MOSCOW, 22 JUNE 2015. — Aeroflot (Moscow Exchange ticker: AFLT) today held its Annual General Meeting of shareholders (AGM). Shareholders elected the new composition of the Board of Directors and adopted decisions on the other agenda items.
The AGM approved a motion not to declare and not to pay a dividend on ordinary shares of JSC Aeroflot for the 2014 financial year. The resolution followed the recommendation of Aeroflot’s Board of Directors and is fully compliant with the Company’s Dividend Policy, which establishes the consolidated net profit of Aeroflot Group under IFRS as the basis for calculating dividends.
Aeroflot achieved optimal financial results given the crisis currently affecting the Russian economy. The Company’s results are significantly affected by external factors. In 2014 Group revenue increased by 9.9% year-on-year to RUB 319.8 billion. The net loss for 2014 was RUB 17.1 billion.
The key outcome of 2014 for the Company was significant growth of its operating results. For the third year in succession, Aeroflot ranked among Europe’s five biggest airlines by RPKs and ASKs, and is the only Russian company in the top five (according to Airline Business). In 2014 Aeroflot was twice ranked the world’s most punctual airline by FlightStats.
Work continued on strengthening the integration of subsidiaries into Aeroflot Group and to develop regional flights. Pobeda, the Group’s low-cost carrier subsidiary launched in 2014, is the first successful carrier using a classic budget model in Russia.
Aeroflot is continuing to work with the government to update Russia’s commercial aviation legislation. Amendments were made to the Russian Air Code to improve conditions for air carriers in Russia, including in the low-cost segment.
In 2014, Aeroflot strengthened its position as Russia’s leading carrier and one of Europe’s most successful airlines, with significant successes across its operations. In total, Aeroflot received 30 Russian and international awards, and scored highly in a number of authoritative ratings.
Aeroflot continued to deliver on its strategic goal of being one of Europe’s top-five carriers and among the world’s top 20 by revenue and RPKs. The Group’s core priorities remain the further profitable growth of its operating results and to strengthen its position as a leader on quality of service among Europe’s airlines. Aeroflot Group’s development strategy for 2016-2020 has been updated, and its long-term goals and strategy for delivering them have been approved:
- adaptation of the multi-brand platform to current market conditions;
- further development of the low-cost carrier segment;
- focus on efficiency;
- cost control.
The key goals facing Aeroflot Group are to make air travel more accessible and increase Russians’ ability to travel, and to continue delivering sustainable growth while remaining resilient to external factors.
Resolutions of the AGM of JSC Aeroflot
The AGM approved the annual report for 2014 and the annual financial statements including the profit-and loss statements for the 2014 financial year. The AGM also approved the recommendation of the Board of Directors regarding distribution of net profit based on the results of the 2014 financial year, as well as the Company’s participation in the Aviation Mobility and Aviation Technologies association.
The AGM also approved related-party transactions including transactions that may be entered into in future as part of the Company’s regular course of business. A transaction was approved to transfer 13 Boeing 737-800 aircraft to Pobeda on a long-term sublease.
The following five members of the Audit Commission were elected:
Igor Belikov, director of the Russian Institute of Directors;
Marina Mikhinina, advisor to the director of the Federal Agency for State Property Management;
Ekaterina Niktina, advisor to the president of JSC Transneft;
Pavel Fradkov, deputy director of the Federal Agency for State Property Management;
Alexei Shchepin, secretary to the Board of Directors of Sovcomflot.
Shareholders elected the members of Aeroflot’s Audit Commission and appointed JSC BDO Unicon as Aeroflot’s Auditor for 2015. The AGM approved the remuneration of members of the Board of Directors and Audit Commission.
At the AGM, shareholders approved revised versions of:
- Aeroflot’s Articles of Association;
- Regulations on the General Meeting of Shareholders;
- Regulations on the Board of Directors;
- Regulations on the Management Board;
- Regulations on the Audit Commission;
- Regulations on Remuneration and Compensation of Members of the Board of Directors;
- Regulations on Remuneration and Compensation of Members of the Audit Commission.
The AGM elected Aeroflot’s Board of Directors members as follows:
Mikhail Alexeev, Chairman of the Management Board of JSC UniCredit Bank;
Kirill Androsov, Managing Partner of Altera Capital;
Igor Kamenskoy, Managing Director of Renaissance Capital — Financial Consultant;
Marlen Manasov, businessman;
Roman Pakhomov, CEO of Aviacapital-Service;
Dmitry Peskov, Director at the Strategic Initiatives to Promote New Projects non-profit;
Vitaly Saveliev, CEO, JSC Aeroflot;
Dmitry Saprykin, Deputy CEO for Sales and Property Matters, JSC Aeroflot;
Vasily Sidorov, CEO of LLC ARIDA;
Yuri Slyusar, President of JSC United Aircraft Corporation;
Sergei Chemezov, General Director of State Corporation Rostec.
Aeroflot Press Service
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Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2014, Aeroflot carried 23.6 million passengers (34.7 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 160 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 sixth time in 2015, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant. In 2015 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the fourth time. Find more at www.aeroflot.com.