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Company News

07 February 2019

Aeroflot announces results of Board of Directors meeting

7 February 2019, Moscow — PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a meeting of the Board of Directors held on 7 February 2019. The meeting was chaired by Evgeny Ditrich.

The following agenda items were discussed during the meeting:

PJSC Aeroflot flight safety in 2018. In 2018, Aeroflot's flight safety performance came in at 99,974%; the CEO’s KPI in this area was achieved. The findings per inspection ratio, as per the EU Safety Assessment of Foreign Aircraft (SAFA) programme, improved this year for both PJSC Aeroflot and Aeroflot Group.  The maximum permissible (threshold) level of this indicator is 2 units, and the lower the level, the better the situation with the safety of flights in the airline. In 2018, PJSC Aeroflot's SAFA ratio amounted to 0.3, while the Group's SAFA ratio was 0.24.  In 2017, SAFA ratio was at the level of 0.45 for both the Company and the Group. The score calculated using European Aviation Safety Agency's methodology demonstrates remarkable progress in the Company's flight safety. The Board designated key activities for 2019 to improve the safety of PJSC Aeroflot flights.

Service enhancement at Aeroflot Group. Aeroflot – Russian Airlines has successfully confirmed its Skytrax 4-Star Airline rating, thereby maintaining its global market leadership.  In 2018, the Company implemented a number of service improvement initiatives.  In particular, the onboard meal concept has been changed for Business Class passengers – a number of flights now feature a new dinner menu.  A new design was introduced for the food and wine menus. The Company has equipped 26 Airbus A320 aircrafts with a streaming multimedia entertainment system. Passengers flying in Economy can now take advantage of a new À la Carte Menu paid service for flights over 7 hours by purchasing this service when booking tickets online.  Aeroflot has transfered domestic flights to the new Terminal B at Sheremetyevo International Airport that serves as the Company's hub.  Wide-body Boeing 777-300 aircraft have been upgraded to improve service quality and cost-effectiveness. Aeroflot Group subsidiaries are also implementing a number of improvements.   In particular, Rossiya has been implementing Business Class improvements that aim to enhance the quality of services on prioritized Russian Far East flights.

Aeroflot Group ancillary revenue. The Group is posting a growth trend in ancillary revenue, its absolute volume and its share in the revenue structure of Aeroflot Group.   Across the Group, new sources of ancillary revenue are being developed and rolled out. Increase of ancillary revenue sources has been taking place within "fare families". Introduction of new paid-for services – such as choosing a seat before check-in and a new À la Carte Menu – has had a positive effect.  The "Additional services" section of Aeroflot's mobile application is also in high demand.   According to the results, PJSC Aeroflot's share of ancillary revenue is in line with international best practice of traditional airlines. The Group intends to continue to expand the share of ancillary revenue in its overall revenue.

Shareholder and investor relations. In addition to ongoing investor relations activities, a number of initiatives were undertaken to improve information disclosure:  the Company has transitioned to quarterly disclosure of IFRS results, published its first set if first quarter IFRS results, as well as organized in collaboration with United Aircraft Corporation (UAC) a presentation of the new MC-21 Russian passenger aircraft to investors and analysts. An analysis of capital markets and traded companies has demonstrated that global airline stocks, including those of PJSC Aeroflot, were under pressure from higher fuel prices – a key expense item for airlines. In addition to market-wide trends, the Board of Directors discussed analyst reports and the Company’s new Growth Strategy for the period through 2023, as well as the results of s shareholder identification study and a perception study of the Group’s equity story.  The results of 2018 were summed up and the work plan for 2019 was approved. 

PJSC Aeroflot’s incentive system. The list, weight and targets of KPIs for Aeroflot Group’s Long-term Development Programme and PJSC Aeroflot’s CEO for 2019 were approved.

Implementation of Aeroflot Group’s Innovative Development Programme. Development of Aeroflot Group's Innovative Development Programme (IDP) 2018 edition was completed.  In 2019, Aeroflot Group's Innovative Development Programme will need to be updated in accordance with new methodological requirements, as well as activities and targets of national projects and programmes. The Board of Directors decided to approve the submitted version of the Innovative Development Programme. An apdated version of the Programme will be presented to reflect instructions from the Council for Economic Modernization and Innovative Development of the Russian Federation.

About Aeroflot

Aeroflot is Russia’s flagship carrier and a proud member of the SkyTeam global airline alliance. Aeroflot serves 152 destinations in 55 countries.

Aeroflot’s 253-strong fleet is the youngest of any airline worldwide that operates more than 100 aircraft. In 2018, Aeroflot carried 35.8 million passengers (55.7 million passengers as Aeroflot Group including subsidiaries).

Aeroflot holds 4-Star Airline status from Skytrax and was named Best Airline in Eastern Europe for the seventh time at the 2018 Skytrax World Airline Awards. Aeroflot has also been awarded a five-star global airline rating by US aviation association APEX.

Aeroflot is the world’s strongest airline brand according to leading brand strategy consultancy Brand Finance.

 

Find out more at http://www.aeroflot.com/