Annual Report 2015

ru

2015
Setting the Standard for Quality

PJSC Aeroflot Annual Report

In 2015, the Group significantly strengthened its market position thanks to its effective strategy, which is well adapted to external conditions and is founded on having a presence in different market segments, and also to our proactive approach to addressing changes in the external environment and our focus on financial discipline.

Aeroflot Group's Airlines

2015 Results

Setting the Standard for Stability

The Group’s strategy and presence in different market segments help the Group be resilient to external economic factors and deliver strong operating results.

Setting the Standard for Scale

The Group has an extensive route network covering Russia, foreign capital cities, and major financial and tourist centres.

Setting the Standard for Transparency

The Group continuously strives to improve its corporate governance and increase transparency through a number of projects in this area.

Setting the Standard for Responsibility

Aeroflot Group actively contributes to Russia’s social development by ensuring population mobility and the accessibility of Russia’s regions.

Setting the Standard for Confidence

Strong financial performance is a key priority for Aeroflot Group.

The Best Airline of Eastern Europe in 2011, 2013, 2014, 2015 years
4.4 year
average age of the Aeroflot airline’s fleet
99.978 %
Aeroflot airline’s flight safety level
72 %
Aeroflot airline’s Net Promoter Score

HIGHLIGHTS

OPERATING HIGHLIGHTS Aeroflot Group
Passenger traffic, million PAX
Passenger load factor, %
Passenger turnover, billion RPK
Available seat-kilometres, billion ASK
FINANCIAL HIGHLIGHTS Aeroflot Group
Revenue, RUB billion
EBITDAR, RUB billion, and EBITDAR margin, %
EBITDA, RUB billion, and EBITDA margin, %
Net profit, RUB billion

* Note: Adjusted nwF*et profit for 2014 and 2015 excludes result from derivatives, reserves, and other one-off effects

INVESTMENT CASE

BUSINESS DIVERSIFICATION BASED ON A MULTI-BRAND STRATEGY

PRESENCE IN ATTRACTIVE MARKET SEGMENTS

STANDARDISED HIGH-QUALITY PRODUCT

BALANCED ROUTE NETWORK BUILT AROUND THE HUB AT SHEREMETYEVO AIRPORT

EFFICIENT FINANCIAL MANAGEMENT AND CONSISTENT COST CONTROL

KEY EVENTS

FLEET EXPANSION

Agreement signed with United Aircraft Corporation for 20 Sukhoi Superjet 100s – Russian next-generation aircraft. The agreement is a follow-on to the existing firm contract for the delivery of 30 airliners (January 2015).

Memorandum of understanding signed with Sberbank Leasing for at least 14 aircraft, mainly Boeing 737NGs previously intended for Transaero (October 2015).

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ACCESSIBILITY OF REMOTE REGIONS

Single “flat” fares introduced by Aeroflot airline for direct economy class flights on routes to the Russian Far East, Kaliningrad and Simferopol (April 2015).

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ROUTE NETWORK DEVELOPMENT

Aeroflot launched scheduled flights to six destinations in Kazakhstan: Aktau, Aktobe, Almaty, Astana, Atyrau and Shymkent (October 2015).

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SUCCESSFUL DEVELOPMENT OF LOW-COST CARRIER

Four new aircraft were added to Pobeda’s fleet, enabling the company to launch new routes and develop its network – in 2015, Pobeda carried 3.1 million passengers and became one of the Top 10 Russian airlines (December 2015).

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STRATEGY UPDATE

The Group adapted its updated multi-brand platform to the changing market environment by combining the Rossiya, Orenair and Donavia into a single regional carrier under the Rossiya brand. (September 2015).

