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2005

December

On December 1 it was five years since Aeroflot Russian Airlines began regular flights to Mineralniye Vodi. Over this period about 160,000 passengers and 190 tons of cargoes were transported on the Moscow - Mineralniye Vodi - Moscow route by flight SU785/786.

On December 2 A new Collective Agreement for 2006 - 2008, a major corporate document regulating social and labour relations between employees and the employer, was signed.

On December 7 PJSC Aeroflot Russian Airlines and CJSC “Grazhdanskiye samoleti Sukhogo” announced the signing ofa contract for the supply of 30 aircraft inthe new RRJ family (Russian Regional Jet). Under the contract, Aeroflot was to purchase thirty RRJ 95 aircraft of basic configuration, due to be supplied in November 2008. The deal was worth about $820m (in terms of catalogue prices).

On December 12 the first self-reservation kiosk was opened at Aeroflot’s office on Petrovka Str., 21, Moscow. The service allows passengers to check the flight schedule, choose destinations and departure dates, make reservations. The system prints out a receipt confirming the reservation that is handed over with the customer’s passport to the cashier to issue a ticket. The introduction of the new reservation system reduced waiting time and facilitated the process of buying tickets.

On December 12 on the Moscow - Tokyo - Moscow route, Aeroflot passengers were served by both Russian and Japanese stewards. As a result of a competition in Tokyo, 10 people were selected for Aeroflot: nine women and one man. Aviation knowledge, a university degree in English, experience in other air companies, as well as appearance, were taken into account during the contest.

 

On December 13 PJSC Aeroflot Russian Airlines won the “Company of the Year” national competition for air services.

On December 15 Aeroflot carried out technical testing of an automatic system for full passenger service with e-tickets on the Moscow - Los Angeles - Moscow, Moscow - Delhi - Moscow routes. The tests showed that Aeroflot was technically ready to introduce e-tickets. The company satisfied the requirement of the International Aviation Transportation Association regarding the transition to e-ticketing by 2007.

On December 16 PJSC Aeroflot Russian Airlines opened a representation office in the Czech Republic and Slovakia.

On December 16 it was ten years since Aeroflot Russian Airlines began serving regular flights to Novosibirsk. Over this period about 11,000 passenger and cargo flights were served, and over 850,000 passengers were transported on the Moscow - Novosibirsk - Moscow route.

Over the 12 months of 2005, Aeroflot carried 6.707 million passengers and 145,600 tons of mail and cargoes, and flew 20.750 billion passenger kilometers and 2.736 billion ton kilometers. Passenger traffic accounted for 69.1%, and cargo 58,0%.

November

On November 1 PJSC Aeroflot - Russian Airlines became the proud recipient of the Golden Award at the 8th “Brand of the year/EFFIE - 2005” competition in the “Facilities/Service” category. This reward shows the highest degree of consumer” confidence in the “Aeroflot” brand, and a high assessment of the company’s” efforts to rebrand itself and to introduce fundamental improvements to the quality of its products and services. The new corporate colours appeared as vital components of Aeroflot’s” rebranding, as well as the new logo, new colouraeroplanes, new uniform of company” personnel, and new design of the sales offices, tickets and advertising materials. A sincere smile was the major factor of the advertising campaign, ensuring the concept of communication with passengers came to the fore.

On November 1 the rating agency АК&М confirmed Aeroflot’s credit rating at A+ with stable prospects. The company has a low level of debt load, is developing dynamically, is highly transparent, and its services are in great demand. Nevertheless, there are still a few risk factors including significant wear of the fleet, high dependence on fuel prices, and currency risks.

On November 17 it was ten years since Aeroflot-Russian Airlines began regular flights to Khabarovsk. About 300,000 passengers and more than 4.5 tons of cargo have been transported on the Moscow-Khabarovsk-Moscow during this period route. The introduction of IL-9 aircraft brought about some improvements in the technological processes at Khabarovsk airport. An automatic check-in system was introduced, equipment for loading on-board food and for handling containers was installed Since 2005 restaurant-style service has been used on “Aeroflot” flights.

On November 23 PJSC Aeroflot Russian Airlines announced it was to purchase some cargo long-haul Boeing 747-400 or MD-11 aircraft. Until recently “Aeroflot” used four DC-10 aircraft for cargo carriage.

