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Company News

10 July 2006

Aeroflot renewed its flight risk insurance policy

Aeroflot has renewed its flight risk insurance policy with 12.0% discount in comparison with the previous policy period.

The renewed flight insurance policies of Aeroflot meet all the requirements of the aviation authorities of the countries, engaged into the airline company’s routes, and correspond to Montreal convention requirements as regards to insurance of air carrier’s liability for its passengers. Aeroflot current liability limits also meet the requirements of the Sky Team international alliance, partnering the airline, as well as the requirements of the alliance’s current members under the code-sharing agreements.

Direct risk insurance has been arranged, as before, by Moscow Insurance Company, Aeroflot Affiliate. Willis, which has been representing Aeroflot on the international market of flight insurance already for five years, has acted as the reassurance broker. The company’s current insurance broker, Willis, ranks first as the supplier of services on flight insurance over the world, providing the positioning on the international insurance market approximately to 31% of the large airlines.

Global Aerospace (Great Britain), which was the airline’s recognized leader in reassurance programs until 2004, has been again chosen as the dominating company arranging reassurance of the airline’s most significant flight policy (aircraft hull insurance and third party liability insurance as well as insurance of liability for the passengers).

The integral risk of Aeroflot – Russian Airlines has been assessed during the annual insurance inspection, performed by the leading reinsurers – representatives of the world dominating insurance companies, which have been able to study the company’s operation in detail. Aeroflot has provided the complete information in respect of all the risks to be insured to the dominating insurance companies – world leaders on the international market of flight insurance, so that they could make the expert assessment and calculate the insurance rates for the next period of the policy renewal.

Thanks to positive dynamics of flight safety, renewal of aircraft fleet, positive indicators of the company’s production and economic activities, membership in SkyTeam global airline alliance, implementation of IOSA program the company has managed to improve its positioning on the international market of flight insurance.

For the last four years the rate of the risk hull insurance of aircrafts has decreased by 116%. The rate of insurance liability, levied for each passenger, has dropped by 40% on the international lines and by 33% on the domestic lines. The total reduction of expenses for flight insurance for the last three years has amounted to 35% against the background of the increased volume of the company’s performance indicators, which are essential for calculation of the insurance value.

“Aeroflot – Russian Airlines”, JSC is based in Moscow, Russia, Sheremetyevo Airport. The company was founded in 1923. It is the largest carrier on the international and domestic lines, which accounts for 39% of international and 11% of domestic air transportation market in Russia. Aeroflot is the member of Sky Team global airline alliance, which has been acknowledged the world's best airline alliance by the readers of Global Traveler Magazine. In 2005 the airline carried 6.8 million passengers to 89 cities of 47 countries around the world. The net profit of the company in 2005 amounted to 6.032 billion RUR. Aeroflot makes 302 daily flights served by the fleet consisting of 88 aircrafts. You can learn more about Aeroflot on the Web at: www.aeroflot.ru and www.skyteam.com