Aeroflot Board of Directors decision
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PJSC Aeroflo announces the results of a meeting of the Board of Directors held on 28 November 2019. The meeting was chaired by Evgeny Ditrich. The agenda of the meeting included the following items:
Aeroflot Group’s consolidated IFRS budget for 2020. In 2020, Aeroflot Group expects growth of operational indicators. The low-cost airline Pobeda is expected to be the main growth driver in terms of passenger traffic rates within Aeroflot Group. The Group plans to expand its fleet by 31 aircraft to 398 in total. In 2020, Aeroflot Group plans to phase in new wide-body Airbus A350 aircraft (11 by the end of the year). The budget for 2020 factors in new opportunities connected with infrastructure development at Sheremetyevo, Aeroflot’s home airport, as well as the launch of a new hub in Krasnoyarsk.
Charitable activities. The report on the use of the charity budget for 2019 was reviewed. The Board confirmed that expenditures fully comply with the Company’s Policy on Formation and Use of the Charitable Fund, as approved by the Board of Directors. Decisions on allocation of charitable funds are made by consensus: applications are considered by the Board, thereby increasing the transparency and integrity of the decision-making process. The main recipients of Aeroflot’s charitable support in 2019 were orphanages. The Board of Directors also considered allocations of funds to support children’s hospices in Moscow and St. Petersburg before the end of 2019.
Sponsorship initiatives. The 2019 sponsorship budget was reviewed for compliance with the Company’s Policy on Formation and Use of the Sponsorship Fund, as approved by the Board of Directors. The size of the Sponsorship Fund for 2020 was also approved. Sponsorship of the CSKA professional soccer club and the CSKA professional basketball club for the 2020-2021 seasons were approved.
PJSC Aeroflot’s incentive system. The Board considered options for further development of the incentive system. The list, weight and targets of KPIs for Aeroflot Group’s Long-Term Development Programme and PJSC Aeroflot’s CEO for 2020 were approved, as well as other internal guidelines on KPIs for Aeroflot Group and the incentive system.
Approval of a related party transaction (set of related transactions) regarding the lease of five new regional Sukhoi Superjet 100 aircraft. To facilitate the necessary number of regional aircraft in the fleet, additional contracting of Superjet 100 (SSJ100) is required. The Board of Directors approved a lease transaction for five regional SSJ100s. The transaction shall be completed with the appropriate lessor, chosen in line with the tender procedures. The stipulated delivery period for each aircraft (with an option to postpone or extend the delivery time) is 4Q 2019.
Plan of activities for the internal audit department for 2020. The Board approved the plan for the Internal Audit Department, with the key focus on risk audits.