PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a special Board of Directors meeting held in absentia on 25 August 2016
The new Board elected at the Annual General Meeting of Shareholders (AGM) on 27 June 2016 participated. Kirill G. Androsov was re-elected Chairman of the Board of Directors, a post he has held since 2011.
Alexey V. Melekhin, director of PJSC Aeroflot’s corporate governance department, was appointed executive secretary of the Board of Directors.
The meeting agenda included the following items:
Approval of a related-party transaction with OJSC A-Technics for technical maintenance and servicing of PJSC Aeroflot aircraft. The transaction was approved by Aeroflot and by A-Technics, a company formed specifically to perform technical, maintenance and servicing of aircraft belonging to Aeroflot Group companies. This contract facilitates ongoing and periodic technical servicing as well as maintenance of Aeroflot Group aircraft, ensuring satisfactory oversight and high quality of operations.
Implementation of a program to optimize operating expenses. The Management Board was tasked with implementing a series of measures as part of the Long-term Development Program that will facilitate reduction of operating expenses (costs) in 2016 by 10%, including across subsidiary companies.
Aeroflot Group’s Innovative Development Program through 2025. This program was approved by relevant governmental ministries as well as the Interagency Commission on Technical Development of the Presidium of the Russian Federation President’s Council for Economic Modernization and Innovative Development of Russia. In finalizing the program, recommendations were taken into account, including those related to further import substitution including in the use of software. The decision was taken to approve Aeroflot Group’s Innovative Development Program through 2025. Upon completion of the consolidation of a number of subsidiary companies into Rossiya Airlines in 2017, the Management Board is tasked with forming an Innovative Development Program for Rossiya and incorporating it into the Aeroflot Group Innovative Development Program.
Several transactions necessary for the operating and business activities of Aeroflot Group were also approved.
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