March 11, 2013 Moscow
JSC “Aeroflot” Board of Directors ordinary meeting was held chaired by Kirill Androsov.
The Board of Directors considered the question on the results of operating, financial and commercial activities of JSC “Aeroflot” and 2012 budget execution according to managerial accounting data. The fact that the Company confirmed its leadership in Russian Civil Aviation market according to the key parameters, thus securing the necessary potential for further dynamic development, was outlined. Practically all target indicators in 2012 plan were fulfilled. Upon that Company’s operating indicators growth dynamics exceeded that of Russian Civil Aviation on an industry-wide basis. In 2012 the Company achieved a new record in its contemporary history having carried 17,656 thousand passengers, which is 24.6% more than in 2011. Passenger turnover amounted to 50.53 billion pkm (+20.3% compared to 2011). 194 thousand tons of cargo and mail were carried (+20.8%). Flight hours of Company’s aircraft totaled 460.7 thousand hours, increasing by 17% compared to 2011. Seat load factor amounted to 77.9%, exceeding planned figure and last-year result due to effective capacity management. According to preliminary managerial accounting data planned financial targets were also exceeded in 2012. The Board of Directors noted effective work of management in 2012.
The Board of Directors approved the transaction between JSC “Aeroflot” and JSC “VEB-Leasing” on finance lease of 10 new regional Sukhoi SuperJet-100 aircraft, manufactured according to JSC “Aeroflot” requirements (full specification). These aircraft are to replace 10 Sukhoi SuperJet-100s delivered earlier in basic configuration (light specification). The forthcoming replacement is aimed at higher effectiveness and degree of comfort of JSC “Aeroflot” aircraft fleet, which is of prime importance taking into account high-priority attention which the Company devotes to the qualitative rise of passenger service level. Delivery of new aircraft would take place from March 2013 to April 2014. The term of lease would not exceed 144 months for each aircraft.
Following the results of considering the question regarding JSC “Aeroflot” branches and representative offices the decision to liquidate the representative office of the Company in Vladivostok was taken. The decision to liquidate JSC “Aeroflot” branch in Vladivostok which had been taken in October 2012 was cancelled. Retaining the branch of the Company in Vladivostok was considered reasonable in the context of creation of Far Eastern Airline (DVA) as part of Aeroflot Group. Considerable and growing traffic volumes in the Far Eastern region as well as integration processes with subsidiaries and affiliates demand a unified approach to management and securing of effective service level.
The Board of Directors considered the question on the Key Performance Indicators (KPIs) of JSC “Aeroflot” CEO for 2013 and the motivation system. The decision to approve JSC “Aeroflot” CEO KPIs for 2013 and confirm general principles of the complex motivation system for Aeroflot Group management was taken.
Established in 1923 with a headquarters in Moscow, Aeroflot is Russia's flagship airline and the largest national air company. Proudly being a member of SkyTeam global airline alliance, Aeroflot with its partnering members provides service to 1000 destinations in 187 countries. Aeroflot operates one of the most modern and youngest fleets in Europe counting 130 aircraft formed by Airbus, Boeing and Sukhoi airliners with an average airplane age of 5 years. In 2011 Aeroflot carried more than 14.2 million passengers, showing the best result in modern Russia's history. In the same year Aeroflot was honored with a prestigious international SkyTrax World Airline Award as 'The best airline in Eastern Europe'.