December 21, 2011, Moscow– JSC “Aeroflot” Board of Directors ordinary meeting was held today.
The Board of Directors considered and approved capital expenditures plan in sum of 3,170 bln rubles for 2012. The affirmed growth rate of capital investments totaled 30% compared to the planned value of 2011. Innovation projects of the company were considered especially. About 10% (316 mln rubles) of total capital expenditures plan was decided to be assigned for Research and Advanced Development.
The Board of Directors considered the participation of JSC «Aeroflot” in airline alliance SkyTeam. The company is acting as a member of which from 2006. Due to implementation of bilateral arrangements Aeroflot gained significant benefits for developing network routes. Thus company added 62 new destinations, 566 frequencies and 8230 connections. Aeroflot expands the range of services significantly being a member of alliance, preliminary for frequent travelers. Economic effect for JSC “Aeroflot” participation in alliance is expected in sum of $18.4 mln that is 12% more compare to the 2010. The Board of Directors approved the necessity of further relations development between JSC “Aeroflot” and SkyTeam alliance.
In accordance with needs of the Company in medium-haul aircraft the Board of Directors approved lease transaction of 5 aircraft A320-200 between JSC “Aeroflot” and RBS Aerospace Limited.
Delivery schedule of 5 aircraft was set from April 2013 till March 2014. Lease term – 10 years starting from the delivery date.
Management proposals on hedging jet fuel prices as an instrument of decreasing costs of JSC “Aeroflot” were considered. The Board of Directors approved management’s approach on jet fuel hedging.
The Board of Directors considered actions aimed to increase liquidity of global depositary receipts of JSC “Aeroflot” – a security issued by bank that represents a foreign company's publicly traded securities. Currently the GDR price of JSC “Aeroflot” is one of the most that cause negative effect for investment potential. Meanwhile Company aims to increase investment attractiveness of depositary receipts and spread investor base. Thereforeitwas decidedto:
The Board of Directors took a decision to consider the program for increasing capitalization of the airline in the first quarter of 2012 by means of financial instruments.
Aeroflot - Russia’s leading air carrier, member of the global SkyTeam alliance with a consolidated route network covering 926 destinations in 173 countries. In 2010, Aeroflot carried 11.3 million passengers, thus passenger traffic of Aeroflot Group totaled 14.1 million passengers.
Aeroflot is one of the most fast-growing airlines in the world according to SkyTrax. Besides company got the prestigious international SkyTrax World Airline Awards as "The best Eastern European Airline"
Aeroflot is the one of the world top 25 airlines ranked by for financial and economic results according to Air Transport World magazine (“operating profit” and “net profit” category) in 2010.
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 operates one of Europe’s youngest air fleet that consists of 112 aircraft. Aeroflot is located in Sheremetyevo International Airport, Moscow. Find more at www.aeroflot.ru.