The Board of Directors

05 May 2010

Moscow, June 4, 2008 – The Board of Directors of OJSC Aeroflot reviewed the 2007 business results of its subsidiaries during its regular meeting. As per January 1, 2008, Aeroflot holds shares in 27 companies including 10 wholly-owned companies. It was established that the earnings of companies in which Aeroflot holds shares increased in 2007 by 38.6% over the previous year. Aeroflot's earnings rose accordingly by 34%.

The Board looked into a project to establish a separate Aeroflot aviation school. Implementation of this project would be of advantage since the company will need an increasing number of flight personnel in view of the planned fleet expansion, given that at present there are only limited possibilities to train pilots on state-of-the-art aircraft. The pilots training programme of the Aeroflot aviation school is based on the standards of the Russian Federation and the recommendations of the International Civil Aviation Organization (ICAO).

The training programme boasts state-of-the-art training methods for flight personnel and provides top-level simulator and flight training. The project will also provide personnel training based on economic criteria, enabling the company to turn a profit on the sale of the aviation school's services to external organisations and individuals. The main project partners of Aeroflot will be the two wholly-owned Aeroflot subsidiaries "Aviabusiness" – a higher commercial school - as well as the CJSC "Aeroflot Plus". In the course of this project, it is planned to closely co-operate in the fields of methodology and practice with civil-aviation state training centres.  Towards the implementation of the business plan for this project, the Board approved the establishment of an Aeroflot subsidiary with an authorised capital of EUR 10 million and gradual investment of up to EUR 16 million in this project.

The Board also approved 3 leasing contracts for 19 new aircraft of the type A320, to be delivered between 2009 and 2013. The acquisition of the new aircraft will enlarge the current pool of type A320 aircraft (36 as per June 1, 2008 with 20 contracted. The scheduled delivery dates for the approved aircraft are consistent with the period of decommissioning of outdated type TU-154 aircraft.

The Board also reviewed the company's results for the first quarter of 2008. In the first quarter of 2008, Aeroflot transported 1.993 million passengers over a total of 5.879 billion passenger kilometres Seat capacity utilisation came to 66%; in cargo transport, a capacity utilisation of 52% was achieved. In the first quarter, volumes increased over the previous year: in passenger transport, by 16.8% (+ 286,000 passengers) and in passenger turnover, by 11.3% (+ 596.7 million passenger kilometres)

The Internet site now offers the possibility to book air tickets for Aeroflot flights and pay for them online by way of e-ticketing; in addition the website offers further information about the airline.

The Public Relations Department