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Company News

31 May 2010

Decisions of Aeroflot's board of directors

May 31 2010, Moscow – Today the Russian Minister of Transport Igor Levitin has chaired a regular meeting of JSC Aeroflot Board of Directors.

The Board considered the preliminary results of the Company’s operational, financial and economic performance in 2010 QI. Inthe first quarter of2010,Aeroflot carried 2,343 thousand passengers, and performed7,238 million passenger kilometers. Passenger load factor was72.9%, which is 11.7%higher than in the previous year. Revenue load amounted to59.1%, 10.9% up from the previous year's level. Compared to2009, work volume in Q1 grew: by 31.9% in passenger traffic(+567.3 thousand passengers), and by 34.3% in passenger turnover(+1848.8 million passenger kilometers).

Furthermore, the Company has already revised its performance in the four months of 2010. Compared to2009, work load in the four months has grown: by 30.8% in passenger traffic(+738.3 thousand passengers), by 35.4% in passenger turnover(+2542.7 million passenger kilometers).

The Board approved the programme designed to bring JSC Aeroflot to a break-even point in operational activity. Implementation of the suggested measuresaimed at costs reduction and optimization (by1.9 billion RUB) will ensure the Company’s breakeven performance and sound profits.

The Board analysed the report concerning JSC Aeroflot’s involvement in managing the entities established with its participation, and in improving the system of its subsidiaries and affiliates corporate management. In the global crisis situation, Aeroflot Group enterprises have shown positive dynamics in terms of revenues and net profitsas compared to2008.

The Board supplemented the agenda of the extraordinary general meeting of JSC Aeroflot's shareholders with the issue 'On approval of transactions betweeen JSC Aeroflot and its subsidiaries and associated companies which may be executed in the future, in the course of the regular operational activity of JSC Aeroflot', and recommended that the extraordinary meeting of shareholders should approve the transactions.

Concerning the preparation and holdingof the extraordinary meeting of shareholders of JSC Aeroflot, the Board decided to hold the meeting in the form of absentee voting, and approved its agenda.

The Board considered the information with regard to updating of the service level agreement between JSC Aeroflot and JSC Sheremetyevo International Airporteffective as of April24, 2006. The update includes the parties' obligations to sufficiently improve the quality of services provided to Aeroflot’s flights and passengers at the Sheremetyevo airport.

The Board approved the lease of three А320family aircraft, which will bring the number of this type aircraft operated by the Company to67.

AEROFLOT is Russia’s leading air carrier, member of the global SkyTeam alliance. Its consolidated route network covers 856 destinations in 169 countries. In 2009, Aeroflot carried 8.755 million passengers.

Aeroflotholds the first place in passenger service on economy-class short- and medium-haul flights, and business-class long-haul flights among SkyTeam European airlines. Aeroflot’s leading position was discovered based on SkyTeam’s Onboard Survey results for April – September 2009.

 Aeroflot was the first Russian carrier to enter the IOSA Registry, and has multiple times confirmed the certificate.Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The company’s Quality Management System is certified for compliance with ISO 9001:2000.

Aeroflotoperates one of Europe’s youngest air fleets that consists of 114 aircraft. Aeroflot is based in Moscow, at the Sheremetyevo International Airport. Findmoreatwww.aeroflot.ru.

 

Department for Public and Government Relations