MOSCOW, 02 DECEMBER 2014 — JSC Aeroflot («the Company», Moscow Exchange ticker: AFLT) announces the results of a meeting of the Company’s Board of Directors that took place on 2 December 2014, chaired by Kirill Androsov.
The agenda of the meeting included the following items:
On the implementation of Aeroflot Group’s Strategy through 2025 (long-term development programme). The Board of Directors confirmed the Group’s long-term strategic targets through 2025, in particular:
— Annual passenger traffic of above 70 million PAX;
— Ranked among the top-5 European and top-20 global airline groups by traffic and revenue.
The Board of Directors stated that the Group’s strategy (long-term development programme) including its details for 2015-2017 remains intact. However, certain areas of the programme require proactive optimisation. The Board resolved to update the Group’s 2025 strategy in line with recommendations of the Ministry of Economic Development and the Federal Agency for State Property Management.
The Board of Directors approved a draft of updated KPIs for 2015–2020 as part of Aeroflot Group’s Strategy through 2025 as well as KPIs for the CEO of JSC Aeroflot for 2015.
On Aeroflot Group’s consolidated budget for 2015 based on IFRS. The Board of Directors approved JSC Aeroflot’s operating and financial plans for 2015, JSC Aeroflot’s budgeted profit and loss plan for 2015-2017, as well as Aeroflot Group’s consolidated budget for 2015 based on IFRS.
Aeroflot Group expects moderate growth in its key operating metrics in 2015. In the course of the year, the Group’s total fleet is set to grow, mainly due to the expansion of JSC Aeroflot’s fleet with new Sukhoi Superjet 100 family aircraft and Boeing 737-800s.
On Aeroflot Group’s investment programme. The Board approved:
— The plan for capital expenditures and investments in software for JSC Aeroflot in 2015;
— Aeroflot Group’s investment programme for 2015-2017.
Aeroflot Group’s capital expenditure plan for 2015-2017 is covered entirely by the Group’s internal funding resources. The key areas of investment focus on enhancing the quality of customer service, growth in the airline’s market capitalisation, supporting operations and expanding the functionality of ERP systems.
On the implementation of provisions of the Code of Corporate Governance. The Board approved the plan of activities (roadmap) for implementing key provisions of the Code, aimed at improving Aeroflot’s corporate governance practices.
On JSC Aeroflot’s incentive system. Changes were introduced to the system, whereby employees are motivated to maximise the profit of Aeroflot Group. At the same time, the document took into consideration inflationary pressure on the Russian rouble and significant exchange rate fluctuations.
The Board of Directors approved the decision to contribute treasury shares of JSC Aeroflot, which had been purchased earlier from shareholders, to the charter capital of Aeroflot’s subsidiary Aeroflot-Finance LLC.
The meeting took the decision to approve a loan facility from JSC Aeroflot to JSC OrenAir.
The Board decided to carry out a project to transform and improve the efficiency of JSC Aeroflot’s internal audit system.
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Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2013, its 90th anniversary year, Aeroflot carried 20.9 million passengers (31.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve 1,052 destinations in 177 countries worldwide. Aeroflot operates the youngest fleet in the world (among the major airlines), numbering 154 Airbus, Boeing and Sukhoi airliners. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the fifth time in 2013, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant. In 2014 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the third time. Find more at www.aeroflot.com.