Aerospace, automotive and technology

Aeroflot Announces Results Of Board Of Directors’ Meeting


By Dmitry Zherdin – Source:, CC BY-SA 3.0, Source: Wikimedia

PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of the Board of Directors’ meeting held on 2 February 2017 and chaired by Kirill Androsov.

The meeting agenda included the following items:

PJSC Aeroflot flight safety in 2016. In 2016 PJSC Aeroflot completed a total of 715 thousand flight hours, up by 52 thousand year-on-year. At the same time, last year the flight safety level was at 99.975%, on a par with the average rate of 2014-2015. The CEO’s KPI for Flight Safety level in 2016 was met. Furthermore, the Company also fulfilled the SAFA safety coefficient metric, which had been determined following inspections under the European “Safety assessment of foreign aircraft” programme. The value of the coefficient amounted to 0.45 (far below the allowed maximum of 2). The Company has identified key activities that will be undertaken to enhance flight safety in 2017.

Work with shareholders and the investment community in 2016. In 12M of 2016 PJSC Aeroflot’s share price increased by 172.5% (up to RUB 152.9 as of 30.12.2016). In Q4 the share price increased by 30.7%. As a result, on 30.12.2016 the Company’s market capitalisation was RUB 170 billion (USD 2.8 billion), thereby exceeding the capitalisation of Air France and Turkish Airlines, and catching up with that of Air Canada. The share price increased mainly due to the announcement of strong H1 and 9M financial results, which had improved amidst a general positive trend on the Russian stock market. The results of the work with the investment community in 2016 were also discussed. Specifically, the number of meetings with investors, results of the annual perception study shareholder identification, along with completed projects such as the launch of an updated IR-section of the website and the organization of a Capital Markets Day. The Investor Relations plan for 2017 was approved.

PJSC Aeroflot incentive programme. A new version of PJSC Aeroflot’s Regulation on long-term incentive programme (for the period between 01.01.2016 and 30.06.2019) was approved and now includes proposed changes.

PJSC Aeroflot strategic partnerships. It has been acknowledged that there are certain factors complicating the creation of strategic partnerships – joint ventures (JV). Among them the contraction of the Russian civil aviation market and a difficult geopolitical situation. Nevertheless, the relevance of JV has once again been confirmed. At the moment, management is planning to establish partnerships which would allow Aeroflot Group to optimise its route network and increase revenues. Partnerships deemed most attractive are those that take into account high traffic growth rates in the Asia-Pacific region and hold a potential to expand Aeroflot’s route network.

Aeroflot is Russia’s flagship carrier, A proud member of the SkyTeam global airline alliance. Aeroflot and its partners serve 1,062 destinations in 177 countries worldwide. In 2016, Aeroflot carried 29 million passengers (43.4 million passengers as Aeroflot Group including subsidiaries).

In 2016 Aeroflot became the first Russian airline to be awarded Four Star Airline status by Skytrax in recognition of the high-quality of its customer service, and was also named Best Airline in Eastern Europe for the fifth time at the Skytrax World Airline Awards.   

Aeroflot operates one of the youngest fleets in the world with 189 aircraft. Aeroflot is based in Moscow, in Sheremetyevo International Airport.

Aeroflot is among the global leaders in aviation safety, with a European Community Safety Assessment of Foreign Aircraft (SAFA) Index, the main globally recognized safety parameter, comparable to global peers.

The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the sixth time in 2015, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant.

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