INTRODUCTION

Today, one of the most competitive and prominent industries in the world is

the airline industry. There are over thousands of airlines which have International

Civil Aviation Organization (ICAO) codes. Passenger travel demand is expected

to continue growing as more people are expected to take to travel for leisure or for

business. Currently there are some neophyte airlines are doing their best to also

become successful in the airline industry.

In this paper, the readers will know more about how a neophyte airline

become successful in the span of 17 years. This airline is VIM Airlines. It is a

Russian airline headquartered in Moscow and is based at Domodedovo

International Airport. Presently, the airline offers international scheduled and

charter operations for both of its passengers and cargo as well as wet lease

services.

In the history section, the readers will understand how VIM Airline started.

In the organizational structure section, the readers will know who are the persons

behind the 17 years of success of the VIM Airlines. In the destinations sections,

the readers will be able to know what are the different destinations that the VIM

Airlines provides their air services.

Also included in this paper is the fleet of VIM Airlines. The fleet includes the

retired and the current aircrafts that the airline acquired. The paper also includes

the incidents and accidents that happened within the years of service of the airline.

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 At the end, the readers will be knowledgeable about this airline. They may

conclude what is/are the contributions of VIM Airlines to the airline industry. And

how VIM Airlines give an impact to the world of aviation.

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 HISTORY OF THE COMPANY

2000

VIM Airlines started operations in 2000, with a soviet-built aircraft Ilyushin

Il-62M.

2002

VIM Airlines was founded in October 2002. It was founded by the general

director of (Aerofreight) company Viktor Ivanovich Merkulov, whose initials form

the abbreviation (VIM).

2003

On November 27, VIM Airlines have obtained the operator’s certificate

No. 451 for performance of freight and passenger air carriage. The company then

operated four Il-62M and four An-12 aircraft, mainly en routes to Asia (Vietnam,

China, Thailand), which performed both passenger and freight flights.

2004

In 2004, VIM Airlines has developed and started implementing the large-

scale target program for complete replacement and expansion of its company

flying stock fleet. In the framework of under this program, twelve comfortable and

economically efficient Boeing 757-200 aircraft were purchased and commissioned

from the subsidiary of (Lufthansa) — (Condor GmbH) specializing on charter

flights. On July 16, VIM Airlines performed its first flight on Boeing 757-200 aircraft.

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After replacement of the flying stock fleet with 12 medium-range Boeings 757-200,

VIM Airlines managed to occupy a leading position on all popular charter travel

routes (Egypt, Tunisia, Turkey) having considerably pressed other air companies,

traditionally operating Il-86 aircraft. In addition, VIM Airlines started the flights

on popular travel routes to Western Europe, mainly to Italy and Spain, where

charter flights on Il-86 aircraft could not be performed due to existing noise

limitations. In November, the flights to Bratsk and Chita were introduced.

2005

In February, regular flights to Sochi and Ufa were introduced. In August, for

the purpose of optimization of management of all passenger carriage

procedures — starting from booking and sales to checking-in and departure

of passengers and baggage in the airports — VIM Airlines has started the

introduction of SITA integrated solutions package, including following products:

SITA Reservations — air carriage booking and sales system;

SITA Airfare — fares calculation and distribution system;

SITA Ticketing — automated ticket and financial statements printing

system;

SITA DCS — hosted passenger check-in and departure system.

Starting August 10, the company started operating the (Fleet Watch)

application used for real-time management and planning of the flying stock.

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2006

Four more Boeing 757-200 aircraft were purchased and commissioned.

VIM Airlines becomes the largest operator of this aircraft in Eastern Europe. United

Nations makes a positive decision to include VIM Airlines in the list of the air

carriers admitted to carriage in the framework of their program. In May 2006, for

the purpose of providing regional, domestic and international air carriage of the

Republic of Bashkortostan, (Bashkortostan Airlines) company, a subsidiary

of VIM Airlines, was founded.

2007

In the end of the year, VIM Airlines took first place among all Russian air

companies with its passenger turnover on the market of charter flights. A number

of regular flights to Irkutsk, Beloyarsky, Novy Urengoi, Anapa and Kemerovo were

introduced.

Regular flights of VIM Airlines now covers 17 cities of Russia. Air training

center of VIM Airlines purchases special ground training simulator for practicing

rescue procedures in the passenger cabin of Boeing-757, the only one in the

territory of the Russian Federation.

2008

The traffic under the aegis of UN increases. The company introduces fully

operating modern electronic systems, such as E-ticketing, DCS, etc. Regular

flights programs are cut.

