AK Transaero : Transaero Airlines Holds Annual General Meeting

| 30.06.2015

On June 27, 2015 Transaero Airlines held Annual General Stakeholders' Meeting in St Petersburg.

The meeting confirmed the company's annual report and the financial statements, including the report on profit and loss of the company for 2014.

In 2014 Transaero Airlines, despite the challenging external conditions in the second half of 2014, achieved the revenue growth as well as passenger traffic growth. The company's total revenue amounted to 117.3 billion rubles, which is a 6.9 % increase over 2013.

In the extremely unfavorable macroeconomic conditions and under the influence of the external negative factors, primarily the sharp depreciation of the ruble currency, which had an adverse effect on the state of demand and pricing/profitability, on the growth of the loan interest costs and financial leasing costs, denominated in foreign currency, on the operating costs in foreign currency, reported in rubles, the company reported a net accounting loss for 19.32 billion rubles.

The company's financial results in 2014 were achieved on the basis of the following operating results:
• The number of passengers carried was 13.2 million people (a 5.6% increase over 2013).
• Transaero Airlines' passenger turnover reached 47.1 billion RPK (a 0.1% growth in comparison with 2013).
• The passenger load factor amounted to 83.5%. This is the highest result among the five largest Russian air carriers.
• Transaero Airlines became the industry leader in terms of cargo turnover on domestic routes.
• The airline's total network exceeded 260 domestic and international routes.

According to JACDEC research center, Transaero is the only Russian airline to be included in the ranking of the top 20 safest airlines in the world.

The company currently implements the programme, launched in autumn 2014, aimed at enhancing its business efficiency. Within the programme, the company optimizes the route network and its seat capacities, enhances its profitability, significantly increases the volume of its sales through its own channels as well as the number of transit passengers, moreover, it launches new and high-demand international routes. At the same time, Transaero has managed to retain its highly professional team. The task of the further operation efficiency improvement will be the priority for the company in 2015.

The shareholders' meeting elected seven members of the Board of Directors of Open Joint Stock Company Transaero Airlines. It includes Evgeny Borodin, Gennady Zaitsev, Gagik Zakaryan, Alexander Pleshakov, Olga Pleshakova, Boris Shubnikov, and Natalia Yudina.

The meeting elected the Company's audit committee consisting of three persons.

The Transaero Airlines' shareholders' meeting approved "RSM Rus" as the official auditor of the company.

The meeting confirmed the new edition of the Regulation "On the Board of Directors of Open Joint Stock Company Transaero Airlines". Upon the initiative of the Board of Directors, the Regulation was amended stipulating the reduction of benefits to the BoD members.