HR Policy

Aeroflot Group is the leading employer in the industry, providing more than 41 thousand jobs in Russia and abroad. Aeroflot Group companies strive to provide their employees with ample professional and personal growth opportunities, offering decent salaries, a range of employee benefits, and social benefits and privileges. Aeroflot improves its incentive schemes and works on making its compensation package even more attractive.

In 2018, Aeroflot for the fourth time won the Randstad Award as the most attractive Russian employer in the Transport category.

The HR policy followed throughout Aeroflot Group airlines is based on an acknowledgement of the criticality of human resources. Aeroflot Group pays much attention to attracting and retaining employees, as well as to ensuring their professional development. The strategic goal of its HR policy is to improve performance and labour productivity by building a unique team of highly professional and engaged employees. Building corporate culture as a competitive edge is one of Aeroflot Group’s priorities.

PRIORITY AREAS OF THE HR POLICY:

• Identify candidates, including for cockpit and cabin crew positions
• Retain highly skilled employees and improve employee loyalty
• Provide timely training and retraining, including for working on board new types of aircraft
• Build up a talent pool
• Conduct employee certifications
• Develop incentive systems
• Provide employees with social benefits
• Strengthen the Group’s positive image as the leading employer in the air transportation market.

PJSC Aeroflot has in place the Corporate Conduct Code, a list of ethical and moral standards. The Company respects employees’ rights and freedoms, provides equal opportunities, and guarantees protection from any form of discrimination defined by both Russian and international law. Aeroflot prohibits any partiality to political, religious, national, or other grounds when implementing its HR policy, remuneration policy, and providing social benefits. The Company has never used, and does not tolerate, child, compulsory, or forced labour.

Personnel structure

As at 31 December 2018, the total headcount of Aeroflot Group was 41,299 employees, having increased by 5.8% year-on-year (39,051 employees as at 31 December 2017). The increase was driven by the fleet and route network expansion.

As at 31 December 2018, PJSC Aeroflot’s headcount was 24,261 employees, which represented a 5.5% increase year-on-year (22,991 as at 31 December 2017).

Women account for 52% of Aeroflot Group’s total headcount. The parent company, PJSC Aeroflot, employs 12,765 women who work in all kinds of fields: flight attendants, repair and maintenance staff, tickets sales and distribution employees, and pilots. As at the end of 2018, 54 female pilots were employed by Aeroflot airline, five by Rossiya airline, and four by Aurora airline.

As at 31 December 2018, PJSC Aeroflot employed 44 international pilots (including citizens of Belarus, Czech Republic, Azerbaijan, Hungary, Luxembourg, and Serbia)

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Personnel turnover at PJSC Aeroflot in 2018 was 7.3% (6.8% in 2017).

^{* Includes pilots-in-command, co-pilots, and other flight crew members (flight engineers, pilot instructors, and others).
** JSC Sherotel, Aeroflot Aviation School, LLC Aeroflot-Finance, and JSC Donavia.
Note. Headcount and personnel as at 2018 year-end.}

Recruitment

Recruitment aims to build up teams for the Company’s business units in a timely manner and without compromising quality. Aeroflot follows careful recruitment procedures and implements new assessment methods. Aeroflot Group’s search, recruitment, and selection processes are governed by internal regulations. When recruiting, the Company uses its official website, corporate intranet portal, job search engines, mass and social media. It also hires through public employment services. Aeroflot collaborates with relevant higher educational institutions and colleges and educational centres offering vocational education, and takes part in job fairs and career forums and expos.

Heads of units actively participate in the professional assessments of candidates and HR decision-making. Automated recruitment procedures help speed up the recruitment process and increase its quality.

Internal candidates and employees from the talent pool are given priority. The Company is thus expanding career growth opportunities for its employees.

Targeted training programme and Personal Scholarship

PJSC Aeroflot develops partnerships with educational institutions to attract promising young professionals and improve the quality of training for its future employees. Since 2013, PJSC Aeroflot has been successfully involved in a targeted training programme funded from the federal budget. Aeroflot airline concluded contracts for targeted training with three aviation universities: the Saint Petersburg State University of Civil Aviation, Ulyanovsk Civil Aviation Institute, and the Moscow State Technical University of Civil Aviation. Over this period, 347 students signed educational contracts for targeted training. PJSC Aeroflot employs 21 graduates of the targeted training programme.

The Company annually selects the best graduates of civil aviation educational institutions who will complete additional simulator training in compliance with its corporate standards. Moreover, PJSC Aeroflot’s business units engage graduates of industry schools and universities for on-the-job training and internships. A total of 68 students underwent such training in 2018.

