06 May 2013


April 26, 2013, Moscow– JSC “Aeroflot” Board of Directors ordinary meeting was held yesterday chaired by Kirill Androsov.

The Board of Directors considered the question on Aeroflot Group budget for 2012. Revenue of JSC “Aeroflot” according to IFRS for 12 months 2012 exceeds budget figures by 12%, planned revenue of Aeroflot Group was exceeded only by 0.5% mainly due to non-fulfillment of volume of carriage plan by the subsidiaries. JSC “Aeroflot” planned operating profit was exceeded by $278 mln., Aeroflot Group planned operating profit – by $147 mln. JSC “Aeroflot” EBITDA margin amounted to 10%, Aeroflot Group EBITDA margin totaled 8% versus planned 6%.

The Board of Directors considered the question on execution of Aeroflot Group strategy by 2025. Strategy execution progress allows for a positive forecast on achievement of its main milestones such as entering top-5 airlines in Europe and top-20 global airlines in terms of revenue and passenger traffic. Passenger carriage volumes of the Group by 2025 will exceed 70 mln. passengers, among them not less than 30 mln. on Russian domestic market.

Group target operating and financial indicators were outlined for 2013-2018. It is assumed that in 2018 the Group would carry 47.332 mln. passengers, increasing the market share to 38.6%. By the indicated period the joint fleet of the Group would total 282 aircraft. For the whole period the expansion of Aeroflot Group would be accompanied by the positive margins. By 2018 the net income of the Group is expected to reach $362 mln.

The fact that each carrier of the Group is concentrated on its market segment including geographical segmentation was outlined. Aeroflot as scheduled network carrier would remain the main driver of the Group expansion. The fact that development progress of the locomotive airline of the Group is in line with the milestones set forth in the Strategy-2025 was outlined. Also the activities plan on creation of the Far Eastern Company within Aeroflot Group is executed according to the schedule.

Additional growth opportunity for the Group can be derived from a low cost carrier segment development. Execution monitoring of the confirmed milestones of Aeroflot Group Strategy-2025 development confirms their viability and relevance for 2013-2018. Due to existing structural limitations in “Sheremetyevo” airport the feasibility of transfer of part of point-to-point flights with direct passenger flow starting from winter season 2013/2014 to “Vnukovo” airport was confirmed.

The Board of Directors confirmed the proposed execution directions of Aeroflot Group Strategy-2025 and key performance indicators for 2013-2018.

The question on cooperation with SkyTeam Alliance members was considered at the meeting. Negotiations on expansion of existing partnership with key alliance members were held to date. Approaches to conclusion of strategic partnership agreements with the key players – members of SkyTeam and other potential partners were considered. Owing to SkyTeam Alliance membership in 2012 a considerable network effect was achieved: 63 marketing flights, 1,049 daily frequencies of marketing flights, 32,307 connections. The fact that SkyTeam resource employment yields favorable results was acknowledged, but due to the fact that the potential of other technologies of cooperation has not been unlocked in full, the working team for holding negotiations with potential partner airlines regarding determination of strategic partnership parameters would be created.

During the discussion on work with shareholders and investors the Board of Directors pointed out growth of JSC “Aeroflot” market capitalization during the last 52 weeks, which amounted to $1.89 bln on March 24, 2013 (versus $1.82 bln a year earlier). The average day trading volume of JSC “Aeroflot” shares at MICEX increased by more than 30% during the preceding 52 weeks and more than by 70% from January 2012. The fact that investors have trust in Aeroflot management team, operating and financial indicators of the Company and favor the adopted development strategy was pointed out. According to banks and investment companies’ analysts’ consensus forecast shares of JSC “Aeroflot” have a considerable growth potential. Based on qualitative and quantitative criteria analysis the conclusion on higher efficiency of the Company in shareholder and investor relations field was made.

The question on JSC “Aeroflot” motivation system was considered at the meeting. The decision to approve the recommended parameters of the long-term option program as well as JSC “Aeroflot” profit sharing program was made. The Management Board was mandated to develop projects of the relevant provisions based on the approved parameters. Additionally an assignment on development of the measurement system for annual assessment of JSC “Aeroflot” employees’ efficiency as well as succession pool system development was given to the Management Board.

The Board of Directors approved leasing transactions for four medium-haul A320 family aircraft:

  • Lease transactions on two Airbus A320-200 aircraft with AWAS (Ireland) Limited (delivery schedule – February, March 2014, lease term – 12 years from the date of delivery of each aircraft);
  • Lease transactions on two Airbus A320-200 aircraft with SMBC Aviation Capital Limited (delivery schedule – April, May 2014, lease term – 12 years from the date of delivery of each aircraft).



Aeroflot is Russia’s leading air carrier, member of the global SkyTeam alliance. Its consolidated route network covers 1000 destinations in 187 countries. In 2012 Aeroflot carried over 17 million passengers.


In 2011 SkyTrax put Aeroflot into the top 3 of the ‘most dynamically developing airlines of the world’ and honoured Aeroflot with a prestigious international SkyTrax World Airline Award as ‘the best airline in Eastern Europe’.

Aeroflot was the first Russian carrier to enter the IOSA Registry, and has been consistently re-attested. Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The company’s Quality Management System is certified for compliance with ISO 9001:2008.

Aeroflot – General Partner of Sochi 2014 Olympics and Paralympics.

Aeroflot operates one of Europe’s youngest air fleets that consists of 136 aircraft. Aeroflot is based at Moscow Sheremetyevo International Airport. Find more at