OREANDA-NEWS. December 06, 2010. A regular meeting of the JSC Aeroflot Russian Airlines Board of Directors has taken place under the chairmanship of Igor Levitin, the Minister of Transport of the Russian Federation, reported the press-centre of Aeroflot.

The Board of Directors took into consideration the report on the performance of the JSC Aeroflot Russian Airlines in the 9 months of 2010 and the projections for 2010. The dynamics of the passenger transportation load in the 9 months of 2010 were higher than the average indicators in the industry. The improved transportation capacity management made it possible to increase the passenger seat occupancy rate in the 9 months of 2010 by 4 percentage points compared to the target and by 9 percentage points compared to the 9 months of 2009.

The passenger turnover increased on all the routes; the greatest increase being in the Far and Middle East and Africa (+88.3%), South-Eastern Asia and Japan (+51%). Starting from March 2010 the profit per seat has been increasing on all the routes which has had a positive impact on the results of the 9 months; the biggest increase being in America (+26.3%). The profit from the operational activity in cost accounting is expected to be 9.8 billion rubles in the 9 months of 2010. The estimated increase of net income in 2010 is expected to be 6 700 000 000 rubles compared to the target.

The Board of Directors approved the production and financial and economic activity targets as well as the profit and loss target of the JSC Aeroflot Russian Airlines for 2011. The 2011 target provides for the growth of all the operational indicators: passenger turnover by 23%, passenger carrying by 27.7% and sustaining the seat occupancy rate at 76%. The target figures takes into account the start of commercial service of the new Sukhoi Superjets (SSJ) airplanes.

The Board of Directors made a decision to sell the shares of the CJSC Sheremetyevo and CJSC Deit at market prices on a competitive basis.

The Innovative Development Program of the JSC Aeroflot Russian Airlines was introduced in a report presented to the Board of Directors. As the company's management pays considerable attention to innovative development the Chief Executive Officer of Aeroflot Airlines Company Vitali Saveliev was appointed Head of the Innovative Development Committee with the Aeroflot Board of Administration.

According to the Innovative Development Program, the innovative effectiveness of the JSC Aeroflot Russian Airlines is secured by the company's ability to use new technologies in management, production and marketing. It is a medium-term program (5 -7 years) which incorporates the priorities of the state scientific, technological and innovative policy and lists certain measures aimed at development and introduction of new technologies, innovative products and services in keeping with international standards.

The Program is integrated into the airline development business strategy, promotes modernization and technological development of the company by means of considerably improving the main operational indicators, including a significant drop in the prices of tickets without negatively affecting the standard of quality, economizing on energy resources, increasing labor efficiency and environmental friendliness of production.

Forming cooperative mechanisms and structures to promote the development and introduction of innovations has been considered when working on the Innovative Development Program. Besides, the Program provides for effective cooperation with the leading higher educational institutions, research bodies of the Russian Federation and other countries. After the Program has been assessed it will be sent to the Ministry of Transport of Russia for expert examination.

The Board of Directors sanctioned the lease of two BC Airbus A330-200 from the ILFC company in the second quarter of 2010.