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2009

VIM Airlines continues to keep the position of one of the leaders in the

charter segment of the market. Cooperation with United Nations expands. In the

framework of the fleet restructuring program, the company ceases to operate the

outdated aircraft produced in Russia and signs the memorandum of purchase

of Boeing 747 aircraft. A program of shifting of continuous charter flight to the

regular basis is started. Particularly, the regular flight network of the company was

supplemented by Rimini and Tenerife. A number of new destinations for regular

international flights appeared, such as Gäncä, Länkäran, Andijon, Osh.

2010

Passenger turnover of VIM Airlines demonstrates sustained growth. The

company performs seasonal charter flights from Moscow and regional Russian

centers to the cities of Europe — Spain, Italy, Greece, Bulgaria, and to the resorts

of Egypt, Turkey, Morocco, Tunisia. Regular flights network of VIM Airlines now

includes 17 cities: Barcelona, Naples, Thessaloniki, Catania, Palermo, Rimini,

Alicante, Tenerife, Malaga, Osh, Namangan, Qarshi, Andijon, Länkäran, Gäncä,

Sochi and Chita.

A program of charter flights for Muslim pilgrims from Grozny airport to the

Holy Land — to Saudi Arabia and Jordan.

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2011

A passenger traffic of the company increases considerably — 22.7% higher

than during the same period of 2010; the number of flights increases by 28.8%.

The volume of carriage of VIM Airlines under the UN contracts has increased

by 77%, which allowed the company to occupy the leading position among all UN

air companies accredited to UN, having pressed a large number of European air

companies.

Regular flight network of the company now includes 27 cities: Alicante,

Barcelona, Malaga, Thessaloniki, Rimini, Ovda; Sochi, Krasnodar, Rostov-on-

Don, Yekaterinburg, Novosibirsk, Chita, Omsk, Barnaul, Magadan, Khabarovsk,

Petropavlovsk-Kamchatsky; Osh, Namangan, Fergana, Samarkand, Qarshi,

Andijon, Länkäran, Gäncä, Gyumri, Termiz. Company also performs charter flights

both within the Russian Federation and to the resorts of Italia, Spain, Greece,

France, Finland, Austria, Bulgaria, Israel, India, UAE, Sri Lanka.

In 2011 VIM Airlines receives the confirmation from IATA concerning the

inclusion into the register of IOSA operators — an act of recognition of safety

of services rendered by the company on the market of domestic and international

air carriage by IATA. Quantitative indicators of flight safety applied in the world

practice are traditionally upheld by VIM Airlines at the level of the leading air

companies.

In 2011, VIM Airlines introduces new classes of servicing — (business

class) and (advanced economy class), and participates in the program of air

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carriage between the European part of the Russian Federation and the airports

of Siberia and Far East subsidized by the government.

2012

In 2012, the company’s route network of scheduled flights amounted to

about three dozen cities: Barcelona, Alicante, Thessaloniki, Rimini, Ovda; Sochi,

Krasnodar, Gelendzhik, Ekaterinburg, Novosibirsk, Barnaul, Magadan,

Khabarovsk, Petropavlovsk-Kamchatsky, Pevek, Osh, Namangan, Ferghana,

Samarkand, Karshi, Andijan, Lankaran, Ganja, Gyumri, Termez. The charter

flights were also performed both within Russia and to the world resorts popular

among Russian tourists.

"VIM-AVIA" group of companies continues to hold a leading position among

Russian airlines by number of passengers carried on international flights. In 2012,

"VIM-AVIA" group of companies performed 8909 flights, having transported

1,554,339 passengers together with "Bashkortostan" Airline Company.

In December 2012 the airline company celebrated its 10th anniversary.

2013

In 2013, "VIM-AVIA" transported 1,511,826 passengers and performed

8945 flights.

In 2013 the company’s route network of scheduled flights comprised of

cities: Barcelona, Tenerife, Thessaloniki, Ovda, Sochi, Krasnodar, Gelendzhik,

Simferopol, Makhachkala, Ekaterinburg, Novosibirsk, Pevek, Osh, Namangan,

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Ferghana, Samarkand, Karshi, Andijan, Lankaran, Ganja, Gyumri, Termez,

Dushanbe, St. Petersburg, Gabala, Alicante, Baku, Tivat, Antalya.

The charter flights were also carried out within Russia, to the CIS countries,

as well as to Spain, Greece, Italy, France, Finland, Bulgaria, India, Israel, United

Arab Emirates, Sri Lanka, Turkey, Egypt, Czech Republic. The company’s charter

route network has been supplemented with new flights to the Greek resort islands

in the Ionian Sea - Zakynthos, Corfu, Rhodes, Heraklion.

