In Aeroflot board of Directors

05 May 2010

Aeroflot board of Directors meeting took place on September 1, 2004.

The Company operating results for the first half of 2004 were considered.

In comparison with the first half of 2003:

  • passenger-kilometers increased by 19.9%;
  • ton-kilometers – by 25,8%;
  • carriage of passengers increased by 20.1%, freight carriage – by 28.3%.

Percentage of enplaned traffic increased up to 57.1% (2003 – 53.8%) in the first half.

Earnings from carriage of passengers grew by 1209.9%, post and freight carriage earnings – by 133%; at the same time expenses increased by 14.3%. This resulted in net income increase according to the results of the first half of the year (compared with the same period of the previous year).

There were also considered issues related to the procedures of forming the bonus fund for the airline company’s employees according to the results of 2004. The main principles of this fund forming were approved: the airline company’s personnel bonuses were to depend on net income and its growth according to the airline company’s operating results in 2004.

Deloitte & Touche Audit Company report on Aeroflot financial results for 2003 according to IAS was considered.

Deloitte & Touche main conclusions include:

  • assets amounted to 1067.3 million USD in 2003 (in 2002 they were 885.4 million USD);
  • net income was 126.7 million USD in 2003 (in 2002 – 89.7 million USD);
  • income per stock amounted to 0.114 USD (in 2002 – 0.080 USD).

The Company Board of Directors operation plan was approved for the period from August 2004 to June 2005. In this respect considering issues of future activity of three Committees of Board of Directors: on Strategy, on Audit, on Personnel and Bonuses – it was decided to increase the role of these bodies of the Board of Directors in preliminary consideration of main issues according the Board of Directors Operation Plan for the next year.

There were also considered issues related to preparing and holding Aeroflot special stockholders meeting on October 23, 2004, and made necessary decisions.