Moscow, 2014-7-31 — /Travel PR News/ — The Board of Directors of Aeroflot (“the Company”, Moscow Exchange ticker: AFLT) yesterday approved a dividend policy (the “Policy”) for JSC Aeroflot.
The 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 establishes Aeroflot Group’s consolidated net profit under International Financial Reporting Standards (“IFRS”) as the basis for calculation of future dividend payments.
Aeroflot will aim to pay dividends equal to 25% of the Group’s IFRS net profit. The decision on the size of dividends will be based on a formula that takes into consideration the Company’s financial results in the reporting year, debt level and medium-term financial plan, specifically the availability of sources of financing for investment activities and debt repayments as well as the Group’s capital expenditure plans.
Aeroflot CEO Vitaly Saveliev said: “One of Aeroflot’s top priorities is to further improve its corporate governance system, ensuring transparency and predictability for investors regarding the Company’s dividend payments. Introduction of a dividend policy is an important step that will further enhance our investment case which will benefit both our minority shareholders and the Russian Government.”
Aeroflot Board of Directors Chairman Kirill Androsov said: The framework for determining dividends approved by the Board will help to establish a proper balance between the interests of the shareholders and the Company, contributing to the further development of Aeroflot and the growth of the shareholders’ prosperity.”
The full text of JSC Aeroflot’s dividend policy will be published on the Company’s website.
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Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2013, its 90th anniversary year, Aeroflot carried 20.9 million passengers (31.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance,Aeroflot and its partners serve more than 1,000 destinations in 178 countries worldwide. Aeroflot operates one of the most modern and youngest fleets in Europe, numbering 156 Airbus, Boeing and Sukhoi airliners with an average age of 3.9 years. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the fifth time in 2013, Aeroflothas successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008 compliant. In 2014 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the third time. Find more at www.aeroflot.com.