"VIM-AVIA" Aviation Training Center carried out the training of flying

personnel in more than 25 courses. For the period January-December 2013 about

677 members of the flying personnel were trained at Aviation Training Center. The

number of flight attendants, passed different types of training, amounts to about

1,655 people, including emergency rescue training.

In 2013, "VIM-AVIA" has continued to implement a program to expand and

diversify the fleet by means of aircraft of Russian and Western production. Under

this program, a series of negotiations with suppliers of aircraft and the largest

Russian and foreign aircraft building enterprises - JSC "Tupolev”, “Bombardier

Commercial Aircraft”, a number of domestic and foreign leasing companies.

An agreement for purchasing four Airbus319-111 aircraft was signed. Thus,

one more step of the program of increase and phased replacement of the fleet was

performed. The new aircraft are supposed to be used on existing company routes

as well as for the further expand of the regular route map.

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2014

In 2014, "VIM-AVIA" has transported 1,613,970 passengers, of which

1,413,505 - on the scheduled flights. The number of passengers increased by

75,975.

The share of regular flights of airlines with respect to the charter was about

90%.

The number of socially important transportation, which is one of the priority

areas of the company, has increased. "VIM-AVIA" has made a significant

contribution to air transportation of passengers and athletes to the Olympic Games

in Sochi. During the Olympic Games by the airline has transported 21795

passengers in both directions. Also, "VIM-AVIA" has carried out a flight of

participants and guests of Paralympics.

In 2014, "VIM-AVIA" has performed a number of large socially important

charter programs: transportation of children, including those from orphan homes,

to their summer vacation, people with disabilities and other preferential categories

of passengers. The charter programs performed the transportation of Muslim

pilgrims from Grozny and Makhachkala in Medina, Aqaba and Jed and Christian

pilgrims in Bari (Italy). Also, the airline has supported a number of cultural and

sporting events in the country and on international routes. Among them there are

projects such as "Fly for the child" (help for adopter families), transport of sports

teams and creative teams, support of resonance activities like "Kinotavr" and

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"Dialogue of Civilizations". The cooperation of "VIM-AVIA" and the United Nations

Organisation has continued.

The commissioning of a new type of the Airbus-319 aircraft was one of the

most significant events for "VIM-AVIA" activity. By implementing the next phase of

the program of increase and upgrade the fleet, the airline has expanded the fleet

with four new aircraft. Expansion of the fleet, as well as the introduction of different

aircraft types with different flight characteristics and layout to a certificate, allowed

"VIM-AVIA" to increase the number of flights and offer passengers more

convenient travel routes.

The airline carries out the adjustment of perspective development plans in

accordance with the changing external situation. Projects for the introduction of

new aircraft with the terms of the implementation in the first half of 2015 will be

suspended until a new trend in air travel. After that fleet development plan will be

audited and its implementation will be continued. At this stage, the program of the

costs reduce while maintaining the necessary production and personnel potential

as well as the consistently high level of safety will be implemented.

2015

In 2015, as part of the next stage of the company re-branding, which began

with a change in aircraft livery color "VIM-AVIA" has introduced a new form design

of flight attendants. "Magenta" and "gray" brand colors were replaced by bright red

and "anthracite" - colors corresponding to new, dynamic company development

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strategy, conquer of new areas of air transport market, quality improvement of the

service level.

In 2015, "VIM-AVIA" has carried about 1 600 000 people. The airline has

performed 11 414 flights, of which 10 520 were regular (90%). The number of

flights has increased by 868. The airline performed flights to Sochi, Krasnodar,

Anapa, Simferopol, Chisinau, Magadan, Pevek, Komsomolsk-on-Amur,

Vladivostok, Khabarovsk, Blagoveshchensk, Yekaterinburg, Novosibirsk,

Makhachkala, Yerevan, Samarkand, Termez, Karshi, Osh, Namangan, Ferghana,

Andijan, Kurgan-Tube, Ganja, Gyumri, Termez, Tenerife, Rimini, Ovda. The flights

to cities such as Vladivostok, Magadan, Khabarovsk were resumed. The charter

flights were carried out to Spain, Italy, Israel, to the Greek island resorts; also the

cooperation with United Nations Organisation has been continued.

In 2015, "VIM-AVIA" has continued to carry out major social projects: the

transport of children to places of summer vacation, people with disabilities, groups

of sportsmen and creative collectives; subsidized transport of residents of the Far

East. We provide transportation of volunteer groups, parents and children within

the framework of the project "Flying child" of the fund "Change a Life".

