The Board of Directors discussed the issue of Aeroflot flights safety provided in 2003. It was stressed that supporting aircraft fleet airworthiness remained the prior goal of the airline company. They also said that the activity of the airline company’s departments in 2003, the ones providing safety first of all, was aimed at supporting high level of flights safety that had been stabilized recently and was within the range of 99.94%-99.98%. According to IATA classification such level can be estimated as the “good” one.

The Board of Directors noted that with the increased transportation volume in 2003 a number of aircraft failures reduced in comparison with 2002. This can be proved by the results of objective control tools as well as by the statistics. A number of incidents caused by external factors impact have increased (hail, atmosphere discharge, hit of birds and other objects). As a result of the discussion the issue the complex program of preventive measures for providing flight safety in 2004 worked out by the Board was approved. The Board of Directors recommended to the Company’s Board to control the Company so that not only the top management but also all the personnel (about 12,000 employees) were anxious about the high level of flight safety.

The Company’s preliminary operating results of 2003 have been summed up; the production and financial indicators were higher compared with the level of 2002 (according to the experts’ estimation). Operation net income amounted to 113 mln dollars. The Board of Directors took into account the operation activity results, and in April the final results of operation and financial activity of the airline company in 2003 are to be summed up on the whole.

The Board of Directors considered the issue concerning the Company’s movables. It was noted that the situation on the Russian housing market is favorable today for buying living quarters and offices of representatives because rent excels property price rise. The Board of Directors recommended Director General buying buildings for offices and apartments for representatives to use both forms giving priority to aquiring property for the Company taking into account financial terms of purchase and sale contracts or rent.

Dozens offices of the airline company spread out in different districts of Moscow city don’t provide efficiency of the control over the Company’s operation activities either. On one of the next meetings of the Board of Directors it was decided to consider deliberately the issue to construct the office in Moscow for the company’s employees.

An important issue for the Company is introduction of new information technologies. Considering this point the Board of Directors approved the information technologies development program for 2004 presented by the Board; it included introducing new systems into commercial activities, seat reservation and booking (electronic reservation). A complex system of the operation activity control, computer-based system of Russian aircrafts maintenance, the centralized system of warehouse accounting are to be developed. It is planned to complete the process of SAPR3 information system introduction in the Company’s accounting and budgeting system. Introduction of these systems is expected to improve significantly financial and economic, operation, and commercial activities of the Company.

The Board of Directors approved the Code of Corporate Conduct presented by the Company’s Board.

The Board of Directors appointed Professor Eliseev Boris Petrovich, Doctor of Law, as Deputy Director General – the Head of Legal Issues Department.