Published on : Thursday, July 31, 2014
Today the Board of Directors of Aeroflot («the Company», Moscow Exchange ticker: AFLT) convened for the first time following the election of Board members at the 27 June 2014 Annual General Meeting («AGM»). At the start of the meeting Kirill Androsov was re-elected as Chairman of the Board.
The Board elected members and appointed chairs for each of its three standing committees. Igor Kogan was elected chairman of the Audit Committee; Igor Kamenskoy was elected chairman of the Human Resources and Compensation Committee; Roman Pakhomov was elected chairman of the Strategy Committee.
With a focus on maximising the Board’s effectiveness, a forward-looking agenda covering key issues for the period July 2014-June 2015 was approved.
The Board of Directors approved JSC Aeroflot’s dividend policy («the Policy»). Aeroflot’s dividend policy aims to ensure maximum transparency for shareholders concerning the way in which dividends are calculated, and the procedure for their payment.
The Policy establishes guidelines for how the Board of Directors determines its recommendations for the General Shareholder Meeting regarding the distribution of profit, including payment of dividends. The Policy states that Aeroflot’s priority is to pay out dividends equal to 25% of Aeroflot Group’s consolidated net profit under International Financial Reporting Standards («IFRS»). At the same time, the Board will take into consideration additional factors when determining dividends for a given year, including the availability of sources of financing for investment activities and debt repayments, the Group’s debt level, Aeroflot’s capital expenditure plans, etc.
The full text of the Policy will be posted to the Company’s website.
The Board of Directors reviewed the consolidated financial performance of the Aeroflot Group for the first quarter of 2014.
The Board reviewed the results of Aeroflot’s Innovative Development Programme («IDP») for 2013. The Company completed all innovation-focused projects planned for the year. All targets were exceeded across areas including production activities, service quality, the efficient use of resources and environmental protection. A medium-term IDP for 2014-2016 was prepared, laying the groundwork for successful realization of the Programme in 2014.
The Board of Directors approved a new organizational structure for Aeroflot aimed at optimising commercial activities and combining support functions under central management. Thus, the Board eliminated the position of First Deputy CEO — Operations Director. The departments that previously reported to the First Deputy CEO — Operations Director now report to either the First Deputy CEO for Aviation Safety or the Deputy CEO for Customer Relations.
The Board of Directors reviewed the Company’s sponsorship of Russian sports teams. The Company’s sponsorship of the CSKA Football Club for the 2013-14 season was deemed a success and the Board approved continuation of this sponsorship for the 2014-15 season.
The Board of Directors also approved a transaction for JSC Aeroflot to acquire shares in JSC Aurora Airlines as part of Aurora’s additional issue of shares. The transaction increases the value of JSC Aeroflot’s stake in Aurora, while the size of the stake remains unchanged at 51%.
Tags: Aeroflot Airlines