"VIM-AVIA" Aviation Training Center carried out the training of flight

personnel of more than 22 courses. For the period January-December 2015 246

members of the flight personnel were trained at Aviation Training Center. The

number of flight attendants, passed different types of training, amounted to 552

people, including emergency rescue training.

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2017

In July 2017, it was announced that the airline had signed a letter of intent

to lease 15 Irkut MC-21-300s at the MAKS Air Show in Moscow. The airline has

yet to decide which engines will be chosen for the aircraft. The aircraft are

scheduled to be delivered from 2021-2024.

In late September 2017 however, VIM Airlines faced severe struggles as

aircraft have been seized at foreign destinations and several routes were

cancelled, including all operations from its home base Moscow-Domodedovo. The

airline had aircraft seized by lessors in Turkey following ongoing investigations by

the Russian authorities. The airline suspended all Charter operations in September

2017 and will stop all Scheduled operations on 15 October 2017.

VIM’s Mission

The mission as the philosophy: “Bring people closer to the dream, no matter

where they are.”

The expanded mission:

“We are the Russian airline that provides transportation service for

passengers on domestic and international routes in accordance with the highest

standards and requirements.

Our aircraft are operated by best pilots and serviced by professionals. We

use advanced technologies in our operations.

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 We ensure a high level of safety by means implementation of quality and

safety management systems. We take into account all of our passengers wishes,

providing quality services at the best prices.”

VIM’s Motto

“We “fly” with you, we fly for you!”

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 Viktor Ivanovich Merkulov

Founder

Rashid Mursekaev & Svetlana Mursekaev

President, Owner

Alexander Kochnev

Chief-Executive-Officer

Yekaterina Panteleyeva

Chief Accountant

Elena Fedorova

Head of the Public Relations Department

Organizational Structure

Figure 1

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 DESTINATIONS

VIM Airlines serves the following destinations:

Asia

Armenia

Yerevan (Zvartnots International Airport)

Azerbaijan

Ganja (Ganja International Airport)

China

Beijing (Beijing Capital International Airport)

Guangzhou (Guangzhou Baiyun International Airport) – seasonal charter

Haikou (Haikou Meilan International Airport) – seasonal

Shanghai (Shanghai Pudong International Airport)

India

Goa (Goa International Airport)

Kyrgyzstan

Osh (Osh Airport)

Tajikistan

Dushanbe (Dushanbe International Airport)

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 Khujand (Khujand Airport)

Qurghonteppa (Qurghonteppa International Airport)

Uzbekistan

Andizhan (Andizhan Airport)

Fergana (Fergana International Airport)

Namangan (Namangan Airport)

Qarshi (Karshi Airport)

Samarkand (Samarkand International Airport)

Termez (Termez Airport)

Europe

Bulgaria

Burgas (Burgas Airport) – seasonal charter

Varna (Varna Airport) – seasonal charter

Cyprus

Larnaca (Larnaca International Airport) – seasonal charter

Greece

Corfu (Corfu International Airport) – seasonal charter

Heraklion (Heraklion International Airport) – seasonal charter

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 Kos (Kos Island International Airport) – seasonal charter

Rhodes (Rhodes International Airport) – seasonal charter

Montenegro

Tivat (Tivat Airport) – seasonal charter

Russia

Anadyr (Ugolny Airport)

Anapa (Anapa Airport)

Blagoveshchensk (Ignatyevo Airport)

Chelyabinsk (Chelyabinsk Airport)

Gelendzhik (Gelendzhik Airport)

Irkutsk (Irkutsk International Airport)

Kaliningrad (Khrabrovo Airport)

Kazan (Kazan International Airport)

Krasnodar (Krasnodar International Airport)

Magadan (Sokol Airport)

Moscow (Domodedovo International Airport Base)

Nizhny Novgorod (Strigino International Airport)

Novosibirsk (Tolmachevo Airport)

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 Omsk (Omsk Tsentralny Airport)

Pevek (Pevek Airport)

Rostov-on-Don (Rostov-on-Don Airport)

Saint Petersburg (Pulkovo International Airport Focus City)

Samara (Kurumoch International Airport)

Simferopol (Simferopol International Airport)

Sochi (Sochi International Airport)

Tyumen (Roshchino International Airport)

Ufa (Ufa International Airport)

Ulan-Ude (Baikal International Airport)

Yekaterinburg (Koltsovo Airport)

Spain

Barcelona (El Prat Airport) – seasonal charter

Tenerife (Tenerife South Airport)

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VIM Airlines Flight Map

Figure 2

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