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Company News

12 July 2007

Aeroflot has renewed insurance policy of aviation risks

12th of July 2007, Moscow - Aeroflot has renewed insurance policy of aviation risks with a discount of 19,6% in comparison with previous policy period. In 2006 the discount was 12%.

Renewed policies of aviation insurance provide insurance cover of JCS “Aeroflot” for hull insurance of airborne vehicles (AV) and the company. Limits of responsibility for insuring passenger, cargo and third parties correspond to all regulations of aviation authorities of all countries included in the network of destinations of the air company, and take into account all requirements of the Mont Real convention, which introduced increased requirements of the responsibilities that air carriers must observe in relation to passengers. Current limits of responsibility of Aeroflot correspond to the standards of international Alliance Sky Team, as the air company is a member of this alliance, and the requirements of company – partners under code-sharing agreements. When conducting flight on internal air ways Aeroflot has taken on voluntarily responsibilities for increasing the level of insurance protection of passengers, third parties, owners of the cargo/baggage and conducts insurance with same limits, as on international air lines. If any damage or injury has occurred to life, health, possessions of the passenger the company must compensate such harm in the full amount, which is approved and agreed either by peace agreement with the effected person (or their relatives) or by court decision. However the amount that is paid by the insurance company, is limited to 25 million us dollars for each effected person. Total limit of liability of Aeroflot to passengers and third parties, forwarded for insurance, is 1 billion us dollars.  

Direct insurance of risk, as before, is conducted in an affiliate company of Aeroflot – JCS “Insurance Company “Moscow””. Reinsurance broker is presented by Willis, which has been representing Aeroflot on international insurance market for six years.

As a leading company for reinsurance of extremely important aviation policy of air company (hull insurance of AV’s and liability to passengers and third parties) Global Aerospace (Great Britain) is chosen once again, and the distribution of risks is conducted between secure reinsurance companies, that have high ratings.

In the frame of preparation for the renewal of the policy of aviation insurance representatives of the reinsurance companies a complex evaluation of the risks of Aeroflot, directing familiarizing themselves with the activity of the company. Quality changes, that are happening in Aeroflot, were truly appraised by international insurance market, which found its reflection in the proposed to the air company conditions of insurance. However for Aeroflot main priority is still the quality of insurance protection of material interests, of passengers and third parties.

During previous four years the rate of hull insurance risks of Aeroflot’s AVs decreased by 67%. The rate for insuring responsibility, taxable for each passenger on international air lines, has decreased by 50,6% and on internal air lines by 50,9%. Expenses for aviation insurance have decreased by two fold during previous 4 years, with the growth of volume of production indexes of the air company, which directly influenced the price of insurance.

JSC «Aeroflot – Russian airlines» (AFLT) is undisputed leader of commercial aviation of Russia, true national transport operator. As the largest air company of the country, it transports more than 7 million people a year, and with subsidiary companies around 9 million i.e. 23% of the total Russian air transport passengers. Having in possession an air park which consists of 81 airborne vehicles, conducts personal flights to 93 destinations in 47 countries, (total – 302 flights a day). Controls 51% of Russian market of regular international transportation and about 12% of domestic transportation. Net profit for 2006 accumulated to 7,9 billion rubles (258,1 million dollars by International Accounting Standards).

Aeroflot – is one of the oldest air companies and one of the most famous commercial brands in the world. Company was founded in 1923, its headquarters in Moscow, in international airport of Sherem’etevo. In 2006 Aeroflot became the first Russian air company to be part of a global alliance Sky Team. United destination network of the alliance consists of 728 destinations in 149 countries, which in turn offers to the passengers of Aeroflot limitless variety of choice. Clients of Aeroflot are also eligible for bonus programs of all partners of the alliance. Information of the advantages of participation in the alliance Sky Team – on the website www.skyteam.com.

Aeroflot is the only certified operator of international aviation standards of operational safety IATA (International Air Travel Association) Operational Safety Audit in Russia.

On the website www.aeroflot.ru it is possible to purchase tickets for Aeroflot flights with the use of on-line payments, technology of electronic ticket, and to find out more about the air company.