Aeroflot is the undisputed leader of the Russian air transport market and one of the most successful airlines in Europe. JSC Aeroflot, the Group’s flagship carrier carried more than 20.9 million people in 2013, while the total number of passengers flown by all of Aeroflot Group’s airlines reached 31.4 million. Aeroflot Group held 37% of the Russian market by passenger traffic (excluding foreign airlines) and 23% of the market for cargo.
JSC Aeroflot was one of the fastest growing and largest airlines in Europe in 2013, ranking second by growth of revenue passenger kilometers (RPK; +19.2%) and available seat kilometers (ASK; +17.8%) according to the Association of European Airlines, against European averages of +2.7% and +1.7%, respectively.
In 2013, for the second year running, Aeroflot was the only Russian airline among the five largest European airlines by passenger traffic and capacity. Aeroflot revenue passenger kilometers for 2013 totalled 60.2 billion, with available seat kilometers of 76.4 billion.
Aeroflot has a rich and eventful
Aeroflot Group’s strategy focuses on profitable growth, further gains in operating efficiency and introducing new technologies and innovative solutions. The Group aims to become a leading carrier on the global aviation market and to secure a dominant position on routes between Europe and Asia.
JSC Aeroflot has one of the youngest aircraft fleets in Europe, with 143 modern airliners as of 31 December 2013. Aeroflot Group operates fleets with a total of 239 aircraft and includes the following airlines: Aeroflot, Donavia, Rossiya Airlines, Orenburg Airlines and Aurora Airlines (a new Far East carrier created in 2013 with the merger of Group subsidiaries Vladivostok Air and SAT Airlines). A new low-cost carrier within the Group, LLC Dobrolet, was registered as a legal entity in 2013 and is scheduled to start operations in 2014.
A multi-brand strategy enables the Group to successfully expand its presence in all key market segments on both domestic and international routes. The creation of new airlines Aurora and Dobrolet gives the Group access to new segments and anticipates the future of air travel.
Aeroflot’s own route network includes 156 destinations in 56 countries. Aeroflot is a member of the SkyTeam global airline alliance. The route network of Aeroflot Group includes 293 regular destinations in 65 countries.
51.17% of the shares of JSC Aeroflot belong to the Russian Government. Aeroflot is included in the list of strategic enterprises and strategic joint stock companies by Russian Presidential Decree № 1009 of 4 August 2004.
Aeroflot’s shares are listed on the Moscow Stock Exchange (ticker: AFLT) in the highest A1 quotation list. The Company’s shares trade in the main T+2 sector and the Classica sector. Outside Russia Aeroflot shares trade as global depositary receipts (GDRs) at the over-the-counter section of the Frankfurt Stock Exchange. In December 2013 the Russian Central Bank gave permission for trading in depositary receipts on Aeroflot shares outside Russia, enabling the launch of a Level-1 ADR programme. In January 2014, the U.S. Securities and Exchange Commission announced the commencement of a Level-1 ADR programme for shares of JSC Aeroflot.
In this Annual Report, the terms “JSC Aeroflot”, “Aeroflot” and “the Company” refer to the parent company of Aeroflot Group: Joint Stock Company “Aeroflot — Russian Airlines”. “Aeroflot Group” or “the Group” refers to JSC Aeroflot together with its subsidiaries.