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INVOLVEMENT IN RESOLVING TRANSAERO SITUATION

Aeroflot Group assumed operational management to carry about 2.0 million passengers of Transaero, which ceased operations on 26 October 2015. 1.8 million passengers were carried on Transaero flights, with operational control and funding provided by Aeroflot Group, and 0.2 million passengers were carried on Aeroflot Group’s flights. Transaero’s customers got a full refund of ticket price, including the base fare, taxes and fees in case the service was not rendered. Aeroflot and Rossiya created over 6 thousand positions for ex-Transaero employees (September–December 2015).

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EVENTS AFTER THE REPORTING PERIOD

Aeroflot was awarded 4-Star Airline status by Skytrax - new level of recognition for outstanding service.

The new combined Rossiya airline launched flight operations.

LLC A-Technics, a specialist aircraft maintenance and repair subsidiary, obtained a certificate and commenced its operations.

INDUSTRY RECOGNITION AND AWARDS

  • Aeroflot was voted Best Airline in Eastern Europe for the fourth time at Skytrax World Airline Awards.
  • Aeroflot was once again given the Russian Business Travel & MICE Award as the Best Airline for Business Travellers.
  • Aeroflot won its first Randstad Award as the Best Employer in Transport and Logistics.
  • According to TravelPlus Airline Amenity Bag Awards, Aeroflot had the best children’s goody bag for kids aged 6 to 11 .
  • Aeroflot won the Readers’ Choice prize at Air Transport News Awards; PJSC Aeroflot CEO Vitaly Saveliev was named the Leader of the Year in the global aviation industry.
  • For the fourth time in a row, Aeroflot won the Condé Nast Traveller Readers’ Choice Award as the Best Russian Airline.
  • Aeroflot was recognised as the Best Air Transportation Company (Transport Infrastructure Facility) at the Transport Security in Russia 2015 National Awards.
  • Aeroflot Group was one of the 20 biggest global air carriers by passenger turnover, according to the Transport World magazine.
  • Aeroflot is among Europe’s five biggest carriers by passenger turnover and growth rate, according to Airline Business magazine.
  • According to the Centre for Aviation (CAPA), Aeroflot Group ranked second by operating profit margin among European national carriers in 2015.
  • Aeroflot won the GT Tested Reader Survey award as the Best Airline in Eastern Europe and was ranked among the top 10 airlines with the Best Airline Cuisine.
  • According to Routehappy, a search engine for comfortable flights, Aeroflot is among the top 10 airlines globally in terms of on-board Wi-Fi Internet access for passengers.
  • According to the internet portal BS Aeronautics, Aeroflot’s flight attendants are among the Most Attractive Airline Stewardesses.
  • Yahoo.com included Aeroflot in its top 10 of the World’s Chicest Flight Attendant Uniforms.
  • Aeroflot’s Twitter was named the best among Russian brands and came first in the Socialbakers rating for May.
  • Pobeda airline was named the fastest growing airline in low-cost segment by Airline Business.
  • Aeroflot’s corporate team won the first place in the Air Transport Service category of the WorldSkills Russia 2015 competition.
  • Aeroflot’s PR Department was recognised as the Best Department for Corporate Communications and Corporate Relations in Russia according to the TOP-COMM 2015 rating by the Association of Communication and Corporate Media Directors.
  • Aeroflot won the 2nd National Award for Achievements in the Field of Transport and Transport Infrastructure — the Formula of Motion Award — for best PR-activity of the year.
  • Aeroflot’s Legal Department won top prize in the Transport category of the Best Legal Departments 2015 competition.
  • Aeroflot received the international Globe Award in the Best Sponsorship Marketing category for its partnership project with Manchester United.
  • Aeroflot’s Annual Report 2014 won several awards in a number of competitions including the Annual Report Competition by the Moscow Exchange, Spotlight Awards 2015 (LACP), the competition of annual reports by the Krasnodar Region Administration (Sochi Economic Forum).
  • Aeroflot’s IR team received the IR Magazine Russia & CIS Award for the second year in a row and was named the best in the transport sector; Aeroflot’s IR case won the 8th International IR Case Competition organised by the Russian Financial Communications & Investor Relations Alliance.