Since 2014, PJSC Aeroflot has been cooperating with seven civil aviation technical schools and universities under the Personal Scholarship project. Cooperation agreements have been signed with Ulyanovsk Civil Aviation Institute, the Saint Petersburg State University of Civil Aviation, Buguruslan, Sasovo, and Krasny Kut Civil Aviation Schools, as well as Egorievsk and Kirsanov Civil Aviation Technical Colleges. Each year, PJSC Aeroflot allocates up to 50 personal scholarships of RUB 10,000 per month. So far, 235 students received corporate scholarships.

Personnel training and development

Aeroflot Group invests in training to help employees fulfil their potential and ensure that they maintain great professional skills, keeping in line with international standards and the Federal Aviation Rules.

In 2018, PJSC Aeroflot arranged for training for 36,500 current and future employees (some of them completing more than one training programme) both in-house and externally across a range of training, retraining, professional development, and certification programmes. The Company’s Department for Aviation Personnel Training delivered training to more than 953 people.

In 2018, Aeroflot’s subsidiary, Aeroflot Aviation School, provided training to more than 33 thousand current and future PJSC Aeroflot employees.

RETRAINING AND PROFESSIONAL DEVELOPMENT COURSES MAINLY FOCUSED ON:

• ground handling and ground service operations
• flight attendant training
• pilot retraining on new aircraft types
• engineering personnel training
• aviation security
• regulations for hazardous cargo transportation
• occupational safety
• foreign languages, etc.

In 2018, training for more than 2,500 employees was arranged at external educational institutions and training centres under the following programmes:

• Compulsory operations personnel training (training for special-purpose vehicle drivers and coordinators of special-purpose vehicle access to aircraft at the Sheremetyevo airfield; training for state inspectors; training for electric car and forklift drivers; industrial safety, etc.)
• General training programmes (civil defence, environmental protection, environmental safety, etc.).

Pilot training

When hiring pilots with prerequisite qualifications (such as experience flying the aircraft types operated by Aeroflot airline), candidate pilots pass induction training in line with established flight crew training programmes.

Prior to employment, graduates of aviation-related educational institutions are to complete additional training:

• Specifics of flights on international routes
• Technical English
• Aviation English (ICAO Level IV)

The graduates undergo the following training following employment:

• Pilot retraining on Airbus А320, Boeing 737, or SSJ100 aircraft
• Additional training on Air Transportation of Dangerous Goods, Flight Safety Management System, Flight Crew Training on Human Factor and CRM, and Aviation Security
• Induction for co-piloting an aircraft.

To streamline graduate training, PJSC Aeroflot organised training for senior-year students of educational institutions.

The training is held at civil aviation educational institutions in Ulyanovsk, Saint Petersburg, Buguruslan, Krasny Kut, and Sasovo, helping to reduce the period from hiring a graduate to their unsupervised flying by three to nine months.

Training platform

PJSC Aeroflot uses its own training platform, providing training for cockpit and cabin crews of the carrier and its subsidiaries. PJSC Aeroflot’s training platform is equipped with cutting-edge simulators and mock-ups produced both in Russia and abroad.

In 2018, annual simulator certification was arranged for, and held by, EASA bodies for the following simulators: FFS A320 Series 5000 and 7000, FFS A330, and B737 NG. In December, Aeroflot installed a new DT A350 Door Trainer. Training was organised and held by the supplier’s experts.

Training platform

PJSC Aeroflot uses its own training platform, providing training for cockpit and cabin crews of the carrier and its subsidiaries. PJSC Aeroflot’s training platform is equipped with cutting-edge simulators and mock-ups produced both in Russia and abroad.

In 2018, annual simulator certification was arranged for, and held by, EASA bodies for the following simulators: FFS A320 Series 5000 and 7000, FFS A330, and B737 NG. In December, Aeroflot installed a new DT A350 Door Trainer. Training was organised and held by the supplier’s experts.

Best in Trade professional skills competition

The Best in Trade professional skills competition is held annually and is a powerful means of motivating staff on a mass scale while enabling the highest-performing employees to be selected and promoted.

In 2018, Aeroflot won the HR Brand Award 2018 for efficient organisation of its Best in Trade professional skills competition.

One of the special features of the competition is its ever-growing scale and scope. In 2018, over a thousand employees from 30 departments representing 30 trades participated in the competition. Aeroflot awarded winners in the following corporate categories – the Best Example of Aeroflot’s Values in 2018, the Best Mentor in 2018, and the People’s Choice on the Company’s 95th Anniversary.