October

On October 4 in accordance with the order of the Federal Service for transport supervision regarding flight permission for IL-96-300 aircraft, PJSC Aeroflot - Russian Airlines from October 4 renewed operations on the Moscow- Shanghai, Moscow - Delhi and night-time Moscow - Khabarovsk routes. All six aircraft were modified to ensure high safety.

On October 6 two unusual and valuable pieces of cargo from the Pushkin State Museum of Fine Arts were sent to Tokyo by Aeroflot flight SU-943. Aeroflot will deliver to an exhibition there a masterpiece of the impressionist Paul Cesan called “A Bridge above the Pond”, pictures of Paul Gauguin, painted by him in Oceania, Pablo Picasso’s” famous canvas “Friendship”, and also works by Henri Matisse - “Small red fish” and “Bouquet of flowers in a white vase”.

On October 7 PJSC Aeroflot Russian Airlines and the Federal State Unitary Company “Russian Post” signed a Contract on the transportation of mail by air on both domestic and international routes and airport services. According to the contract, “Aeroflot” undertakes to carry out the transit by air of Russian and international mail on their aircraft on regular, additional and charter flights to the destinations. It will also provide airport services to load and unload mail at the airport and place it aboard the plane.

On October 10 the international welfare fund “Patrons of art of the century” awarded Valery Okulov, General Director of PJSC Aeroflot Russian Airlines,with the “The Patron of art” gold decoration“Aeroflot Russian Airlines” for rendering assistance to sick children and invalids. Over the first 9 months of 2005, Aeroflot transported free of charge on international flights 160 sick children requiring urgent operations, 53 invalids, and 127 employees of medical establishments, public organizations and welfare funds transporting donor organs for transplantation from abroad, as well as medical and charitable cargoes.

On October 12 Aeroflot announced it was to purchase a controlling stake in the airline company “Dal’avia”. This acquisition allows the carrier to control flights served by the largest company in Russia’s Far East.

On October 18 Aeroflot won the “Best model of the risk-management system among industrial enterprises” competition and was awarded a PricewaterhouseCoopers diploma in the field of risk management field. Aeroflot established a risk management and insurance department in 2000. This decision was motivated by the growing risks on both the international and domestic air carriage markets. As a result, Aeroflot developed an effective strategy for implementing risk management in key business processes.

On October 19 Aeroflot successfully passed an audit for compliance with the IATA-IOSA aviation safety standards.

On October 24 Aeroflot Russian Airlines signed with Airbus a contract for the purchase of seven medium-haul A321 planes within the frameworks of its plan for fleet modernization. Deliveries of the A321 aircraft were planned for the fourth quarter of 2006.

On October 30 for the purpose of increasing the quality of passenger service, all flights made by Aeroflot to/from New York were to be transferred from Terminal 3 to Terminal 1 of New York’s JFK airport.

September

On September 6 PJSC Aeroflot, OJSC “International Airport Sheremetyevo” and OJSC “Terminal” signed a memorandum on mutual agreement regarding participation in the “heremetyevo” project. The memorandum is a frame agreement between the airline company, airport and the organization implementing the third terminal project.

On September 6 it was five years since “Aeroflot Russian Airlines” began regular flights to Tchelyabinks, the capital of the southern Urals.

Over this period, about 100,000 passengers and over 350 tons of cargo were transported on the Moscow - Tchelyabinsk - Moscow route.

On September 12 the Board of PJSC Aeroflot Russian Airlines expressed its concern regarding the suspension of IL-96-300 aircraft. Aeroflot, having six such aircraft, has lost 40% of long haul fleet and suffered sufficient losses, passengers experienced difficulties because of schedule changes and rerouting of direct flights. The Board of Aeroflot and the company itself, guided by safety issues concerning IL-96-300 aircraft, required developers, producers and leasing companies to give official guarantees that new aircraft of this type, due to be supplied in future years, will have no similar or other production defects.

On September 13 Valeriy Okulov, General Director of Aeroflot, held a reception in New York in honour of the forthcoming opening of the “Rossiya” art exhibition of Russian masterpieces, “”timed to coincide with the 60th anniversary of the UNO foundation of the Museum of Solomon Guggenheim on September 16, 2005. Major organizers of the exhibition were the Federal Agency on Culture and Cinema of Russia, the Potanin Charity Fund, and the Museum of Solomon Guggenheim. JSC “Aeroflot” acted as a partner and official carrier of the exhibition. Aeroflot cooperated with the Museum of Guggenheim to realize this large-scale project and safely transported exhibits and experts.

