In the spring of 2014, Vitaly Saveliev signed his second five-year contract as CEO of Aeroflot, Russia's flag carrier. In the fall of that year a crisis struck Russia. Following a collapse in oil prices, the rouble lost almost 50 per cent of its value, Russia's Central Bank raised its benchmark one-week repo rate from 10.5 per cent to 17 per cent, and the fourth-largest Russian airline (Utair) defaulted on its bonds – all in a matter of weeks. Continuing Western economic sanctions added a few dark brushstrokes to an already bleak picture.

‘Bad luck?’ asked the 60-year-old executive who, in the previous five years, had turned Aeroflot from the ‘airline to avoid’ into a rising star of the European aviation industry, increasing yearly revenues from under US$3.3 billion to almost US$9.1 billion and net income from US$86 to US$230 million, lifting passenger figures from 11.1 to 31.4 million and improving labour productivity by a factor of 3 (see Table 4.1). ‘Opportunity!’ answered the seasoned leader, who had managed through many crises in his 30-year career. And he turned out to be right.

In the two years that followed, Aeroflot improved its market share and profitability – and strengthened its position as one of the most dynamic airlines in the world. Under Saveliev's leadership Aeroflot did what most businesses refuse even to attempt – reduced costs and raised the top line. In the fall of 2014, Aeroflot quickly adapted its strategy to the new economic reality by withdrawing seven planes from action, delaying the delivery of new aircraft, cutting administrative expenses and letting staff go. In 2015, Saveliev categorically refused the Russian government's request to acquire a defunct Transaero, the second-largest Russian carrier, for 260 billion roubles (US$4.5 billion) – but negotiated a deal.