Talent pool

In 2018, PJSC Aeroflot continued building its talent pool. As part of building up its talent pool, the Company organises off-the-job and on-the-job professional development training for its managers while also ensuring temporary replacements for managers going on a business trip or vacation, and arranging external secondments for best practice sharing.

Incentive system

Aeroflot considers developing employee incentives a priority for improving loyalty and retaining highly skilled employees to strengthen the Group’s competitive edge. The system comprises financial and non-financial incentives. Aeroflot uses flexible incentive schemes and enhances its employees’ compensation and benefits packages.

The Company’s remuneration system takes into account position grades, business unit performance, regional labour market specifics, as well as each employee’s personal contribution. The Company’s senior management performance is assessed based on key performance indicators approved by the Board of Directors.

Attracting highly skilled pilots is one of the Company’s key objectives. Aeroflot provides competitive pay levels for pilots as well as regular salary indexation and one-off incentive payments upon employment. Aeroflot also compensates pilot training expenses.

The Company actively develops non-financial incentives. In line with its collective bargaining agreement, Aeroflot rewards employees’ high performance on industry holidays and national and corporate anniversaries.

To celebrate Aeroflot’s 95th anniversary in air transport development and recognise high professional skills, PJSC Aeroflot’s staff was awarded a Letter of Acknowledgement from the President of the Russian Federation in 2018. In 2018, 27 employees received government awards of the Russian Federation, and 244 received industry awards of the Russian Ministry of Transport and other agencies, while six employees were awarded a Letter of Acknowledgement from the President of the Russian Federation. Corporate awards were given to 1,200 employees, five of which were awarded the Aeroflot Excellence badge of honour, 521 were awarded the Certificate of Honour of PJSC Aeroflot, and 64 were awarded the Operational Excellence in Aeroflot badge.

Social programmes for employees of the Company

Concerning its employees, Aeroflot is fully committed to a socially responsible policy, which attracts qualified professionals, increases performance, improves the working environment, fosters higher staff loyalty and healthy working conditions, and maintains Aeroflot airline’s and Aeroflot Group’s profiles as socially responsible companies.

PJSC Aeroflot’s social policy is based on both the collective bargaining agreement and the applicable regulations. On 10 August 2017, the collective bargaining agreement was extended until 1 December 2020 by the joint resolution of the Company and the employees’ representative. All terms and conditions, guarantees, benefits, and privileges for employees were preserved in full. The employment package outlined in the collective bargaining agreement considerably exceeds benefits and compensations established by the applicable labour laws.

PJSC Aeroflot and its subsidiaries implement a number of social programmes contributing to the social security of employees.

Occupational pension scheme

PJSC Aeroflot runs a pension scheme based on joint participation of the employer and the employee. The occupational pension is funded by employees’ monthly pension contributions, the Company’s quarterly contributions made to individual retirement savings accounts, the annual investment income accrued on the employee’s and the employer’s contributions by a non-governmental pension fund.

Aeroflot’s occupational pension scheme is coordinated by two corporate non-governmental pension funds, the Otkritie Non-Governmental Pension Fund (previously the Non-Governmental Pension Fund RGS until 28 December 2018) and the Non-Governmental Pension Fund of Sberbank. The corporate occupational pension scheme covers 6,200 employees. In 2018, Aeroflot paid an additional 20% of each personal contribution made by employees towards their own pension.

To attract and retain key pilots-in-command, the Company has in place a special pension plan, Golden Anchor. The Company also awards annual bonuses to employees’ personal accounts in the corporate non-governmental fund. The bonus is increased annually for every year of employment with the airline.

In accordance with the Regulations on the Occupational Pension Scheme, the airline provides a corporate pension to a retiring employee in addition to the state-funded pension. As at the end of 2018, corporate pensions payments were being made to 4,200 former employees of the Company.

The Company runs its occupational pension scheme in parallel with an incentive scheme providing mandatory pension insurance through co-financed contributions to the cumulative part of the state-paid pensions. The employer matches 30% to 50% of a personal pension contribution made by insurance scheme participants.

Resort therapy

As part of the corporate resort therapy programme, employees and their families can go to health resorts located in different regions of Russia and abroad (in cases of medical necessity). In 2018, 3,800 people benefited from rehabilitation treatment provided by the Company at health resorts, including 797 children accompanied by their parents under the Healthy Child programme.

A special health rehabilitation programme for 420 pilots and flight attendants was set up in the Czech Republic. A total of 13 resorts were included in the 2018 programme.