On September 15 Aeroflot announced its “Destinations under the hammer” autumn promotion, during which rates for international and domestic flights were reduced over the period of September 24 - December 17, 2005.

On September 14 a baby boy was born onboard a Boeing 767 on Aeroflot’s SU-321 flight from Moscow to Los-Angeles! Contractions began seven hours into the flight when the plane was above the ocean, not far from the Canadian” border, and there were a few hours more to fly to the destination airport. It was not possible to make an emergency landing on the nearest military airport, since the landing runway was too short for Boeing 767 aircraft. Given these circumstances, stewardess Galina Savenkova delivered the baby herself. The crew members also did their best to help during the birth. It was a successful delivery with no complications. The mother Ludmila Yalinus, a citizen of Russia, felt fine. After the aircraft had landed in Los-Angeles airport, she went down the stairs by herself with the baby in her arms. Ludmila Yalinus was flying to see her husband, a citizen of the US.

On September 19 Aeroflot helped Russian citizens affected by Hurricane Katrina - they were issued new tickets to replace lost ones and were able to return to Russia.

On September 20 Aeroflot held a special“” shareholders’ meeting that approved, by absentee voting, a major deal to lease six new IL-96-300 aircraft from OJSC “Ilyushin Finance Co”. The term of the lease was 15 years.

On September 22 PJSC Aeroflot Russian Airlines became a rightholder of two new trademarks. Russia’s Intellectual Property Federal Service granted patent and trademark certificates for the company’s” new logo with a stylized smile and tricolor Russian flag, and the “Sincerely Yours” trademark. Aeroflot owns the exclusive right to this trademark. The visual symbols of the Aeroflot brand are now enshrined in legal form.

The certificates were also granted to Aeroflot’s subsidiary airline “Aeroflot-Nord”, both in English and in Russian.

On September 23 Aeroflot unveiled a new service for on-line ticket reservations at www.aeroflot.ru, which will be both convenient for passengers and staff, and allow the company to reduce costs and ensure the highest level of service in conditions of extreme competition on the international aviation market.

August

On August 1 Aeroflot Russian Airlines resumed regular flights to Dnepropetrovsk once a week on Mondays on TU-134 aircraft. The flight schedule is convenient for Aeroflot’s international and federal flights from Moscow to Europe, North America, SEA and Russian cities.

On August 16 PJSC Aeroflot, OJSC Vneshtorgbank and OJSC Terminal signed a memorandum on mutual agreement regarding participation in the “Sheremetyevo-3” project. The memorandum is a frame agreement specifying the terms and conditions of participation, decision-making and interaction of future stockholders, and financial procedures.

On August 22 after the decision by the Federal Service on Transport Supervision on the temporary suspension of IL-96 aircraft, Valeriy Okulov, General Director of Aeroflot Russian Airlines, made an appeal to passengers. He assured them that the company would do its best to fulfill its obligations to them. Suspension of the IL-96 fleet meant that the the company had to optimize its route system and hire aircraft from other companies. In spite of the difficulties and losses, the company fulfilled all its obligations to passengers and clients.

July

On July 6 Dmitry Milovantsev, Deputy Minister of Information Technologies and Communication, and Valeriy Okulov, General Director of PJSC Aeroflot Russian Airlines, signed an “Agreement on cooperation to develop an e-workflow system in civil aviation”.

On July 12 PJSC Aeroflot Russian Airlines was named the winner of the first all-Russian “Best Russian HR Service 2005” competition. It was announced by the Honorable Public Jury of the competition, made up of leading international and domestic experts in HR politics and management.

June

On June 1 the organizing committee of the International Forum of Accountants and Auditors named Aeroflot Russian Airlines as the “Best Accounting Enterprise - 2004”.

On June 1 Valeriy Okulov, General Director of Aeroflot Russian Airlines, was for the third time elected as a member of the Management Council of the International Association of Air Transportation for the period of 2005 - 2006.

On June 7 it was five years since Aeroflot Russian Airlines began regular flights to Perm. Over this period about 180,000 passengers and 600 tons of cargo were transported on the Moscow - Perm - Moscow route on flight SU823/824.

On June 18 PJSC Aeroflot Russian Airlines and OJSC Terminal (a 100% subsidiary of JSC “Aeroflot”) under the Sheremetyevo-3 construction project completed their assessment of bids for the role of general contractor of the Sheremetyevo-3 airport complex. The bid by “ENKA” was selected.

