27 October 2005, Moscow - The Board of Directors of Aeroflot, JSC considered the issue of 'Implementing a quality management system (QMS) in certain divisions of the Company' on October, 26.
During the discussion, it was pointed out that the development and implementation of QMS complying with the ISO 9001 requirements has resulted in reduced expenses and increased carrier management efficiency. The QMS requirements include internal monitoring, performance assessment of divisions and individual employees and control of compliance with the established standards and rules, audit of the company's partners and suppliers. In all Aeroflot divisions participating in QMS, certification audit has been carried out and ISO 9001-2000 compliance certificates issued.
The Russian Federal Transportation Supervision Service has inspected the major facilities of Aeroflot and recommended the company's QMS implementation pattern for other Russian longhaul carriers to follow. QMS implementation on 17 October contributed a lot to the successful IATA IOSA auditing results (IATA requires that all its members have operational safety audit carried out by year 2006). The same requirement is imposed by the Sky Team alliance. QMS implementation includes installation of Risk Management system to ensure security of the flights. Uniform safety and quality database and its integration into the company's risk management system will facilitate the comprehensive standard analysis, distinct correction and prevention monitoring, and will enhance the company's performance and the strategy implementation in general.
The company's Board of Directors approved of the QMS implementation pattern adopted in the company, as well as the development and installation of the uniform database to ensure quality management of the carrier and operational safety.
BOD of Aeroflot approved of the following priorities in risk management and aviation risks insurance for year 2006:
- continuous enhancing of efficient insurance strategy of the company;
- hedging of aviation fuel and lubricants;
- credit risk management for sale of aircarrier services;
- budgeting and economy programme for the main yearly budget items;
- risk coverage for construction works at the new Airport terminal Sheremetyevo-3 and the new administrative office of Aeroflot;
- further development of the risk management programme to ensure flight security and compliance with IOSA, IATA and Sky Team requirements.
The BOAD also endorsed the lease of five new aircrafts A320-200 belonging to RBS Aerospace Limited by Aeroflot. The aircrafts will start operation in September-June 2007 and will remain in the company for 10 more years.
The BOD meeting approved of the recommendations of the BOD Strategy Committee related to consolidation of aviation industry, the task entrusted by the BOD to the company's executives and experts who will cooperate with relevant federal authorities and Russian enterprises of commercial aviation.