OREANDA-NEWS. December 10, 2008. The scheduled meeting of the Board of Directors of the JSC “Aeroflot” was held. For the period till 2015 the Board of Directors of the JSC “Aeroflot” has considered the following matters, reported the press-centre of Aeroflot:

The strategy of developing the route network.

The strategy of developing the aircraft fleet.

The strategy of developing the JSC “Aeroflot” and the targets of the strategic development.

The Board of Directors has adopted the main principles of developing the route network and determined the priority markets of Russia and the CIS – mostly dynamically developing and providing the strategic stability to the airlines.

The Company’s Board was recommended to ensure the formation of the Aeroflot’s aircraft fleet by 2015 up to the amount, sufficient to transport 21 mln passengers a year. To increase the volume of passenger transportation in the “Aeroflot” group up to 26 mln.

The Board of Directors has adopted the targets of the Strategy of Developing the JSC “Aeroflot” for 2015:

The Aeroflot’s Mission is to assists the passengers in the realization of their life plans and dreams – to work efficiently, to relax with pleasure, to meet with their family and friends, to open for themselves new countries and cities.

The Aeroflot Vision – the leader on the regular inner and international transportation market in Russia.

The Aeroflot Values – client orientation = Value of the service for the consumer = Value added for the company.

Specialization in accordance with the type of activity within the “Aeroflot” group –regular air passenger transportation with the help of the network carrier model.

The aim of the JSC “Aeroflot” – To build the international class company, basing on the best traditions of the civil aviation of Russia.

The main tasks to gain the aim:
to strengthen the leading position in the civil aviation of Russia;

to ensure the passenger transportation to the majority of the world cities, creating convenient and economically sound own route network and cooperating with the partner airlines;

to provide the passengers with the stable quality of servicing on the level of the competitors or higher under the Aeroflot mark.

to reach the level of production and economic indexes of the airlines, included into the Association of European Airlines;

To create the efficient company and personnel management system.

The general aims of the JSC “Aeroflot” by 2015:
to ensure the enlargement of the share of the JSC “Aeroflot” in the aggregate regular passenger transportation of the airlines of Russia in the amount of transported passengers up to 30-35% when providing the profitability;

To become the client oriented company – the leader among the Russian air carriers on the passenger loyalty level (the company, chosen by the passengers).

In order to gain the strategic aims the company determines the following priorities within the main strategies on the market:

the growth strategy (broadening the presence on the market), obtained by means of organic, marketing growth and acquisition of the airlines;

the market strategy – the best proportion between Value and price for the chosen segments of consumers (the balance of the branch parity in expenses and quality differentiation);

Strategy of competitive advantages – the use of the transportation network model with the formation of the HUB at the Sheremetievo airport, regional HUBs in Russia and other target markets with a wide network of international transportation. To get the profit from the best knowledge of the target consumers’ wishes.

The main way to gain the general aims – development of the air transportation on the inner market of Russia, and, simultaneously, to preserve the unique competitive advantage of the JSC “Aeroflot” in the regular transportation market share.

The key factors of success of the JSC “Aeroflot” in 2015:

focusing on the flow destinations O&D (origin and destination);

more effort aimed at holding the existing passengers;

competition in order to grow the amount of the high income passengers;

the highest level of flight safety in Russia;

full value HUB in Sheremetievo – effective docking and capacity;

the leading position in the regular share of the Civil Aviation of the Russian Federation;

the aircraft fleet - economically effective and adequate to the network;

additional consumer value owing to the product and brand.

The Board has considered the System of Planning and Budgeting in the JSC “Aeroflot” and, anticipatorily, the main target indexes of the draft plan of the production and financial and economic activity and the budget of the JSC “Aeroflot” for 2009.

After having considered this matter, the Board of Directors commissioned the Company’s Board with finalizing the preparation of the draft plan of the production and financial and economic activity for 2009, taking into account the situation on the world financial market and air transportation market.

In the run-up to the consideration of the plan of the production and financial and economic activity for 2009-2011 the JSC “Aeroflot”, the Board of Directors considered the issue of adaptation of the three-years’ strategic plan within the Program of Anti-crisis Management and recommended the Company’s Board to use the program of increasing the profitability, when preparing the three-years’ plan, realization of which is directed to improving its financial results.