Board Of Directors Of OJSC “Aeroflot”

05 May 2010

On January 30 the Board of Directors considered the matter: "On flights safety in 2006". The Board approved activities of OJSC "Aeroflot" management on promotion of flights safety and noted an increase of safety coefficient of IATA to 99,965 %, as well as growth of flight hours per accident to 5376 hours as compared with 4802 hours in 2005. The important achievement of 2006 became introduction of the international standard of production safety IOSA-IATA and successful audit of its compliance. The Board marked that system operation of the company in respect of enhancement of the flights safety was arranged against the background of expanding the fleet with modern aircrafts, improvement the system of air crews training, introduction of the latest world achievements of air production management system.

The Board approved the suggested plan of capital investment in 2007 of 3 521 800 000 rubles. The main funds will be spent on modernization of air crafts, purchase of additional training vehicles for emergency training complex "Water-Land", equipment for Sheremetyevo 3 airport to be commissioned in November 2007. Moreover additional expenses are stipulated for construction of a new office building of the company, acquisition of uniform, development of corporate information processing technologies. Depreciation of 863 564,6 rubles and net corporate profit for the former period are used to cover capital investments.

The Board of Directors approved suggestions of the management on consolidation of a concept of air companies of the Far East region and noted the priority of this project as well as necessity of more active cooperation with executive bodies for its promotion.

During consideration of further use of the Sabre information system in Aeroflot a sufficient economic effect from its introduction in 2006 was noted due to productivity gain in sales offices. The Board took into consideration information on plans of further use of Sabre for development of modern sales methods and profit management; system of web-booking and Internet sales including forthcoming transition for use of e-ticket; development of system of self check-in; wide use of the Sabre programs for Sheremetyevo 3.

"Provision on remuneration to OJSC Aeroflot employees" approved by the Committees of the Board on strategy, human resources and remuneration was adopted. According to the adopted provision the employees are remunerated at the expense of the net profit means approved by the general meeting of stockholders for the financial period from which remuneration funs are formed approved by General Director: "For execution of strategic tasks", "For enhancement of efficiency", "For budget administration".