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2011

INCREASE OF CARRYING VOLUMES AND MARKET SHARE

Airline assets that previously belonged to the State Corporation Russian Technologies were transferred to Aeroflot in November 2011 in compliance with a Russian government decree calling for creation of a national carrier on the basis of PJSC Aeroflot.

In 2011 Aeroflot began sale of blocks of cargo capacity by means of electronic auctions. Some 15 companies took part in the first auction, which used the Sberbank AST trading platform. Sales at the auction were priced 19.3% above the starting level.

DEVELOPMENT OF THE ROUTE NETWORK

EXPANSION OF PRESENCE IN THE RUSSIAN MARKET:

Aeroflot increased the number of flights per week on several routes in its summer 2011 timetable, as follows: Anapa (from 7 to 14), Vladivostok (from 13 to 14), Volgograd (from 7 to 14), Ekaterinburg (from 21 to 28), Irkutsk (from 14 to 21), Kazan (from 7 to 27), Kaliningrad (from 21 to 35), Krasnodar (from 21 to 35), Krasnoyarsk (from 14 to 21), Nizhnevartovsk (from 7 to 14), Omsk (from 14 to 21), Perm (from 7 to 21), Sochi (from 28 to 35), Tyumen (from 7 to 14), Ufa (from 7 to 14), Khabarovsk (from 10 to 12), and Chelyabinsk (from 7 to 21).

The Company also resumed scheduled flights between Moscow and Nizhny Novgorod.

EXPANSION IN THE CIS:

Aeroflot began joint operation with the Ukrainian company, AeroSvit, on the Moscow–Kiev, Moscow–Dnepropetrovsk and Moscow–Simferopol routes.

Aeroflot resumed service on the route Moscow–Minsk–Moscow twice a week.

EXPANSION IN EASTERN EUROPE:

Aeroflot began scheduled flights on the route Moscow–Tivat–Moscow.

EXPANSION IN WESTERN EUROPE:

Aeroflot and KLM expanded their cooperation under a code-sharing agreement on the route Moscow–Amsterdam–Moscow.

EXPANSION IN ASIA:

It was decided to open Aeroflot representative offices in 2012 in the cities of Ho Chi Minh (Vietnam) and Guangzhou (China).

REASSIGNMENT OF ROUTES WITHIN AEROFLOT GROUP:

Aeroflot opened sales under its SU marketing code on the following Donavia routes: Sochi – Dushanbe – Sochi; Sochi – St. Petersburg – Sochi; Sochi – Tashkent – Sochi; Rostov-on-Don – Borispol – Rostov-on-Don; Rostov-on-Don – Prague – Rostov-on-Don; Rostov-on-Don – Dubai – Rostov-on-Don; Rostov-on-Don – Istanbul – Rostov-on-Don; etc.

Aeroflot introduced a scheduled service to Cancun in Mexico.

MODERNIZATION AND EXPANSION OF THE AIRCRAFT FLEET

Aeroflot added a number of new aircraft to its fleet during 2011: eight А320s and four A330s built by Airbus, as well as four Sukhoi SuperJet 100s (SSJ 100).

OPERATIONAL LAUNCH OF THE LATEST RUSSIAN-BUILT AIRCRAFT:

The new SSJ 100 regional jet made its maiden flight in Komsomolsk-on-Amur. The first aircraft, with registration number RA-95008 was named in honor of the distinguished pilot and Hero of the Soviet Union, Mikhail Vodopyanov.

Aeroflot made its first scheduled flight using the SSJ 100 on the Moscow – St. Petersburg route.

FLEET EXPANSION:

Aeroflot and Boeing signed an agreement for purchase of 16 new Boeing 777-200ER/300ER aircraft (deliveries will begin in the fourth quarter of 2012).

Aeroflot and the State Corporation Russian Technologies have made a framework agreement for operating lease of МS-21 aircraft (to begin in 2017).

The Board of Directors of PJSC Aeroflot approved a financial lease deal for three Airbus A330-300 aircraft.

RAISING SERVICE QUALITY

A new and fair baggage allowance system has been introduced on all routes based on item numbers. The new system is standard for all carriers in the SkyTeam alliance and supports integration of Aeroflot’s service quality.

Aeroflot has substantially renewed, expanded and improved the quality of its in-flight wine and champagne selection for business-class customers, based on the recommendations of leading international wine experts.

New levels of quality have been achieved in Aeroflot’s in-flight entertainment programme. The audio and film programme included feature films, popular serials, cartoons, news, sport and car reviews, documentary films and television shows, popular games, video clips, music and audio books. The entertainment programme offered a total of 200 different items.

The in-flight menu was continuously refreshed during 2011, including a special menu for passengers observing religious fasts (particularly Lent).

Aeroflot introduced a new “Business Pass” service for 11 destinations. The service offers a multi-ticket, which can be used for several return journeys on a selected route.

INNOVATION DEVELOPMENT

Aeroflot won a special prize for best application of a SAP innovation product in the transport sector. The award ceremony was held as part of the Sapphire-2011 international business forum in the Spanish capital, Madrid.

Aeroflot announced an “idea bank” competition for innovative ideas and rationalization proposals.

A system of independent registration for Aeroflot flights via mobile telephone was brought into operation at Munich Airport in Germany. In the course of 2011 the system was in operation at airports in Prague, Larnaca, Frankfurt, Dusseldorf, Hamburg and Hannover. By spring 2012 the service was also operating at airports in Amsterdam, Oslo, Riga, Copenhagen, Budapest, Stockholm and Nice.

GROUP MANAGEMENT IMPROVEMENTS

The Board of Directors of Aeroflot approved an updated development strategy, targeting transformation of Aeroflot by 2025 into a global network carrier and one of the world’s leading carriers by volumes of passenger traffic.

Aeroflot completed a transaction for sale of 100% of shares in its subsidiary CJSC Nordavia.

TRAINING AND IMPROVEMENT OF STAFF QUALIFICATIONS

Aeroflot opened its Aviation School, which provides training for the personnel of Aeroflot and other carriers in 120 aviation-related specialities.

Pilots of Aeroflot’s newly acquired SSJ 100 aircraft began their training programme at CJSC Sukhoi Civil Aircraft.

Aeroflot began training personnel of its own Ground Support Department, personnel at Sheremetyevo Airport, and specialists at LLC Northern Capital Air Gateway (Pulkovo Airport) in ground handling of SSJ 100 aircraft.

Aeroflot took delivery of a full flight simulator for the new generation of FFS A320 aircraft (7000 series), made by the Canadian company, CAE Inc.

The Aeroflot training complex took delivery of a new door trainer, the DT A321/320, built by the UK company, RP Aero System, for training of А320/321/319 cabin crew.

SAFETY

Aeroflot successfully passed its fourth regular IOSA compliance audit (IATA operating safety audit).

A Situation Center was set up at the Aeroflot office complex in Melkisarovo to ensure efficient and rapid decision-making in all types of crisis situation. The Center is the only one of its kind in the Russian aviation sector and uses the latest technologies, innovative design, the most modern equipment and specially designed software.

Test trainings on crisis management procedures using the new Situation Center were carried out at Terminal D of Sheremetyevo Airport.

SOCIAL RESPONSIBILITY

The CEO of Aeroflot, Vitaly Saveliev, and the President of the Russian Olympic Committee, Alexander Zhukov, signed an agreement on air carriage for the Olympic delegation of the Russian Federation to the 30th Olympic Games (2012) in London, UK.

The 10th Aeroflot Open Chess Tournament was held in Moscow with the support of the Association of Chess Federations and the Russian Chess Federation.