Aeroflot Announces Results of Board of Directors Meeting for March 2015

Moscow, 20 March 2015. — JSC Aeroflot («the Company», Moscow Exchange ticker: AFLT) announces the results of the meeting of the Company’s Board of Directors that took place on 19 March, chaired by Kirill Androsov.

The agenda of the meeting included the following items:
Aeroflot Group consolidated budget report for 2014. Aeroflot Group’s share of the Russian market by passenger turnover increased by 0.9 p.p. year-on-year from 2013, and reached 31.1% (of the total 111.8 million passengers carried including foreign airlines). The Group’s operational results were affected by the challenging geopolitical situation and significant increase in the USD and EUR vis-à-vis the RUB, which resulted in a reduction in demand for air travel. In this context Aeroflot Group as a whole was able to generate moderate growth of key indicators. The Group’s revenue under IFRS increased year-on-year by 10%, to RUB 319.8 billion. For JSC Aeroflot this figure stood at RUB 257.7 billion, up 16% on 2013 and 7% ahead of budget. A sharp reduction in operating costs meant the Group was able to increase profitability against budget plans.

Aeroflot’s customer service offering. The Group continues to place highly in international customer service rankings thanks to an ongoing commitment to improving its service offering. Technology is a core element of the Aeroflot consumer experience. Following expansion of its Internet Onboard programme, 30 Aeroflot aircraft are now specially equipped to offer in-flight wi-fi. Aeroflot placed seventh in the US online consumer rating service Routehappy’s ranking of the top 10 international airlines offering on-board wi-fi. Additional new technology offerings include the ability to book hotels directly from Aeroflot’s website and an Aeroflot mobile app for iPad on the iOS platform. In 2015 the Company plans to equip an additional five aircraft with wi-fi capabilities, replace individual digital players in Business Class cabins with modern portable devices, and roll out upgraded dining options across all service classes. On the ground, new services to be offered include SMS notification of the start of check-in and the start of boarding as well as the installation of new devices with built-in electronic scales for the approval of cabin luggage at the gate. In order to ensure a competitive customer service offering on Group subsidiary airlines a number of new services will be introduced. A programme will be carried out across the Group to support an improved customer experience and to maintain current positions in international ratings.

Introduction of Corporate Governance Code provisions. The Board of Directors considered a number of measures to improve the work of Aeroflot’s management and oversight bodies, including the General Meeting of Shareholders, the Board of Directors and its committees. The Board resolved to approve the Action Plan («Road Map») for improving corporate governance practices as JSC Aeroflot.