November 30, 2012, Moscow– JSC “Aeroflot” Board of Directors ordinary meeting was held today chaired by Kirill Androsov.
The Board of Directors considered the project of operating and financial activities plan of JSC “Aeroflot” standalone including capital expenditure plan of JSC “Aeroflot” for 2013. In the forthcoming year the leading Russian carrier is determined to preserve high growth rates securing strong competitive positions and leadership in the Russian Civil Aviation. The growth rate of main operating indicators is planned at an average of 20% to 2012 figures. Particularly in the forthcoming year JSC “Aeroflot” standalone plans to carry circa 21 mln passengers (19% more than in 2012). The main growth of revenue and costs is expected to be driven by higher volume of operations. Particular attention will still be paid to development of JSC “Aeroflot” as a premium-class service company. Provisions for additional costs amounting to 644 mln rubles for service improvement are made in budget estimates, in parts related to passenger catering improvement and additional services on board of the aircraft and in base airport. The capital expenditure plan of JSC “Aeroflot” standalone for 2013 is approved at 4,840 mln rubles (+69% to expected investments in 2012).
The question on the progress of Aeroflot Group strategy implementation was considered. The main aim of the strategy is to create a full-scale aviation group – a global player, which will be one of the TOP-20 airlines by 2025, providing sustainable growth and financial stability on all stages of development. Strategy-2025 clearly outlines the model of development and market segments for each of the Group’s companies as well as main areas of efforts concentration for management. In 2011-2012 more than 20 new scheduled flights were opened, the frequency for the key destinations was increased. The flight connectivity in the main hub of the Group, Sheremetyevo airport, was enhanced, loyalty program efficiency was increased. Aeroflot’s innovative Situation center and integrated center for operations planning and coordination was launched. The deficit of all types of aircraft was liquidated. Stable growth of revenue and net income is secured, KPI targets of the Group were achieved.
The Board of Directors paid close attention to the operations of the companies of Aeroflot Group, including financial liabilities of these companies. In particular the question on OJSC “Rossiya airlines” development strategy was discussed. Development of the route network would allow increasing the market share of the company in Pulkovo airport and providing synergy effect for Aeroflot Group on the whole.
Having discussed the question on JSC “Vladivostok Air” state of business, the Board of Directors specifically outlined the goal of effective integration of this airline in Aeroflot Group. The necessity of business efficiency increase, specialization on regional and interregional carriage, maintenance of leadership positions in passenger transportation market of the Far East, taking decisions on important social goals of transport accessibility enhancement and higher population mobility, securing access to the flight network of JSC “Aeroflot” and SkyTeam alliance was outlined. The intention to create Far Eastern Airline (DVA) on parity terms with the government was confirmed on behalf of JSC “Aeroflot”. JSC “Vladivostok Air” participation in the Far Eastern Airline was considered viable in order to secure strong positions for Aeroflot Group development in the Far East. Development of the route network would allow solving important social and economic issues of this region of Russia and becoming one of the leaders in Asia-Pacific Region.
The Board of Directors considered the question on Key Performance Indicators (KPI) of JSC “Aeroflot” CEO for 2013.
Established in 1923 with a headquarters in Moscow, Aeroflot is Russia's flagship airline and the largest national air company.
Proudly being a member of SkyTeam global airline alliance, Aeroflot with its partnering members provides service to 1000 destinations in 187 countries.
Aeroflot operates one of the most modern and youngest fleets in Europe counting 126 aircraft formed by Airbus, Boeing and Sukhoi airliners with an average airplane age of 5 years.
In 2011 Aeroflot carried more than 14.2 million passengers, showing the best result in modern Russia's history. In the same year Aeroflot was honored with a prestigious international SkyTrax World Airline Award as 'The best airline in Eastern Europe'.