The Board of Directors of JSC “AEROFLOT”

02 December 2011


November 24, 2011, Moscow– JSC “Aeroflot” Board of Directors ordinary meeting was held today.

The Board of Directors considered the preliminary results of operating and financial activities of the company for 9 month 2011. The plan for the specified period has been fulfilled and the growth rates of the company’s indicators outperformed sector’s average growth rates and outrun Aeroflot’s results of the previous year. Passenger turnover, passenger traffic and seat load factor totaled 10.54 mln passengers (+23.5% in comparison with 2010), 31.55 bln pkm (+20.2%) and 78.4% (+0.4 p.p.) respectively. The effective usage of carriage capacity was the main factor catalyst provided such positive effect. Aircraft flying hours increased by 20% compared to 2010. For 9 month 2011 net profit is expected to reach 9.167 bln rub (as per managing accounting based on Russian accounting standards for JSC “Aeroflot” stand alone).

Draft of the production and financial & economic plan and budget of JSC “Aeroflot” for 2012 have been considered. The airline means to increase volume of work done. Significant incrimination of the available seats was planned in Russia and CIS regions. The flight numbers should increase by 24%. The scheduled flights program will be supplemented by routes to Abakan, Blagoveshchensk, Orenburg, Tomsk, Ulan-Ude, Chita, Yakutsk, Naberezhnye Chelny, Kharkov (Ukraine), Alicante (Spain), Bologna (Italy), Krakow (Poland), Stuttgart (Germany), Tallinn (Estonia), Guangzhou (China), Vilnius (Lithuania). The number of fights will be increased on the following domestic routes to Anapa, Astrakhan, Nizhny Novgorod, Irkutsk, Kaliningrad, Samara, Kazan, Mineralnye Vody, Omsk, Novosibirsk, Surgut, Yekaterinburg, Ufa, Volgograd and international flights to Ashgabat, Bishkek, Kiev, Minsk, Simferopol, Samarkand, Malaga, Barcelona, Brussels, Bucharest, Dusseldorf, Madrid, Milan, Oslo, Prague, Riga, Stockholm, Tivat, Venice, Zurich, Cancun, Punta-Cana, Istanbul, Tel-Aviv, Colombo, Seoul, Ho Chi Minh.

The average growth rate of the main operating indicators according to the plan will reach about 20% in comparison with 2011. The comprehensive analysis of the factors and business conditions that can cause significant effect on JSC “Aeroflot” performance has been performed. According to the plan the net profit for JSC “Aeroflot” stand alone is expected to reach 1.045 bln rub in 2012 (in accordance with Russian accounting standards).

Board of Directors took a decision to open representative offices in Alicante (Spain), Dnepropetrovsk (Ukraine), Donetsk (Ukraine), Kharkov (Ukraine), Abakan, Blagoveshchensk, Novy Urengoy, Orenburg, Tomsk, Ulan-Ude, Chita, Yakutsk.

 As a part of the innovation development program the R&D plan was considered especially in terms of the strategic modernization issues. According to the plan funding of the R&D will compose 2% of company’s revenue (about 300 mln rub. in accordance with Russian accounting standardsfor JSC “Aeroflot” stand alone). The company expects long-term stable growth of R&D financing which is expected to reach 708 mln rub in 2020 (in accordance with Russian accounting standardsfor JSC “Aeroflot” stand alone). 

The top priority issues for activity in 2012 were determined as follows:

  • Flight safety and aviation security;
  • Flight regularity;
  • Service improvement. 

Innovation projects are assumed to be executed in collaboration with relevant universities, scientific organizations and entities of small and medium business. Therewith company’s internal project “Bank of ideas” has been started up.

Board of Directors considered procurement activity of JSC “Aeroflot” during 3Q2011. The active usage of competitive tendering and electronic trading floors has been pointed out. The share of electronic auctions performs positive dynamic and ranges within 98.7% - 99% of the total amount of tenders since the beginning of the year and. 

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

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