JSC Aeroflot meets its procurement needs in compliance with Russian law, including Federal Law №
JSC Aeroflot used modern and competitive methods for procurement, including electronic methods. The Company ensures transparency in its procurement activities and excludes any discriminatory and unreasonable restrictions on the number of procurement partners.
Electronic auctions for procurement purposes
The total value of electronic auctions increased by 11.3% in 2013, while the share of auctions with only one participant decreased in both value and in terms of numbers, indicating more efficient procurement using competitive procedures. Electronic auctions accounted for 97.98% of the total number of auctions carried out in 2013 and electronic auctions represented 40.49% of total procurement amounts, complying with the requirements of the Federal Property Agency (Instruction № GN-13/1206 from 21.01.2011).
Bids in procurement auctions
The total number of procurement bids filed by counterparties increased by 42.4% to 38,975. The average number of bids submitted for each competitive procedure increased by 28.6% to 3.51, which indicates the openness and accessibility for all market participants of procurement procedures at Aeroflot.
The use of open competitive procurement procedures and changeover to formula pricing helped to optimize expenses and reduce costs in purchases of aviation fuel, which is one of the Company’s principal cost items. By making long-term contracts Aeroflot reduced risks associated with limited supply of certain types of goods, works and services on the market.Top