Moscow 26 September, 2019 – Aeroflot announces the results of the Board of Directors of PJSC Aeroflot (Moscow Exchange Ticker: AFLT) meeting, which was held on 25 September, 2019 and chaired by Evgeny Ditrich.
In accordance with the work Plan of the Board of Directors for the period July 2019–June 2020, the following issues were considered:
About the results of performance of consolidated budget indicators of Aeroflot Group for the first half of 2019;
Report of PJSC Aeroflot's IFRS auditor on the audit results for the first half of 2019;
Implementation of Aeroflot Group's long-term development programme and achievement of KPI for the second quarter of 2019;
About incentive system in Aeroflot;
About the organization of implementation audit of the long-term development program of Aeroflot Group for 2019.
The Board of Directors has received a report about the implementation of Aeroflot Group's Marketing strategy. Aeroflot Group has ambitious growth goals: to increase passenger traffic to 90-100 million passengers by 2023 (according to the results of the 2018, passenger traffic is 55.7 million people). International transit will increase from 5 million to 10-15 million passengers, regional traffic - from 7 million to 19 million people. Taking into account Aeroflot Group's position in the market and bold growth ambitions, it was necessary to update the Marketing strategy until 2023. Market segmentation was carried out, which allowed to identify six unique segments and to distribute priorities among the airlines of the Group. The positioning of each company of the Group is determined, which allows to provide full coverage of all target markets and customer segments. Refined strategies have been developed for each airline and each macro market based on the Group's overall Marketing strategy. The latest trends in media consumption in key markets, best practices of competitors and understanding of passenger requirements are taken into account. As a result, target segments, marketing priorities, communication platform and key promotion channels have been identified in each market. The Board of Directors decided to adopt the updated Marketing strategy of Aeroflot Group until 2023.
In considering the issue of air ticket price monitoring, it was noted that Aeroflot has effective processes for setting and monitoring prices with a modern revenue management system operated by highly qualified specialists work. To increase the transparency of the pricing policy, the company has developed and implemented an additional mechanism for the regular provision of price and production indicators to the FAS Russia.
The meeting of the Board of Directors approved the transaction (a set of interrelated transactions) for the lease (leasing) of five new jets of the regional class Sukhoi Superjet 100. Planned delivery time of each aircraft (with the possibility of postponing / extending the delivery time): IV quarter 2019. Lease/lease term: not more than 144 months from the date of transfer of the aircraft to PJSC Aeroflot. The lessor will be determined based on the results of competitive procurement procedures.
