(Will continue to add feedback as I finish it)
One morning this week, I was minding my own business scrolling through Instagram and saw a post that caught my eye. At the beginning of the term I noted that “Before reading and research Aeroflot, the only things I knew about Russia was figure skaters Evgenia Medvedeva and Alina Zagitova (current world champion).”
Well, the post that caught my eye was from Alina Zagitova who, to me, appears to be in collaboration with Aeroflot doing an advertisement to get more people to travel to Russia.
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Всем привет 😊 ☀️ Вы знаете, что я часто летаю, и у меня для вас приятная новость! Ceгодня @aeroflot✈️ запускает конкурс "РОССИЯ УДИВЛЯЕТ"🇷🇺🌍, и я приглашаю всех вас принять в нём участие. Опубликуйте фотографию, по которой путешественники, которые ни разу не были в России, ни за что не догадались бы, что на фотографии Россия, а узнав, что это Россия, приятно удивились бы 😯 🤩. Давайте покажем всему миру, какая красивая страна Россия💟 и как много в ней удивительного! Я, например, решила опубликовать свою недавнюю фотографию потрясающего места в Москве. Делитесь и вы своими фотографиями 📸 и обязательно ставьте хэштеги #аэрофлот #россияудивляет . Победитель обязательно получит классный приз в виде авиабилетов🎁. Hi! ☀️😊 I am pleased to share that @aeroflot launches a new promo "RUSSIA SURPRISES" 🇷🇺🌍 and you are welcome to participate in it. Post any picture of any sightseeing in Russia so that travellers who have never been here could hardly imagine it is Russia. And since they hear "This is Russia" they would be positively surprised 😯🤩. Let's show how beautiful Russia is to the world. I have decided to post a recent picture of Moscow river and Moscow State University. Share YOUR pictures 📸 with hashtags #аэрофлот #россияудивляет . The winner will deserve the present (tickets) 🎁. Good Luck! 😉 こんにちは☀😊今日は、@aeroflotの新たなキャンペーン "RUSSIA SURPRISES" 🇷🇺🌍を紹介できてとても嬉しいです。是非、キャンペーンにご参加ください。その場を訪れたことない”旅人”が、それがロシアだとイメージできないほどのきれいなロシアの観光写真を投稿ください。彼らが「これはロシアだ」と聞いたときに、とても驚くような写真が良いです😯🤩 世界の中でも、ロシアがどれだけ美しい国か、是非見せてあげましょう。私は、モスクワ川とモスクワの州立大学の写真を投稿することに決めました。あなたの写真を、#аэрофлот #россияудивляетというハッシュタグとともに、投稿ください。勝者には、プレゼントのチャンスが🎁. グッドラック! 😉
So what does this mean for Aeroflot? Despite everything happening with the company from crashes to losses, maybe this is a way for them to be seen from a different group of people since Alina is seen as an influencer to some.
I think it might be a great move for Aeroflot since advertising through influencers allows them to see a niche community engage. After all, consumers then to be trusting if they are getting their information from an influencer who is endorsing the product. So, this might be just what Aeroflot needs in their journey to further growth.
I have (finally) made it to the end of this assignment and am ready to start receiving some feedback so I can improve on what I have written!
I have found this subject challenging but it made me think in ways I never had before!
Let me know if you would like feedback and I will happily do so.
Have a great day!
I am relieved that I am finished with the hardest parts of this assignment! This being said, I hope you all are tracking well with your assignments and are getting ready for a well deserved break week next week.
I have just completed step 7 and am now ready to start receiving and giving feedback! I have attached steps 3-5 and 7 below. Can’t wait to begin reading what other people’s financial statements include compared to mine.
Now to get that feedback finished before getting right back into it for assessment two!
I found this to be a valuable learning task as I was opened up to diving deeper into my firm’s financial statements. While it may have tested my patience at times when it didn’t balance, I got there in the end after figuring out where I had gone wrong.
