenodirectflightconnections.MetropolitanAirlineswillofferdirecttravelsolutionswhichare
severaltimesmoreconvenientthanalternativeoptionsnamelymorecompetitivethanconnectingflights,trains,busesetc.
Mostoftheflightswillallowdaytripsbetweenourcitypairs.
QuestionAK:CanyouexplaintousifyouruniquenewconceptcouldalsofindfertilegroundsandairintheRussian
Federation?
OM:LookingatsituationinRussiayesIseeveryfertilegroundsforourbusinessmodel.Likeanywhereintheworld,the
demandforairtravelisrisingintheRussianFederation.Flyingisinmostcasesthebestifnottheonlyoptiontravelling
throughthisvastcountry.TheRussianpopulationwouldappreciateouraffordablefares,thereliabilityofourservicesandthe
customerorientedattitudeofourMetropolitanteammembers.SoagainyesIamveryconfidentthatourbusinessmodel
wouldbeatremendoussuccessinyourcountry.

"Russiaisover417timestheterritoryofSwitzerland,Airtransportisthemostefficientcosttransportmoduleto
connectRussians,"saysMrPascalNajadi.

QuestionAK:Mr.Najadi,howdoyouratethesocioeconomicsituationinRussiatoday?
PN:ThisisaquestionIamveryhappytoanswerbyfirstmakingacomplimenttoallRussiansandspecificallytothePresident
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09/05/2015

RussianJournalistandPutinBiographerTalkstoIndustryExpertsAbouttheNextGenerationofAirTravelandWhatitCanDofortheFut

ofRussia,VladimirPutin.IalsohadthepleasurereadingtheBiographyPUTINpublishedbyyouandMr.Hutchinsin2012,it
helpedmetomuchbetterunderstandthehuman,theUberRussian,thephenomenonPutin,agreatbook,compliments.Inmy
view,andIhavehadthehonortoadviseseveralheadsofstatesinotherregionsoftheworldinmycareer,PresidentPutin
hasdoneajobsecondtononeandthisnotonlyfortheRussiansthatcomefirstbutalsofortheinvestmentclimateinRussia
forusforeigners.WeobservetremendousprogressmadeinRussiaoverthelast15years,speciallyintherealmsoflegal
transparency.
AlsoimportantisthemodernisationoftheRussianBankingsector.IfwelookatSberbankforinstance,thelargestbank
majorityownedbytheBankofRussia,weseeapositivemarketadjustment,uptospecsriskcontrolandmanagementand
customerorientedbankproductmodernisationtostandardsofWesternbanks.Itisindeedafascinatingprocessto
witness.NeverhaveIeverbeenabletowitnesssuchacolossalpositivetransformationprocessanywhereelseintheworldin
sucharelativelyshortperiodoftimeifonelooksatevolutionandhernormalspeedsinothercases.
RussiaandRussianshaveachievedthisthroughhardwork,nothingcameeasy,tosayit'sjusttheoilandgaswealthisonly
thehalftruth.IfyoulookatSaudiArabiaorNigeriayoualsoseemassiveoilandgasflowsbutnotevenamerehintofthe
socioeconomicprogressthathasbeenachievedinRussiabyRussianswiththewise,strictandopenmindedleadershipof
Putin,onereallycanmakethiscomplimentwithgoodconsciousnessifonehashadthechancetolook,asIjustmentioned,
otherscenariosaroundtheworld.Lastbutnotleastallthishasbeenachievedwithoutanyaggressionwars,unlikethe
Americanhistorythatismarredwithglobalwarsandconflict,abadexamplevisibletoeachandeveryworldcitizennotneeded
tobeapoliticalscienceexpert.
Q:Mr.Meier,youeloquentlytoldusagreatdealaboutyourspecificvisionaboutairtransport.Canyouperhapstell
usalittlemorehowyouseeyourairtransportvisionconnecttotheinfrastructureontheland,trains,carsandin
somecasesshippingperse?
OM:Commercialaviationisthebackboneofanymoderneconomy.Indevelopingeconomies,suchastheEmirateofDubai,
Aviationmakesupabout27%oftheGDP.InmorediversifiedeconomiessuchasSwitzerland,aviationcontributestoabout
5%oftheGDP.Whenyoucomparegroundbasedtransportationwithaviationyouwillfindoutthatinmostcasesthe
investmentsforhighways,roadsandhighspeedtrainsaresignificantlyhigherthantheimplementationofanairlineservice.
Thelongerthetraveldistancethemorepronouncedthiseffectbecomes.Thehighinvestmentsinlongerrangegroundbased
transportationcanoftennotbejustifiedoneconomicgrounds.
QuestionAK:Mr.Meier,canyoueludeabitmoreaboutwhatmakesorbrakesasophisticatedairtransportconcept,
whataretherisksandwherelietheopportunities?
OM:Fromanentrepreneurialperspective,veryfewindustriesoffersuchahighscalabilityastheairlineindustrydoes.The
economiesofscalearesignificantinthisindustry.However,fromoutsidetheairlinebusinessisoftenperceivedasaneasy
andsexybusinessespeciallythepartabout"easy"isclearlynotthecase.Anairlinerequiresaclearcorporatemission,
clearlydefinedtargetmarkets,asolidorganizationandlastbutnotleastaverystrongmanagementteamwithsubstantial
airlineindustryexperience.Ifthesecrucialpointsarenotrespectedanairlinecanlosealotofmoneyveryquickly.
QuestionAK:Lastbutnotleast,yourairlinesafetysomesay,thesmallerairlines,whilststillsafe,don'tquitereach
thestandardsoftopairlines?
OM:Nothingcouldbefurtherfromthetruth.Airlinesafetydoesnotdependonthesizeoftheairlineorthesizeoftheaircraft
operated,butitdependsonthesafetycultureandmanagementorganizationintheairline.MetropolitanAirlineswillreceiveits
AirOperatorsCertificatefromtheSwissFederalOfficeofCivilAviationwhichiswellknownintheindustryforbeingverystrict
inmonitoringandpolicingairlinesafetyinSwitzerland.Wearehowevernotsatisfiedwiththisalreadyveryhighstandard
requiredbytheauthorities,voluntarilyweinvestmoreinflightsafetythanrequired.Inexampleweinvestmoreinthetraining
ofourPilotsandothersafetycriticalpersonnelthanrequiredbylaw.AsPresidentImakesurethateveryoneinMetropolitan
Airlinesunderstandsthatsafetyisparamount.
QuestionAK.MrNajadihowwouldyousummarizethecurrenteconomicsituationforRussia?
PN:ThetimeforRussiatoshinehascome,weareproudtobepartofthisexcitingsocioeconomicprogress.
Thankyou.
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