1 August 2019, Moscow. — PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a meeting of the Board of Directors held on 31 July 2019. The meeting was held by absentee vote.
The meeting convened with the new composition of the Board, approved at the Annual General Meeting of shareholders on 25 June 2019.
Evgeny Ditrich, Minister of Transport of Russian Federation, First Class State Adviser of the Russian Federation was elected Chairman of the Board of Directors of PJSC Aeroflot.
Under the new edition of PJSC Aeroflot's Charter and Regulations, approved by the Annual General Meeting of shareholders on 25 June 2019, a position of Deputy Chairman of the Board of Directors was introduced in the Board of Directors. Members of the Board of Directors elected to the post Mikhail Poluboyarinov, First Deputy Chairman and Member of the Management Board, Vnescheconombank (VEB).
Alexey Melekhin, Head of Aeroflot’s Corporate Governance Department, was reappointed as executive secretary of the Board of Directors. He has been fulfilling the functions since 2011.
The agenda included the following items:
Results of implementation of Aeroflot Group consolidated budget targets for 1Q 2019. Passenger traffic of the Russian airline market including foreign carriers of 1Q 2019 totalled 28.1 mln people. Aeroflot Group’s market share increased by 2.4 p.p. versus 1Q 2018 and amounts to 45.4%. Growth rate of key operational metrics of the Group for the period exceeded that of international competitors. Financial results of 1Q 2019 proved the effectiveness of the management’s agenda to introduce initiatives to mitigate negative external factors.
Auditor’s report on PJSC Aeroflot 1Q 2019 IFRS results. Auditor’s procedures by JSC “PricewaterhouseCoopers” to review the effect of transition to the new IFRS 16 standard haven’t revealed essential misstatements in the condensed consolidated Aeroflot Group interim financial statements prepared in accordance with IFRS.
Implementation of Aeroflot Group’s long-term development program and that of 1Q 2019 KPIs. The long-term development program is being successfully implemented. Key program initiatives aimed at the achievement of Aeroflot Group’s strategic goals (incl. the development of network, fleet and operational assets, labour efficiency enhancement and operational costs reduction) have been implemented. Overall, 1Q 2019 KPIs have been implemented with excess.
PJSC Aeroflot incentive scheme. Results of KPIs implementation of Aeroflot Group’s long-term development programme /PJSC Aeroflot CEO for 1Q 2019 have been approved.
Procurement in 1Q 2019. Airline business particular features impede tender-based procurement on many occasions (airport services, ATC, meteorological forecast provision, aviation security and some others). Despite this specifics of the aviation industry there has been an upward trend in tender-based procurement procedures. Procurement at small- and medium-sized enterprizes posted significant growth in 1Q 2019. Against 1Q 2918, procurement at small- and medium-sized enterprises in value terms increased 4.2 times. To further facilitate access by small- and medium-sized businesses to procurement executed by Aeroflot Group it was decided to draw up amendments to Provisions on procurement of goods, jobs and services by PJSC Aeroflot and its subsidiaries relating to determining applicability of factoring concession clause within the framework of fulfilment of contracts with small- and medium-sized enterprizes.
Aeroflot is Russia’s flagship carrier and a proud member of the SkyTeam global airline alliance. Aeroflot serves 159 destinations in 54 countries.
Aeroflot’s 250-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 eighth time at the 2019 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/