June, 29, 2011, Moscow – The Annual and Extraordinary General Meetings of the Shareholders of JSC “Aeroflot – Russian airlines” were held today.
In the course of last two years Aeroflot demonstrated a stable improvement of financial indicators. In spite of considerable downturn in the air transport industry during 2008-2009, the company is continuing to improve profitability.
2010 was the first year Aeroflot reached the first place by domestic passenger turnover, carried 4.16 mln. passengers, which is higher compared to other airlines of Russian civil aviation.
By the end of 2010 the market share of Aeroflot stand alone and Aeroflot Group by passenger turnover on Russian Civil Aviation totalled 23.7% and 26.7% respectively. As for 2010 Aeroflot carried 11.3 mln passengers and 163,000 tonnes of freight and mail, using more than 97,000 of scheduled and charter flights.
In accordance with Russian Accounting Standards company’s revenue in 2010 amounted for 114.5 bln. rub., which is 30.6% more than in 2009. Operating profit improved by more than two times and reached 12.291 bln. rub. Profit before tax totalled 15.008 bln. rub., which is 3.3 times more compared to 2009 result. Net profit increased 7.8 times and reached 12.051 bln. rub.
Aeroflot’s market capitalisation grew by 49% to 87.9 bln. rub. (USD 2.89 bln.) in 2010. MICEX included Aeroflot’s shares in the list of top 10 most profitable securities in 2010. Estimates of investment analysts also confirm the investment appeal of Aeroflot. Share price upside potential is about 30%. Financial stability of the company is confirmed by Fitch rating agency affirming the rating BB+/Stable.
The brand of Aeroflot is one of the most recognisable in Russia and abroad. The company is the first Russian airline that conducted brand evaluation. At the end of 2010 this indicator was $1,086 bln. Therefore, Aeroflot entered top 20 of the most expensive airline brands in the world. Evaluation was affected by Britain company Brand Finance, which is the world know authority on brand rating.
The number of carried passengers on domestic airlines increased by 28.9% in 2010, which is significant breakaway from local airlines.
The most significant event for the company development in 2010 was the decision of Government of the Russian Federation to integrate six airlines owned by State Corporation “Russian Technologies» into Aeroflot Group, which are JSC “Vladivostok Air”, OJSC “Saratov Airlines”, JSC “Rossiya Airlines”, JSC “OrenAir”, State Unitary Enterprise “Kavminvodyavia”.
During 2010 Aeroflot continued to extend its fleet. The company received two A330, three A320 and two A321, increasing the overall amount of the above mentioned aircraft in the company fleet to 10, 35 and 18 respectively. The Board of Directors approved creating of non-state education establishment “Aeroflot Aviation School” based on Air Staff Training Department and non-state education establishment HCS “AirBusiness”.
Long haul route network was expanded in winter schedule 2010/2011, including new scheduled flights to Goa (India), Phuket (Thailand) and Punta Cana (Dominican Rep) as well as resumption of scheduled flights to Maldives (Male) and Indonesia (Denpasar). Moreover, the route network was extended due to additional flights Moscow - Tel-Aviv - Moscow in August, Moscow-Kazan-Moscow in September last year.
Innovation development committee under the Executive Board was created in 2010. Besides conception of innovation evolvement was developed. It is formed for the medium-term period (5-7 year). Conception takes into account priorities of government research and technologies and innovative policies and includes action plan, directed for implementation of new technologies and innovative products comply with worldwide quality.
The Annual General Meeting of the Shareholders of JSC “Aeroflot – Russian airlines” affirmed company annual report, annual financial statements in accordance with Russian Accounting Standards, including profit and loss statement and the recommendation of the Board of Directors regarding to the net profit distribution. According to the conclusion of the Revision Commission annual financial statements of the company and data contained in the 2010 annual report of JSC “Aeroflot” are recognized as precise. The Meeting approved new composition of the Revision Commission. CJSC “BDO” is affirmed as auditor of JSC “Aeroflot” for 2010.
Dividend in amount of 1.0851 rub. per share was confirmed by the Annual General Meeting of the Shareholders. The payments will be made during the period from 30.06.2011 to 28.08.2011.
Extraordinary General Meeting adopted new composition of JSC “Aeroflot” Board of Directors.
The new Board of Directors of JSC “Aeroflot” composed of the following 11 candidates:
The list of JSC “Aeroflot” Board of Directors candidates:
Aleksashenko Sergey Vladimirovich – director of microeconomic research at the Higher School of Economics;
Androsov Kirill Gennadevich - independent expert, Managing partner in investment trust “Altera Capital”;
Dmitriev Vladimir Aleksandrovish– chairman of State Corporation “The Bank for Development and Foreign Economic Affairs (Vnesheconombank)”;
Dushatin Leonid Alekseevich– deputy general director of CJSC “National Reserve Corporation”;
Levin Kirill Yurevich– deputy chairman of Management board of “Russian Agricultural Bank”;
Nikitin Gleb Sergeevich– deputy head of Federal Agency for Management of State Property;
Saveliev Vitaly Gennadevich– general director of JSC “Aeroflot”;
Saprykin Dmitry Petrovich– JSC “Aeroflot” deputy general director for legal and property affairs;
Stolyarov Andrey Viktorovich– deputy general director “UniCredit Aton”;
Tikhonov Aleksandr Vasilevich– Minister of Trasportation department director;
Chemezov Sergey Viktorovich– Director General of the Russian Technologies State Corporation;
Aeroflot - Russia’s leading air carrier, member of the global SkyTeam alliance with aconsolidated route network covering 898 destinations in 169 countries. In 2010, the Aeroflot Group carried 14.07 million passengers.
Aeroflot is the first Russian carrier to have entered the IOSA Registry, and to have regularly confirmed the certificate. Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The company’s Quality Management System is certified for compliance with ISO 9001:2008.
Aeroflot enters the world top 25 airlines by Air Transport World magazine for financial and economic results (“operating profit” and “net profit” category) in 2009
Aeroflot operates one of Europe’s youngest air fleets that consists of 101 aircraft. Aeroflot is based in Moscow, in Sheremetyevo International Airport. Find more at www.aeroflot.ru.
Department of public relations and liaison with governmental bodies.
