Board Of OJSC “Aeroflot”

05 May 2010

On February 20 the Board of Directors of OJSC “Aeroflot” considered corporate activities in respect of introduction of electronic ticket (E-ticketing) and development of technologies of Web-booking and sales. The Board noted that dynamic development of this sales channel was concentrated on in 2006 that led to high growth rates of sales via Web-site and expansion of sales geography. Attraction of new market segments is ensured also with the help of six European and three Asian languages in the system of Web-sales.

Over 40 thousand tickets for $16,8 were sold through the site in 2006. The site is actively used as a source of information about Aeroflot flights: monthly about 200 thousand prospective customers make 750 thousand inquiries via the web-site of the company.

The Board prioritized development of modern sales technologies of Aeroflot, achievement of over 1 mln. tickets sold via Internet by 2009 and a share of 25-30% of corporate Internet sales by 2010.

The Board noted that the current regulatory framework of the RF does not allow Aeroflot to realize its potential in full for full value introduction of technology of e-ticketing similar to existent international practice. This deprives domestic customers of many conveniences, possibilities of full use of modern advances of e-commerce. To eliminate restrictions the Board of Directors charged the Management of the company cooperating with executives to work out suggestions on improvement of the legal framework of the RF needed for full value introduction of e-ticketing.

The Board considered results of production and financial activities of the Company in 2006.

In 2006 7 mln. 290 thousand passengers were carried (that is 593 thousand more than in 2005). Passenger turnover increased by 8% as compared with 2005 (22 406,5 mln. passenger kilometers). Tonne-kilometer rates grew (2 884,7 mln. tonne-kilometer), 145 277,7 tons of cargo and mail were carried.

The rate of occupation of passenger seats reached 70,1% (1% more than in 2005). Airborne hours increased by 6,5% (254 865 hours).

Revenues from operating activities grew by 13,5% in 2006 (vs. 2005) and made 71322,2 mln. rubles. According to the results of production and financial activities in 2006 (after deduction of taxes and other similar compulsory payments) the anticipated net profit according to RAS will reach 6 976,3 mln. rubles ($256,5 mln.) as compared with 2005 this result should be improved by 943,9 mln. rubles ($44,3 mln.).

The Board decided to hold the annual shareholder meeting of OJSC “Aeroflot” on June 23, 2007, in the Centre of Corporate Flight Staff Training (Sheremetyevo-1).

May 7, 2007 was approved as a date of making a list of persons authorized to participate in a forthcoming shareholder meeting.

A list of applicants (11 persons) to the Board of Directors of the Company was approved. It included:

Antonov Vladimir Nikolayevitch – first deputy General Director of OJSC “Aeroflot”;

Danilitskiy Anatoliy Antonovitch – General Director of “Natsional’naya rezervnaya korporatsiya” Ltd.;

Dushatin Leonid Alekseyevitch – first deputy General Firector of “Natsional’naya rezervnaya korporatsiya” Ltd.;

Ivanov Viktor Petrovitch – Assistant to the Russian President;

Kopeykin Mikhail Yurievitch – Deputy Chief of the RF Government Staff;

Korol Boris Mikhailovitch – Deputy Minister of Transport of the RF;

Nikitin Gleb Sergeyevitch – Head of Federal Property Management Agency;

Okulov Valeriy Mikhailovitch – General Director of OJSC “Aeroflot”;

Shablin Vladimir Nikolayevitch – Senior Vice President of OJSC AKB “Natsional’niy Reservniy Bank”;

Sharonov Andrey Vladimirovitch – Secretary of State – Deputy Minister of Economic Development and Trade of the RF;

Yurtchik Aleksandr Alekseyevitch – Head of Rosaviatsiya.

A list of 7 applicants to a Revision commission of the Company was approved (features 5 persons).

The approved agenda of the forthcoming meeting includes 8 questions compulsory for consideration during next annual general shareholder meeting according to the Federal law “On joint-stock companies”.

The board of the Company has decided to establish a representation of OJSC “Aeroflot” in the city of Malaga (Spain). Starting from summer schedule 2007 the company is planning three regular flights a week Moscow – Malaga – Moscow by A320. Permission of Spanish and Russian air authorities for these flights is available.

OJSC “Aeroflot – Russian Airlines” is based in Moscow, Russia, at the Sheremetyevo Airport. The company was established in 1923. It is the largest air carrier with 39% of international and 11% of domestic carriages in Russia. Aeroflot is a member of the global alliance Sky Team, recognized “The Best Air Alliance” by the readers of Global Traveler Magazine in 2005 and 2006. In 2006 it carried 7,3 mln. passengers to 89 cities of 47 countries. Net profit in 2005 made 6, 032 bln. rubles. Aeroflot has 302 flights a day and its fleet makes 88 aircrafts. More information is available at and