Aeroflot announces results of Board of Directors' Meeting
OREANDA-NEWS. PJSC Aeroflot (MOEX: AFLT) announces the results of a Board of Directors meeting held on 1 February 2018 that was chaired by Mikhail Poluboyarinov.
The agenda included the following items:
PJSC Aeroflot flight safety in 2017. Aeroflot’s flight safety performance came in at 99.972%; the CEO’s KPI in this area was achieved. The findings per inspection ratio, as per the EU Safety Assessment of Foreign Aircraft (SAFA) programme, remained at the 2016 level of 0.45 for both PJSC Aeroflot and Aeroflot Group. All Aeroflot Group companies that participate in SAFA inspections achieved a ratio significantly below the maximum allowed ratio of 2.0. The Board designated key activities for 2018 to improve the safety of PJSC Aeroflot flights.
Shareholder and investor relations (2017 results). In addition to ongoing investor relations activities, a number of key initiatives were carried out in 2017. These included the launch of a Databook in the Investor Relations section of Aeroflot’s website that significantly simplifies analysis of Group results by investment funds. A number of strategic events were held in order to strengthen relations with the investment community, including an Investor & Analyst Day held in December in which PJSC Aeroflot management and the CEOs of subsidiary airlines Rossiya and Pobeda participated. In 2017 Aeroflot Investor Relations was recognised with a number of accolades, including an award for best investor relations in its sector from IR Magazine. In 2018 Aeroflot investor relations activities will continue across key areas, including taking steps to grow the investor base. The Board approved the proposed plan of investor relations activities.
Status of PJSC Aeroflot strategic partnerships. The importance of strategic partnerships for Aeroflot was underlined. International experience demonstrates that establishing strategic partnerships is one of the most effective ways to expand into new markets. Concrete prospective strategic partnerships were reviewed, which would see Aeroflot implement leading global practices in the area of aviation partnerships. Simultaneously negative external factors were taken into consideration, and it was noted that the formation of strategic partnerships could contribute to the normalisation of the geopolitical situation.
Aeroflot Group ancillary revenue. The Group is posting a growth trend in ancillary revenue, the structure of which is in line with international practice. Aeroflot's policy of offering additional services on a paid/unpaid basis is similar to that of other market leaders. Across the Group new additional services are being developed and rolled out; simultaneously, a programme to increase Group ancillary revenue is being developed that centres on product improvements in the air and on the ground, including leveraging the latest information technology (improved quality of WiFi, preliminary orders via apps, new advertising opportunities, widespread use of Big Data, etc.).