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Utair is an airline that combines passenger services with one of the world's largest fleets of civil helicopters. The helicopter division serves oil and gas projects and works under international contracts. The shares trade under the ticker UTAR.
The passenger business runs by the rules common to the whole industry: a high share of fixed costs, the decisive importance of load factor, and dependence on the price of fuel.
The helicopter division is built differently and makes the company unlike other carriers. Helicopters fly not to a timetable but under contract: they carry rotation workers to oil and gas fields, support geological exploration and take part in international humanitarian operations. Such contracts are long-term and do not depend on the seasonality of passenger traffic.
A separate feature of the company is its heavy debt history: the liabilities built up during the period of expansion have been restructured and continue to shape its financial position.
Scheduled flights across Russia, including to hard-to-reach regions.
Servicing oil and gas projects and international contracts.
Repair and technical support of aircraft.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
It operates passenger flights across Russia and carries out helicopter work: delivering personnel to oil and gas fields, supporting geological exploration and fulfilling international contracts.
Helicopters fly not to a timetable but under contract with a specific customer — an oil company or an international organisation. Such contracts are long-term and do not depend on the seasonality of passenger traffic.
Because for many northern settlements and oil and gas fields aviation is the only year-round form of transport. Demand there does not depend on competition: there is simply no alternative.