On June 22 Aeroflot granted further discounts to gold and silver medalists from secondary schools from across the Russian regions planning to enter university in Moscow. A 50% discount for economy class tickets was granted to all school-leavers in 2005 with medals from provincial schools.

May

On May 4 at the ceremony to announce the results of the annual international “Freddie Awards” loyalty programme competition, Aeroflot was awarded the “Best Bonus Promotion” prize; in the categories “Best Member Communications” and the “Best Web Site”, the Russian national carrier achieved second place, only marginally behind the winners .

On May 5 prior to the 60th anniversary of Victory Day, Aeroflot and Rossiya TV channel presented a documentary movie entitled “A 60-year flight”, devoted to the pilots of civil aviation and participants in the Great Patriotic War.

On May 5-20 in commemoration of the 60th anniversary of victory in the Great Patriotic War, “Aeroflot Russian Airlines” held the “Jubilee of the Great Victory” offer. For the fifth time, Aeroflot offered thousands of veterans of the Great Patriotic War, former prisoners of the Nazis, and survivors of the blockade of Leningrad an opportunity to fly with Aeroflot to any destination in Russia or Europe (except Malta, Cyprus and Turkey), including the CIS and Baltic countries free of charge. For the first time, in 2005 the offer covered all veterans and invalids of the Great Patriotic War who live in the CIS and Baltic countries, including citizens of those countries. The “Jubilee of the Great Victory” offer was also open to all veterans and invalids of the Great Patriotic War who live in Europe (except for Cyprus, Turkey and Malta); they were granted a 50% discount.

On May 12 PJSC Aeroflot Russian Airlines and Alitalia signed a code-sharing agreement on the joint operation of the Moscow - Milan route. The agreement allowed Aeroflot to increase its presence on the air carriage market and use Alitalia flights more efficiently, offering additional opportunities for its passengers. The partnership agreement with Alitalia was one more step towards Aeroflot’s membership of the international SkyTeam alliance.

On May 31 Russia’s “Pobeda” organizational committee, headed by President Vladimir Putin awarded Aeroflot with the “60 years of Victory in the Great Patriotic War 1941-1945” medal for its active participation in encouraging patriotism and large contribution in preparation of the Victory jubilee.

April

On April 1 at the second “Role of corporate mass media in company management” international conference, the Aeroflot’s inflight magazine was named the “Best corporate publication of 2005”.

On April 12 Aeroflot Russian Airlines was awarded the “Gold Mask - 2005” national prize in the category “Support for Russian theatre”.

March

On March 4 Aeroflot became a participant of Russia’s social insurance programme. The airline company and the Social Insurance Fund of Russia signed a partnership agreement. Accordingly, citizens in receipt of social services can make use of free tickets on domestic Aeroflot flights to destinations for treatment.

On March 15 a code-sharing agreement was signed between PJSC Aeroflot Russian Airlines and Korean Air on the joint operation of the Moscow - Seoul route. Joint flights will be served by both carriers on the Moscow - Seoul- Moscow route from six to ten times a week, subject to the season and demand.

On March 23 Aeroflot made the switch to an automatic reservation system and sale of Sabre tickets. The SabreSonic inventory system, Sabre ACSI dispatch management system, support system of often flying passenger Sabre Traverse frequent-flyer system, and the MySabre agency sales system were introduced.

February

On February 14 Aeroflot Russian Airlines and the Association of Chess Federations, jointly with the Committee for Tourism of the Moscow Government, over the period February 14-24, 2005 held the “Aeroflot Open 2005” chess competition at the “Rossiya” Hotel with a prize fund of $175,000. This was the fourth time the largest open contest had been held. The competition is renowned in the chess world and has become a tradition. 673 chess players from 54 countries participated in the tournament: 162 international grand masters (among them 19 women), 133 international masters (19 women), 68 FIDE masters (11 women) and 91 amateurs.

On February 24 Valeriy Okulov, General Director of PJSC Aeroflot Russian Airlines, won the “Person of the Year” award in the category “For personal contribution to ensuring competitiveness of an airline company in the international market and high financial results”. Valeriy Okulov received the Order of “Slava Rossii” in the Patriarchal Palace of the Moscow Kremlin.

January

On January 24 Aeroflot attained a level of flight security of 99.95% - that is in the medium range of the ICAO classification (99.90 - 99.98%).