Aeroflot Announces Results of Board Meeting
OREANDA-NEWS. JSC Aeroflot (“Aeroflot” or “the company” Moscow Exchange ticker: AFLT) announces the results of its Board of Directors meeting held yesterday. The meeting was chaired by Kirill Androsov and the agenda included the following items:
Review of the performance of Aeroflot Group (“the Group”) against the consolidated budget for 2013. The Group achieved a 30.3% share of the Russian commercial aviation market (including foreign companies) by passenger traffic. Passenger traffic at JSC Aeroflot was almost at target level. Across the Group traffic reached 95% of plan due to volumes at subsidiary airlines coming in below plan. Key financial indicators were ahead of target.
Service innovation. In 2013 Aeroflot implemented initiatives to maintain its high position in global ratings of service quality and to receive positive feedback from passengers. NPS customer loyalty index reached 58%, an increase of 2% on 2012. Actions taken before and during the Olympic Winter and Paralympic Games of 2014 in Sochi were particularly important.
Activities planned for 2014 include:
An updated menu for business-class passengers, and an improved menu in economy class;
Improved navigation for passengers in the arrival halls of Terminal D at Sheremetyevo airport;
Installation of equipment for inflight Internet access on six A330 and four B777 by the end of the year.
Acquisition of 13 Airbus A320 family aircraft. The board approved the acquisition of six new Airbus A320 and seven new A321 from Aerospace International Group (AIG). Delivery is scheduled from 2Q 2016 to 2Q 2017.
Other issues discussed included:
Strategic partnerships. Aeroflot's transition to a system of long-term bilateral strategic partnerships with global carriers was recognized as advantageous.
Employee performance review. Key parameters were approved in accordance with best international practices.
Regulation on the Internal Audit Department. A new approved edition of the Regulation takes into account updated listing rules at Moscow Exchange.
Changes to Aeroflot's organizational structure. A new organizational structure was approved, with the Complaints Department now reporting to the Deputy CEO for Customer Relations.