December 20, 2012, Moscow– JSC “Aeroflot” Board of Directors ordinary meeting was held today chaired by Kirill Androsov.
The Board of Directors considered the question on Far Eastern Airline which is planned to be created within Aeroflot Group. Such a carrier would be a powerful catalyst for social and economic development of a vast region and would strengthen positions of the Group in the region on the whole. High development dynamics of the Russian Far East implies good prospects for Far Eastern Airline (DVA) operations. The priority development path of the Far Eastern Airline is meeting demand for regional carriages while securing effective level of passenger service. The Board of Directors approved scenario for creation and development of Far Eastern Airline on the base of JSC “SAT Airlines”. The Board of Directors requested the Management of the Company to apply to Federal Executive Bodies for guarantees on subsidies securitization for Far Eastern Airline creation. Upon that the impossibility of effective Far Eastern Airline without various forms of state support of regional carriages was outlined.
The Board of Directors considered the project of consolidated budget of Aeroflot Group according to IFRS for 2013. Substantial growth of main operating indicators is expected during the next year. Aeroflot Group plans to increase passenger traffic from 27.7 mln passengers expected in 2012 to 33.0 mln passengers in 2013. In such a manner the growth of passenger traffic figures is planned at 19% rate. Passenger turnover is expected to reach 92.3 bln passenger-kilometers (+23%). The growth is expected to be fueled by optimization of operating activities. In 2013 JSC “Aeroflot” plans to add new Boeing 777 and 737, Airbus A-320 and A-321. Substantial renewal of a number of subsidiaries’ fleet is also expected. The Group has a surplus budget for 2013. The total revenue of the Group in 2013 is expected to reach 9.56 bln US dollars, out of which traffic revenue amounts to 8.5 bln US dollars. Revenue from core activities is expected to amount to 89% of total revenue of the Group. Optimization possibilities for certain costs of Aeroflot Group, which can enhance the effectiveness of business, were outlined. The Board of Directors approved the consolidated budget of Aeroflot Group according to IFRS.
The Board of Directors decided to cease shareholding of JSC “Aeroflot” in CJSC “Aerofirst” by selling 200 ordinary registered uncertificated shares of the company owned by JSC “Aeroflot”.
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 128 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'.