I started by completing my income statement and was feeling confident till I got to the end and it didn’t balance. After hours of going over all of it with the help of Maria’s checks and balances it still wasn’t balancing. I decided to delete everything I had done for the income statement and start again. Before I restarted this, I went on and did my balance sheet which, thankfully, balanced straight away.
The next day I decided to re-watch Maria’s video and start over with my income statement restating. Once again, I got to the end and it did not balance. I took a step back for a moment and went in line by line with a new perspective. I learnt that some of my classifications may have been wrong since airlines are something completely new to me. By doing this I found that one of my main issues to why it wouldn’t balance was that I had messed up the calculation for my finance income, essentially counting it twice. So once I had fixed that I thought it would be smooth sailing from here onward but no. It was still not balancing. This is when I realised, after another long period of time looking over what lines I had entered, that I had added in the Profit/(loss) for the year attributable to: shareholders of the company and non-controlling interest. These are already accounted for as a total earlier within my income statement. This made me realise that there can be things as simple as that, that are completely overlooked when classifying and then entering when it comes to restating.
For me, learning what is classified as operating and financial activities was interesting and educational when getting to know my firm better. Yes, I have looked at firm’s before and considered what is operating and financial but this was vastly different when it came to some of the accounts that a present within the income statement and balance sheet. Not every company is the same and that is important for me to remember.
My restated income statement’s total comprehensive income/(loss) for the year showed me that there has been a trend of a loss in 2015 then a profit in 2016 and 2017 but then in 2018 they have once again made a loss. I had previously identified that this loss was due to the expansion of their firm which means loans being taken out for buildings and aircraft’s.
Overall, it may have been frustrating at times but in the end it was rewarding seeing everything come together to balance successfully while giving me an insight into Aeroflot.
Aeroflot: Sincerely Yours
When I received this company I was excited. Before reading and research Aeroflot, the only things I knew about Russia was figure skaters Evgenia Medvedeva and Alina Zagitova (current world champion). Aeroflot Group is one of Russia’s largest airline groups and is also one of the Top 20 world airline groups. They are one of the oldest airlines in the world dating back to 1923. In 2018, they carried 55.7 million passengers which accounts for 40.7% of Russia’s air-travel market.
The key people at Aeroflot is the CEO Vitaly Savelyev, he has been the CEO since December 2014. During December last year, the Russian government appointed Russia’s Minister of Transport, Evgeny Ditrich, as chairman of the board.
The Group has over 300 regular destinations to 56 countries, with Aeroflot (Russian Airlines) operating 163 routes with its main hub at Sheremetyevo International Airport and headquarters in Moscow. Aeroflot, as of January 2019, has over 30 codeshare agreements with airlines across the world.
The Group has a total revenue of 611.6 RUB billion, in Australian dollars, this is around 13 billion. They have a current stock price of 108.02. When reading their history something that did concern me is that two airlines that Aeroflot partly owned were declared bankrupt in 2017. The reason for this is unknown but the two airlines were low budget.
Another thing that was concerning when researching news articles is that in May this year one of their planes crashed killing 41 people and causing Aeroflot to cancel dozens of flights following the tragic plane crash. This incident could have easily driven consumers away from using that airline which would result in a loss in profits. When looking for videos about Aeroflot it was almost impossible for me to find anything positive since a majority was about the plane crash mentioned.
However, looking into the news for more positive things was easier as they have just added the Airbus A320 Neo to their fleet, starting operations early next year, and have also become a global partner and official airline of the 2019 International Basketball Federation (FIBA) World Championship.
It appears that from just looking at Aeroflot’s website and news articles I can get a good sense of what they are even though I was overwhelmed with the amount of information and detailed history there is. With reports that they are constantly expanding their routes and adding more aircrafts to the already large company, they have goals set that I am sure I will find out about after diving deep into their annual reports.
Hope everyone had a great break and is now settled in for the new term.
Here is my draft for step one for assignment 1. I used my previous knowledge of KCQs to complete this so I’m hoping it is what Martin is looking for!
Hope everyone has a great day.