Results of Aeroflot Board of Directors meeting
PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of the Board of Directors meeting held on 31 March 2016. The meeting was chaired by Kirill Androsov.
The meeting agenda included the following items:
On the results of Aeroflot Group’s consolidated budget performance in 2015. Aeroflot Group’s total share of the Russian market (including foreign carriers) in passenger turnover increased by 5.6 percentage points year-on-year and amounted to 36.7%. This increase was primarily due to domestic route traffic and declining operational performance among competitors. Aeroflot – Russian Airlines met its targeted passenger turnover, delivering 101% of plan, while Aeroflot Group delivered 99.1% of planned passenger turnover. In 2015 Aeroflot Group demonstrated growth across all operational metrics on the same level as international peers. The Group also managed to increase its operating margins compared to its key competitors. The Group’s operating profit for the 12 months of 2015 amounted to RUB 44.1 billion, nearly four times higher than in the previous year. The Group’s EBITDAR margin exceeded targets by 6.9 percentage points and amounted to 24.8%. Profitability was affected negatively by provisions relating to the transport of Transaero passengers. The results of 2015 show that management met and exceeded its key performance indicators thanks to initiatives focussing on cost optimisation, productivity enhancement as well as efficient operational management.
On the development of Aeroflot Group service. Aeroflot continues to be a leader in quality of customer service in the European market, as the Group boasts top positions in both Russian and international transport and tourism ratings. Aeroflot has carried out a series of initiatives to further improve its service, including through the use of cutting edge technology. The entire long-haul fleet of 36 aircraft is now equipped with Wi-Fi internet access. In addition, part of Aeroflot’s website (seven sections) has been adapted for customers with disabilities. New electronic scales for hand luggage have been installed at Sheremetevo airport. The company plans to upgrade multimedia software on the Airbus A330 aircraft to increase the quality of communication services and offer new internet tariffs packages. The on-board entertainment system will be expanded to include a new Russia-focused channel called “Russia”, and an option for Chinese-language interface will be added. For business class passengers the Company plans to introduce a full set of national dishes (Japanese, Chinese, Korean, Thai, Vietnamese and Indian) on flights to Asia. The Aeroflot call-centre will add teletype functionality for customers with hearing disabilities. For flights departing from Sheremetevo airport, a new service will be introduced to notify passengers by SMS when registration has been opened or when boarding has begun. As part of the project to merge several of Aeroflot’s regional carriers into Rossiya, a set of passenger service standards has been developed, is being implemented and will continue to rolled out in accordance with the approved product line and branding.
On Aeroflot’s innovative development: On review of this agenda item, the Management Board was tasked with preparing an updated Innovative Development Programme (“IDP”) to present to the Board of Directors on 1 July 2016 for approval. The Management Board was also requested to prepare annual updates on the 1st of May of each year for relevant federal government entities; and from 2016 onwards, some KPIs will be set tied to the Group’s innovative activities when determining the size of management compensation.
On the development of the merged Rossiya Airlines: the integration process of Rossiya, Donavia and Orenair is proceeding according to the approved plan. Changes have been made to the management team of Rossiya, branches have been established at airports where the airline operates and all necessary personnel and equipment have been transported as needed. As of 27 March, regularly scheduled and also charter flights have been launched. In the Summer 2016 season, there will be regular flights to 81 destinations from Moscow (Vnukovo), Saint Petersburg and Rostov-on-Don. The charter programme covers 35 destinations with flights from Moscow, Saint Petersburg and Ekaterinburg. The development of the scheduled and chartered flight programme will help to achieve key KPIs of the merged company. The first aircraft in the new livery will be delivered to the Rossiya park in April 2016.
In addition, a number of questions were reviewed relating to support measures for Rossiya Airlines, and a number of transactions were approved that were necessary for the continued integration process of the newly merged Rossiya Airline.
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:
Get relevant data from reliable industry sources!