In 2018, the resort therapy and wellness programme for employees and their families included voluntary health insurance programmes and a programme for prevention of occupational injuries and diseases.

Sports events

In 2018, sports facilities were rented for permanent sporting clubs where employees can play football, volleyball, hockey, and tennis. Aeroflot’s sports teams successfully competed in futsal tournaments for the Civil Aviation Day, Aviation and Space Cup, and Aviation Industry Cup, as well as in the corporate futsal tournament. Aeroflot’s hockey team played a friendly match against Yvon Lambert & LHL team from Canada. Fitness club memberships were also offered to Aeroflot employees throughout the year.

Corporate events

A number of events were organised to celebrate the 95th anniversary of Aeroflot, including a concert at the State Kremlin Palace and a large reception for former PJSC Aeroflot employees at a Novotel hotel

Corporate housing for key employees

During the year, the Company’s key employees from Russia’s regions were provided with companyowned housing close to Sheremetyevo airport, with more than 1,600 employees benefiting from the free lease arrangements (flight crew members accounted for 85%). Most of the housing options are provided at Aeroflot’s Flight Camp based at Ozero Krugloe Hotel Complex.

Company vehicles and corporate parking

Aeroflot provides company vehicles available for employee use to go to the Company’s offices near Sheremetyevo airport. In 2018, around 3,600 Aeroflot employees used company vehicles on a daily basis.

The Company rents seven parking lots located near Sheremetyevo airport. In 2018, Aeroflot employees occupied an average of 3,200 parking spaces in corporate parking lots per day.

Financial assistance

In 2018, the Company provided financial support to 216 current and former employees in difficult circumstances.

Reimbursement for daycare costs

During 2018, daycare costs were reimbursed for 2,500 employees of the Company

Additional employee benefits for flight crews

A number of additional employee benefits is provided to flight crew members, including:

• 70 days of paid annual leave, the longest in civil aviation
• special insurance programmes
• free access to diverse sports facilities for training.

Aeroflot’s medical centre

Subsidiary airlines

The subsidiary airlines have similar benefit programmes for their employees, including occupational pension schemes, resort therapy and vacation programmes for employees and their families, company vehicles and corporate parking lots, reimbursed rent for housing, cultural and sports events, and financial support for current and former employees.

Social partnership

Ten corporate trade unions representing four different trade unions operate within PJSC Aeroflot, including the Moscow Trade Union of Aviation Workers, the Sheremetyevo Trade Union of Flight Personnel, the Sheremetyevo Trade Union of Flight Attendants, and the All-Russian Trade Union of Civil Aviation Engineering Workers. The total headcount of all employees involved with trade unions is about 9,000 people. Employees’ interests are represented by the United Representative Body of Aeroflot’s employees, which comprises representatives of the majority of corporate trade unions.

Occupational health and safety

PJSC Aeroflot has in place an occupational health and safety system compliant with applicable regulations and international best practice. The Company has a certificate confirming its compliance with regulatory occupational safety requirements and strives to eliminate occupational injuries and diseases while implementing measures preventing hazardous situations.

The Company regularly arranges health and safety trainings with a focus on occupational diseases and injury prevention. To prevent occupational diseases, employees pass regular medical examinations.

There were 27 accidents in 2018. The injury frequency rate (the number of injuries per 1,000 employees) was 1.27 FTEs. The injury severity rate (the number of work days lost per injured person) was 29.0 in 2018.

As at the end of 2018, in accordance with Federal Law No. 426-FZ On Special Assessment of Working Conditions, PJSC Aeroflot carried out special assessments of 6,085 workplaces, 4,449 of which were found to have acceptable working conditions. Employees receive a 4% to 24% premium on their salary when a safety assessment has revealed exposure to harmful working conditions. The cockpit crew, senior flight attendants, flight attendants, flight attendant instructors, flight attendant evaluators, and other flight crew members who work on board a flying aircraft are entitled to a 24% premium for their working conditions.

Work and rest schedule for cockpit and cabin crews

Work and rest schedule for cockpit and cabin crews is determined in line with the applicable Russian regulations and the Regulations on the Work and Rest Schedule for Cockpit and Cabin Crews of PJSC Aeroflot.

The total flight duration in all aircraft types must not exceed 80 hours per month and 800 hours per calendar year. With the employee’s written consent, the total flight duration can be increased to 90 hours per month and 900 hours per calendar year. Cockpit and cabin crew members are provided with additional payments and vacation days for exposure to harmful and/or hazardous working conditions.