Aeroflot Announces Results of Board of Directors Meeting

aeroflot press-release

PJSC Aeroflot (Moscow Exchange ticker: MOEX) announces the results of a meeting of its Board of Directors held on 20 April 2017. The meeting was chaired by Kirill Androsov.

The meeting agenda included the following items:

Results of Aeroflot Group’s consolidated budget for the full year 2016. Total passenger traffic for the Russian air travel market in 2016, including international carriers flying to and from Russia, was 102.8 million passengers. Aeroflot Group’s market share increased by 5.6 percentage points year-on-year to 42.3%. For the 12 months 2016 Aeroflot Group posted growth across key performance indicators on a par with international competitors. PJSC Aeroflot achieved 100.3% of its passenger traffic targets for the year and the Group achieved 100.1% of its targets. Aeroflot Group delivered on the Board of Directors’ mandate to reduce operating expenses in 2016. For 2016 management delivered above target levels on key performance indicators (KPIs) tied to Aeroflot’s Long-term Development Programme (LDP) thanks to increased operational efficiency, implementation of expense optimisation measures and increased labour productivity. A programme to ensure that Aeroflot management’s ruling to increase accuracy of planning has been developed and successfully rolled out.

Delivery on Aeroflot Group’s Long-Term Development Programme in 2016 (achievement of KPIs and audit results). A report on implementation of Aeroflot Group’s LDP and delivery on KPIs was presented, confirming achievement of and over-delivery on KPI targets for 2016, successful execution of the main aspects of the programme focused on achievement of strategic goals including developing a multi-brand offering as well as achieving and stimulating demand across various price segments. An audit of implementation of the Group’s LDP and achievement of KPIs for 2016 confirmed the completeness and relevancy of the information to the degree to which the LDP activities had been completed and the KPI targets achieved in 2016, as well as the reason for the discrepancy between the actual and planned KPI metrics.

PJSC Aeroflot’s incentive system. The results PJSC Aeroflot management’s delivery on KPIs for the fourth quarter and full year 2016 were approved. Also approved were proposed parameters for execution and changes to the incentive system for members of the Board of Directors, senior management and PJSC Aeroflot personnel.

Enhancing customer service at Aeroflot Group. Aeroflot occupies top positions in global rankings and achieves strong ratings for customer service. The Company is implementing a range of initiatives that aim to maintain the Skytrax Four Star rating and improve the product overall. A children’s magazine is now distributed on board aircraft, the assortment of publications available in English has been increased and catering options extended, with an emphasis on Economy Class. Flights departing from Moscow will have a new menu featuring Russian cuisine. The functionality of IT services has been significantly boosted, principally the corporate website and mobile apps. Planned improvements include roll-out of a pilot project to deliver an aviation offering to IATA NDC standards (creating individual offerings for each customer directly and of a higher calibre, informing customers about branded fare groups and sales promotions). Additionally, constant improvements are being made to service at the Sheremetyevo Airport hub, particularly in terms of customer communication. Aeroflot Group will continue to budget for improvement in customer service in 2017.

Incoming customer communication. The increase in the volume of incoming customer communications and the number of channels through which customers communicate, a result of the increase in passenger traffic, requires the roll-out of a unified automated system to process inbound communication. The Big Data platform will facilitate a unified pass-thru process for the communication. The 2017 budget calls for three phases of the roll-out of key functionalities of the automated system across all incoming customer communication channels. Developing a unified multi-channel system of processing incoming communication will increase the quality and transparency of Aeroflot’s work with inquiries and facilitate significantly improved customer service and client loyalty.

5 in 5 Roadmap. A range of initiatives under the “5 in 5 Roadmap” was approved. The roadmap focuses on development of PJSC Aeroflot’s product and service offering with the aim of securing leading positions in the most authoritative international ratings. These measures are of particular importance in ensuring Aeroflot maintains its competitive position in the international market. The Company has set the goal of being named Best Airline in Europe in the Skytrax World Airline Awards and in the future achieve a Five Star rating from British consultancy Skytrax, the world’s leading authority on airline and airport quality.

Annual accounting statements, including the Company’s financial results for the 2016 financial year. The improvement in PJSC Aeroflot’s financial results as a result of a number of key factors was noted. These factors include an increase in passenger traffic, expansion of the fleet, expansion of the route network and an increase in the total number of flights. The Board listened to PJSC Aeroflot’s auditors’ reports (under Russian Accountings Standards and International Financial Reporting Standards for the 2016 financial year). The auditors confirmed that the financial statements accurately reflect PJSC Aeroflot’s financial position as of 31 December 2016. The decision was made to confirm and recommend to the AGM upcoming on 26 June 2017 the accounting statements, including the report on PJSC Aeroflot’s financial results for the 2016 financial year.

Russian Aviation Insider
Powered by Air Transport Observer, Russia & CIS’ premier information provider on commercial aviation with a 20-year legacy, Russian Aviation Insider provides you with timely and reliable business news, insights and analysis on commercial aviation all around CIS.
Sign up for our free Newsletter and never miss:
  • Airline Business news and analysis
  • Aerospace Industry updates
  • Traffic statistic data and trends
  • Airport, MRO, Leasing and other related businesses
  • Appointments and promotions

Get relevant data from reliable industry sources!

Leave a comment