OREANDA-NEWS. The UTair Aviation Supervisory Board has made major decisions regarding items on the agenda as well as on the procedure of the upcoming annual general shareholders meeting, scheduled for June 30, 2014.

In a preliminary session, the Supervisory Board approved the draft of the UTair Aviation 2013 annual report and annual financial statements and forwarded documents to be considered for approval at the annual general shareholder meeting.

In 2013 UTair Aviation aircraft transported 8,182,074 passengers, a 5.3% increase over 2012, and revenue amounted to 73.6 bln RUR, an increase of 1.7% over 2012. Revenue from passenger traffic also grew by 7 % and amounted to 47,447 mln RUR at the end of 2013. The Supervisory Board excluded from the Provisions for the distribution of UTair Aviation net profit an item specifying the minimum amount of net profit to be allocated for the payment of dividends. Further, the Supervisory Board has recommended to the shareholder meeting assigning net profit for the 2013 in accordance with the revised Provisions for the allocation of the airline's net profit and to not declare or pay out dividends for 2013.

The Supervisory Board also approved a proposal to list deals to be conducted by UTair during its business activities with concerned parties as part of the voting agenda at the annual general shareholder meeting.

The Board has decided to include the issue of UTair Aviation share capital increase through issue of additional shares on the agenda of the annual general shareholder meeting. A total volume of 600,000,000 (six hundred million) shares has been proposed to be issued with an allocated price of 23 RUR 00 kopeck per share. Participants of private subscription include the Non-State Pension Fund of Surgutneftegas, a 100% owned subsidiary of the Non-State Pension Fund of Surgutneftegas - CJSC AK-INVEST and RE-Avia Ltd.

The UTair share capital increase is expected to be implemented within the previously announced and approved strategy aimed at improving the efficiency of all spheres of the company's business operations. UTair General Director Andrei Martirosov clarified that, “At this initial stage of the project it is planned to develop a classic holding company structure and make a legal separation between the UTair passenger and helicopter operations.” He also noted that the company is currently pushing forward a number of internal measures and corporate procedures within framework of this project. “Undoubtedly such a large scale project arouses considerable interest among our partners, competitors, customers and the media and this inevitably generates rumor and speculation,” Martirosov further stated, reassuring, however, that “this restructuring will open up new opportunities for development of each business area, ensure management flexibility of both the helicopter and passenger segments that will favorably affect the value of both enterprises.”

UTair Aviation ranks among the top three Russian airlines. UTair Aviation operates more than 150 fixed wing aircraft and performs flights to 110 destinations in Russia and abroad. The airline maintains its central hub at Vnukovo International Airport in Moscow, from which it performs more than 100 flights daily.